Last update 2/23/2012 12:07:00 PM (GMT+7)

FDI statistical error could be up to 10 billion dollars

VietNamNet Bridge – The information that there could be a big statistical error in calculating the foreign direct investment (FDI) has produced a stir. If the information is true, the figure would be very big of up to 10 billion dollars.

The report on the assessment of the operation efficiency of foreign invested enterprises and the solutions to speed up the disbursement of FDI projects in 2011, which has been released by the Vietnam Association of Foreign Invested Enterprises (VAFIE), has shown that many problems still exist in the statistical work.

When organizing a series of workshops to assess the operation efficiency of FIEs, VAFIE realized that of the implemented capital of FDI projects, 20 percent comes from domestic sources, and 80 percent from foreign sources. Meanwhile, to date, Vietnam still does not have separate statistical figure about foreign sourced capital.

The association has also pointed out that since Vietnam’s FDI calculation method is different from the international practice, the figures released by Vietnamese agencies do not fit the figures reported by international institutions, including the figures of UNCTAD.

The UNCTAD’s report about FDI released in July 2010 showed that by the end of 2009, the implemented FDI capital had reached 44 billion dollars. Meanwhile, the Vietnamese Statistical Yearbook says the figure was 67 billion dollars.

As such, if the figure about 20 percent of domestically sourced capital is true, the actual foreign sourced capital would be 54 billion dollars only, which means the big error of 10 billion dollars.

VAFIE, which analyzed 450 poll forms, has found out that the ratio of disbursed capital on registered capital was low, about 40 percent, or 6.8 percent lower than the reported statistics.

Also according to VAFIE, since the day the decentralization mechanism was applied, the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment cannot obtain updated figures about FDI all over the country. It does not have the updated registered capital and the implemented capital in different periods to show a panorama of FDI in Vietnam.

In fact, the reports about FDI situation released by FIA have been made on the reports of local authorities and industrial zone management boards. Therefore, experts believe that the reports are not scientific and convincing enough, which does not allow to truly assess the situation to draw up reasonable solutions.

The shortcomings not only relate to the speeding up of the FDI capital disbursement, but also to the FDI state management efficiency. The main task of the FDI state management is to attract more international investment capital under the principle of striving to sustainable development.

In order to settle the problems, the association believes that it is necessary to adjust the FDI information system with modern means, via Internet which connects the FIA’s information center, FIEs, local planning and investment departments, and industrial zone management boards, the State Bank of Vietnam, the General Taxation Department and the General Department of Customs. The renovation in the information system would help truly assess the FDI attraction to draw up reasonable policies.

The General Statistics Office has released a report showing that in January 2012, FDI registered capital in the month reached 37.3 million dollars, equal to 2.5 percent of the same period of the last year. Most of the projects were in processing, manufacturing industries (27.1 million dollars). Among the countries which have newly licensed projects, France was the biggest investor, followed by Japan and South Korea.

Despite the unsatisfactory FDI capital in the first month of the year, MPI believes that this is not worrying, because Vietnam still has been receiving commitments from loyal investors, especially Japanese.

Source: TBKTVN