The nationalization of foreign companies in strategic sectors of the Venezuelan economy during the past year have spread fears among the transnational companies operating in Venezuela and have made the country unattractive for future foreign investments, according to experts.

Currently the Venezuelan government controls more than 90 percent of the cement industry as well as most companies in the electricity, oil and steel sectors and a share of the telecommunication sector. As a result, foreign companies have been forced to reduce or sell their interests in Venezuela, AFP reported.

The increase of government control of economy, which is also subject to price regulations and exchange controls that reduce the profitability and competitiveness of foreign firms in Venezuela, has slowed the pace of foreign investments in the country, analysts said.

"Foreign investments should be at least 3 percent of Gross Domestic Product (GDP), about USD 6 billion, and we do not reach 10 percent of that figure, the Venezuelan economist Orlando Ochoa told AFP.