Vietnam sees 2012 disbursed foreign investment to rise 10 pct

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Vietnam expects disbursements of foreign direct investment to rise by as much as 10 percent in 2012 after forecasting it will be flat at $11 billion this year, Dang Huy Dong, Vice Minister of Planning and Investment said in an interview in Hanoi Tuesday.

The actual amount forecast to be disbursed compares to pledged foreign investment that may total $15 billion to $16 billion this year, Dong said, without giving a figure for next year. Vietnam attracted $18.6 billion of committed foreign investment in 2010, according to figures on the ministry's website.

The government is struggling to tame inflation, which quickened at 23.02 percent in August, the fastest in 33 months and the fastest pace in Asia. The central bank ordered lenders yesterday to set aside more dollars as reserves for the third time this year, aiming to limit lending growth and steady the dong.

"There are forceful policies and we started to see positive results," Dong said. "We believe that somewhere early next year or mid next year, things will come back to normal as before."

The value of expansion in existing foreign investment projects reached $1.6 billion so far this year, according to Dong. The figure "showed that their businesses are good here. If their businesses in Vietnam are not good, if they don't see it's good in the future, then why should they expand their investment," Dong said.

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