FDI inflows drop in first half of the year

Thursday, Jun 26, 2014 08:33

The country attracted US$6.85 billion in foreign direct investment (FDI) in the first half of this year. — Photo baodautu

HA NOI (Biz Hub) — The country attracted US$6.85 billion in foreign direct investment (FDI) in the first half of this year, down 35 per cent as compared to same period last year.

According to the latest report of the Foreign Investment Agency, of the total US$6.85 billion, $4.85 billion came from 656 newly-licenced projects while the remainder was from 219 existing projects, which raised their levels of capital, it said.

In a brighter spot, the period's FDI disbursement saw a modest increase of 0.9 per cent and was estimated to touch $5.75 billion.

The manufacturing and processing sector absorbed the largest share of FDI, touching $4.8 billion or 70.2 per cent of thenation's total registered capital. Construction and real estate trading industries ranked second and third, respectively.

Among the 41 countries and territories investing in Viet Nam, South Korea was the leading source of FDI with $1.55 billion, accounting for 22.6 per cent the total FDI registered in the country. It was followed by Hong Kong ($1 billion), Japan ($806 million) and Singapore ($732.1 million).

According to the report, the economic hub of HCM City was the most attractive destination for foreign investors with $886.3 million or 13 per cent of the nation's total FDI, followed by the southern provinces of Binh Duong and Dong Nai, with $876.1 million and $688.37 million, respectively.

Other ideal localities preferred by foreign investors included the northern provinces of Quang Ninh and Hai Duong and southern Tay Ninh province, where they registered to invest $573.5 million, $382.1 million and $349.9 million, respectively.

During the January to June period, the foreign-investment sector generated $47.82 billion from exports, a yearly rise of 17 per cent or equivalent to 67.5 per cent of the country's total export turnover, while its imports reached $39.29 billion, up 11.4 per cent. — VNS

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