FDI disbursements up 10% in five months

Wednesday, May 30, 2018 16:13

A Lotte Mart store in Go Vap District, HCM City. South Korea retained its position as Viet Nam’s leading source of FDI in the first five months of 2018. — Photo lottemart.com.vn

Foreign direct investment (FDI) disbursements rose 10 per cent year-on-year to US$6.75 billion in the first five months of 2018, Foreign Investment Agency (FIA) statistics reveal.

FDI-registered capital, however, continued to decline in the same period, with 1,076 newly-licensed projects worth nearly $4.66 billion. While these figures represent a 15 per cent increase in volume, statistics also showed a 17 per cent drop in value compared to the same period last year.

Capital addition to existing projects likewise plunged by 46 per cent year-on-year to approximately $2.5 billion in five months.

This year’s capital reductions can be attributed to the fact that the first five months of 2017 saw some new large-scale projects licensed while those already operating with high capital also expanded their investment scales, analysts said.

In five months, foreign investors contributed capital and bought shares worth $2.75 billion, a year-on-year surge of 56 per cent.

From January to May, FDI pledged in the country totalled about $7.15 billion, an annual reduction of 31 per cent, according to the data.

Statistics also showed foreign investors had injected their capital in 17 industries and fields during the same period. The manufacturing and processing sectors attracted the lion’s share of FDI with $5.18 billion, accounting for 52 per cent of total investments.

The real estate sector came second with $1.07 billion, making up 11 per cent of the total, while the wholesale and retail sector ranked third with $1.02 billion or 10.3 per cent of the total.

South Korea retained its position as Viet Nam’s leading source of FDI with $2.63 billion, accounting for 26.5 per cent of total investments in the country, followed by Japan with about $1.52 billion or 15.4 per cent, and Singapore with $1.11 billion or 12 per cent.

Among 53 localities, HCM City lured the largest FDI in the five month period, with $2.93 billion, accounting for 24 per cent of the total FDI registered in the country. The northern port city of Hai Phong and the capital city were the runners-up with $1.07 billion or 11 per cent and $835 million or 8.4 per cent, respectively.

According to the FIA, the foreign-invested sector posted a five-month export turnover of $66.7 billion, up 15 per cent year-on-year and making up 72 per cent of the country’s total export value.

The sector’s imports also experienced a slight increase of 7 per cent to $52.85 billion. That meant it enjoyed a surplus of $13.81 billion during the period, the FIA said. — VNS

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