HCM City drew the largest share of FDI with $687.7 million, followed by Hai Duong Province with $248.1 million and Binh Duong Province with $223.5 million.— Photo baodautu

HA NOI (Biz Hub) — Newly registered and added foreign direct investment capital (FDI) tumbled to US$3.3 billion in the first quarter of this year, down by 49.6 per cent compared to the same period in 2013, according to the General Statistics Office.

However, the country's disbursement of FDI in the first quarter rose 5.6 per cent against the same period last year to $2.85 billion. During the period, processing and manufacturing was the most attractive sector to foreign investors, accounting for $2.33 billion or 69.9 per cent of the country's FDI inflow. Real estate followed with $288.3 million, accounting for 8.6 per cent.

HCM City drew the largest share of FDI with $687.7 million, followed by Hai Duong Province with $248.1 million and Binh Duong Province with $223.5 million.

South Korea topped the list of overseas investors in Vietnam with $534.2 million worth of newly registered and added capital. Hong Kong followed with $264.5 million, and the Virgin Islands (UK) and Singapore also invested $238.7 million and $230.7 million, respectively.

Domestic experts recently forecasted that the strong flow of FDI into Viet Nam from multinational groups would continue in the 2015-20 period.

Chairman of the Viet Nam Association of Foreign Invested Enterprises Nguyen Mai stated that the global economy was on the mend, and successful businesses were scurrying to find lucrative investments.

Mai noted that universally, they considered Viet Nam among the top investment destinations in the world, largely attributable to its population of nearly 100 million, of which 15 per cent belong to the middle class, and the country's solid economic growth rate.

However, the Government must improve FDI related policies, they said.

Deputy Director of the Ministry of Planning and Investment's Foreign Investment Agency, Nguyen Noi, emphasised that drastic measures to improve the business environment would be undertaken. Most notably, measures would be adopted to simplify customs formalities and streamline procedures to establish businesses, he reported.

The Ministry of Planning and Investment is also gathering recommendations on the revised draft Law on Investment, which is expected to create a more transparent investment climate by amending and adding new administrative procedures and addressing the difficulties in gauging investment performance. — VNS