FDI to Vietnam’s Healthcare, Social Work Down 1.67% in Jan-Jun: Ministry

Vietnam has attracted $82.4 million in three foreign direct investment (FDI) projects on healthcare and social work in the first half of this year, down 1.67% from a year earlier, as shown in statistics by the Ministry of Planning and Investment. The figure accounts for just 0.78% of the country’s total FDI of $10.47 billion during the six-month period, the ministry said. The FDI inflow to these sectors in Vietnam remains low at $1.304 billion in 85 healthcare and social work projects as of June 20, versus the country’s total FDI of $218.84 billion. The domestic health sector has failed to meet the demand because of a lack of qualified workers and poor infrastructure, resulting in an outflow of over $2 billion in overseas healthcare expenses each year. Total investment in healthcare services in Vietnam has remained low, accounting for only 7%-8% of gross domestic products (GDP). The government plans to raise the state budget for the sector by 4%-5% on year in 2013 with an aim to better medical services for the locals. (mpi.gov.vn June 24)