In 2011 net foreign direct investment in Belarus will make up $4 billion, Economy Minister of Belarus Nikolai Snopkov said at a meeting of the Council of Ministers.

“Belarus remains an attractive destination for foreign investment. This is confirmed by the results of 2011,” said the minister. Net foreign direct investment is expected to reach $4 billion by the year-end. In general, $12-13 billion worth of foreign direct investment will have been involved in the economy by the end of the year. This is twice as much as in 2010. Over the past five years, the amount of FDI has increased 7.4 times, said Nikolai Snopkov.

“The structure of net foreign direct investment shows that there is an untapped potential of attracting foreign investment in industry,” the minister said. Foreign investment continues to be predominantly injected in the services industry rather than in those economic sectors that currently have a competitive advantage. Only 6.3% of net FDI has been raised by the government-run enterprises. This demonstrates significant reserves in this area, said Nikolai Snopkov.

The minister drew attention to the shortcomings in the area of sale of inefficient government-owned enterprises and unused real property.

Attracting foreign direct investment is the priority of the investment policy of the country, as determined by the socio-economic development program of Belarus up to 2015, and confirmed by the recently held seminar on import substitution. Foreign direct investment is the most important factor determining economic growth, stability of the resource provision and, consequently, higher competitiveness, stressed the minister.

BelTA