FDI disbursement up despite a decline in capital inflow

Wednesday, Sep 04, 2019 08:30

Footwear are produced for export at the Japanese Midori Safety Footwear Viet Nam in the central province of Quang Nam. — VNA/VNS Photo Danh Lam

Disbursement of foreign direct investment (FDI) saw a positive yearly increase of 7 per cent to nearly US$12 billion in the first eight months of this year, despite a fall in new FDI registered in Viet Nam.

From the beginning of this year to August, the country lured a total of $22.63 billion worth of FDI, marking a slight decrease of 7 per cent year-on-year, updates from the Foreign Investment Agency under the Ministry of Planning and Investment revealed.

More than 2,400 new foreign-invested projects were granted investment licences with a total registered capital of $9.13 billion in the period, up 25 per cent in terms of number of projects but down 32 per cent in level of capital over the same period last year.

Meanwhile, nearly 910 existing projects adjusted their investment capital with a total additional sum of $4 billion in the eight months, representing a yearly increase of 24 per cent in the project number but equivalent to 72 per cent of capital seen in last year’s corresponding period.

Notably, foreign capital flow to buy stakes in Vietnamese companies rose by 80 per cent year-on-year to total $9.51 billion, according to the data.

Foreign investors poured most into the manufacturing and processing sector totalling $15.7 billion, or 70 per cent of the nation’s total FDI. It was followed by real estate with $2.32 billion or 10 per cent and the wholesale and retail industry with $1.2 billion or 5.2 per cent.

Among 103 countries and territories investing in Viet Nam, statistics showed that Hong Kong remained to be the largest in the eight-month period, pouring in nearly $5.63 billion, accounting for 25 per cent of the total FDI pledged in the country.

South Korea came next with $3.48 billion, making up 16 per cent of the total FDI and Singapore ranked third with $3.27 billion or equivalent to 15 per cent. Mainland China and Japan were the runners-up with $2.78 billion and $2.34 billion, respectively.

The capital city retained its crown as the top destination for FDI flow which attracted $5.66 billion in the first eight months, accounting for 25 per cent of the total registered capital. HCM City ranked second with $3.86 billion or 17 per cent, then the southern province of Binh Duong with $1.95 billion or 9 per cent.

As per the data, foreign-invested businesses gained an eight-month export turnover of $117.9 billion while their imports hit $96 billion. That resulted in a trade surplus of $21.8 billion.

So far, there were more than 25,530 operating foreign-invested projects in Viet Nam with capital totalling $353.7 billion. The country’s major sources of FDI were South Korea, Japan, Singapore and Taiwan.

In the next 10 years, Viet Nam will place greater emphasis on selecting investments which employ modern and environmentally friendly technologies, pursuant to the first decision on foreign direct investment (FDI) issued by the Politburo this month.

Investments which introduce efficient technologies that produce greater added-value and help integrate the country’s industries into the global supply chain will receive priority. — VNS


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