Vietnam’s foreign investment up 45% in eight months Print
Tuesday, 05 September 2017 11:53

VIETRADE- Foreign investors have registered to invest US$23.36 billion intoVietnam in the first eight months of this year, surging 45.1% over same period last year, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

 

Of the sum, US$13.45 billion came from 1,624 newly-licensed projects, a year on year rise of 37.4%, US$6.4 billion from 773 existing projects which added capitals, up 40.2% while the remaining was from the capital contribution and share purchase of foreign investors.

 

According to the agency, the disbursement of foreign direct investment (FDI) in the period saw a positive yearly growth of 5.1% to US$10.3 billion.

 

From January to August, foreign investors poured the capital into 18 industries.  Of which, the manufacturing and processing industry lured that largest share of FDI with US$11.69 billion, accounting for 50% of the country’s total registered capital. The electricity production and distribution industry came second with US$5.36 billion or 22.9% while the mining industry ranked third with US$1.28 billion or 5.5%.

 

The Republic of Korea remained the largest foreign investors in Vietnam with a registered capital of more than US$6 billion, making up 25.7% of total FDI registered in the country in the eight-moth period.JapanandSingaporefollowed with US$5.74 billion and US$3.92 billion, accounting for 25% and 17% of the total capital, respectively.

 

Among 58 localities nation-wide, southern economic hub ofHo Chi Minh Citywas the most attractive destination for foreign businesses as it absorbed US$3.3 billion in FDI or equivalent to 14.1% of the country’s total FDI. It was followed by the centralprovinceofThanh Hoawith US$3.06 billion or 13.1% and northern Bac Ninh province with US$3.05 billion or 13%.

 

The business performance of the foreign-invested firms was also optimistic during the period. Their exports, including crude oil, rose 15.5% to US$95.66 billion, making up 71.6% of the country’s total export revenue. With an import value of US$81.38 billion, these businesses gained an eight-month trade surplus of US$14.28 billion.

 

The Ministry of Planning and Investment (MPI) said it is drawing up a report summing up 30 years of foreign direct investment since approval of the national Law on Foreign Investment, looking back at the impact of opening the country’s doors to multinational companies.

 

The report will go into details on major issues related to FDI, such as support industries, technology transfer, infrastructure, the high-tech agriculture and service sectors, as well as preferential policies and taxation, and prospects for the future.

 

According to MPI, the foreign-invested sector had helped rebuild the country’s economy, increase export revenue, expandVietnam’s reach to world markets, generate jobs, acquire technology transfers, management skills and attain global economic integration.

 

As of August, 2017,Vietnamwas home to 23,972 valid foreign-invested projects with capital totaling US$308.59 billion and over half of the sum was disbursed, the Foreign Investment Agency said. 

 

Manufacturing and processing industry attracted the largest amount of FDI with approximately US$182.6 billion, following by real estate sector with US$51.27 billion and electricity, gas and water production and distribution sector with US$17.8 billion.

 

Up to 124 countries and territories had their investments intoVietnamuntil the reviewed period. TheRepublicofKoreaandJapanwere the two biggest with respective investments of US$55.61 billion and US$45.9 billion. Other large foreign investors also includedSingapore,Taiwan,BritishVirginIslandandHong Kong.

 

Out of 63 provinces and cities, Ho Chi Minh City took the lead with US$42.3 billion, following by two southern province of Binh Duong and Ba Ria – Vung Tau with US$28.9 billion and US$26.8 billion, respectively and the capital city with US$26.6 billion./.



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