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Vietnam foreign investment down 66% in 2009
Tuoi Tre

Estimated foreign direct investment (FDI) into Vietnam in 2009 plummeted by 66 percent year-on-year to US$21.48 billion, the Foreign Investment Agency has announced.

Foreign investors pledged $16.34 billion to 839 new projects, a 73 percent drop from last year.

The remaining $5.13 billion was promised as increased investment in 215 projects already underway.

This year, foreign direct investment actually released to projects in Vietnam totaled $10 billion, compared to $11.5 billion last year.

The hospitality remained the sector attracting the most investment, with $8.8 billion promised.

The second most popular sector for FDI pledges was real estate with $7.6 billion, surpassing the $2.97 billion pledged in the processing and manufacturing sector.

The United States topped the list of 43 foreign investors in 2009 with a combined registered capital of $9.7 billion, followed by Cayman Islands and Samoa, both of which are offshore tax-havens.

Southern Ba Ria-Vung Tau Province was the most attractive destination for foreign investors with $6.7 billion pledged, followed by central Quang Nam Province and neighboring Binh Duong Province.

Vietnam has set a target of attracting $20 billion in FDI this year, less than one-third of what was pledged the year before.

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