FDI commitments to Viet Nam down 14% in 8 months

Friday, Aug 28, 2020 06:25

Clothing products are made by workers at South Korean KH VINA COMPANY LIMITED in the central province of Thanh Hoa. — VNA/VNS Photo Vu Sinh

The country lured US$19.54 billion in foreign direct investment (FDI) in January – August period, down 14 per cent year-on-year, a report by the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment has shown.

In the first eight months of the year, 1,797 new projects were licensed with total registered capital of $9.73 billion, a yearly hike of 6.6 per cent but a decline of 25.3 per cent in the number of projects year-on-year.

The FIA attributed an increase in fresh FDI commitments in the period to the liquefied natural gas (LNG) plant project worth $4 billion in the southern province of Bac Lieu, accounting for 41.1 per cent of the total new FDI registered in the country.

Meanwhile, 718 existing projects were allowed to raise their investment capital by $4.87 billion, up 22.2 per cent but down 21 per cent in the number of projects.

According to the FIA, the additional investment of $1.38 billion in the Petrochemical Complex project in Ba Ria-Vung Tau Province and $774 million in the West Lake urban project directly contributed to higher capital pledged in operating projects.

During the eight-month period, 4,804 projects included nearly $4.93 billion in capital contributed by foreign investors, marking respective decreases of 8.2 per cent in the number of projects and 47.2 per cent in value year-on-year.

Manufacturing and processing attracted the lion's share of FDI with over $9.3 billion, accounting for 48 per cent of total registered capital.

Electricity production and supply came next with $4 billion, or 21 per cent. It was followed by real estate with $2.87 billion, and wholesale and retail with $1.21 billion.

The report showed that in the first eight months of 2020, Singapore retained its position as Viet Nam's largest foreign investor with $6.54 billion, followed by South Korea ($2.97 billion, or 15.2 per cent), and China ($1.75 billion, or nearly 9 per cent).

Among 59 cities and provinces receiving FDI in the period, Bac Lieu took the lead with $4 billion, making up 20.5 per cent of total FDI. Ha Noi came second with nearly $2.86 billion, or 15 per cent. HCM City ranked third with $2.62 billion, or 13.4 per cent.

The FIA said due to the impact of the COVID-19 pandemic, export turnover of the foreign-invested sector continued to decline from January to August. Its export earnings reached $113.1 billion, equivalent to 95.5 per cent of the same period last year, making up 65.1 per cent of the country's total export value.

The sector's imports also saw a modest decrease of 5.3 per cent to nearly $90.8 billion in the period, accounting for 55.6 per cent of the nation's total import value, it noted.

On the contrary, the value of overseas investments by Vietnamese enterprises experienced a year-on-year rise of 16 per cent to over $330 million in the first eight months, according to the FIA.

Of the sum, nearly $220 million was poured into 86 new projects, up 21 per cent year-on-year while the remainder of $112 million went to additional investment in 25 existing projects, up 13.3 per cent year-on-year.

Over the first eight months, Vietnamese investors have invested abroad in 13 sectors. The processing and manufacturing industry ranked first with 16 new projects and total registered capital of $226 million, accounting for 68.4 per cent.

Accommodation and catering service followed with a total investment of $39.6 million, accounting for 12 per cent. Other sectors included wholesale and retail sector, technology and communications.

Germany was the largest market for Vietnamese investment in January-August, with four projects, capitalised at $92.6 million, accounting for 28 per cent of total investment capital. Laos ranked second with $86.7 million, accounting for 26.3 per cent. Myanmar, the US and Singapore were the runners-up. — VNS

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