Vietnam 2009 FDI inflow down 13 pct

VNStockNews.com - Foreign direct investment into Vietnam this year fell 13 percent to $10 billion while the value of new pledges plunged by 75.6 percent, a government report said.

New pledges between January and December this year were estimated to reach $16.35 billion, a quarter of the record $66.5 billion pledged in 2008, according to the Planning and Investment Ministry report seen on Monday.

Existing projects received funds totalling $5.14 billion, down 1.7 percent from last year, the report said.

Foreign investment inflows, along with overseas remittances, are a key source of foreign exchange helping Vietnam offset its trade deficit.

Prime Minister Nguyen Tan Dung said last week that Vietnam's economy grew 5.2 percent this year, but economic stability had not been sustained because of the trade deficit and lower foreign reserves following falls in foreign investment, exports and remittances. (Reuters)