The dramatic plunge of overseas investment is continuing despite strong signs of a regional turnaround.
The Ministry of Planning and Investment said the value of foreign investment applications from the beginning of this year to March 31 was just 26 per cent of that in the first quarter of last year.
Ministry figures show Vietnam licensed foreign investment proposals of just US$121 million - including US$32.6 million in capital expansion for existing foreign projects - in the first three months of this year, mostly in the oil sector.
The number of proposed foreign-invested projects last year fell dramatically against 1998's figures which were also significantly lower than in 1997.
The continuing downward trend has raised concern Vietnam is falling further behind its neighbours, despite attempts to streamline bureaucratic procedures.
Le Dang Doanh, head of the Central Institute of Economic Management, warned that Vietnam must urgently embrace further reforms.
