Foreign investment reaches $10.5b

Wednesday, Jun 26, 2013 10:34

Workers pack confectionery at Singapore's URC Vietnam Co in the southern province of Binh Duong. The processing and manufacturing industries remain on top of a list of 18 sectors that received foreign investment in the first half of this year.— VNA/VNS Photo Quach Lam
HA NOI (Biz Hub)— Newly registered and additional foreign direct investment (FDI) capital in Viet Nam totalled US$10.5 billion in the first half this year, or a 16 per cent increase over the same period last year.

The figure represents 80 per cent of the annual target, the Ministry of Planning and Investment's Foreign Investment Agency reports, adding that the FDI surge was mainly due to additional capital.

The country licensed 554 FDI projects with newly-registered capital of more than $5.8 billion, 3.7 per cent higher than the corresponding period last year.

It also permitted additional capital of $4.7 billion for 217 projects, up 35.7 per cent from last year.

An estimated $5.7 billion from the FDI projects has been disbursed during the period, a 5.6 per cent year-on-year rise, completing 55 per cent of the annual target.

The processing and manufacturing industries remained on top of the list of 18 sectors that received foreign investment. They received 259 new and additional projects with capital of $9.3 billion, accounting for 89 per cent of the total.

The property sector was second with combined capital of $419.6 million, accounting for 4 per cent. It is followed by retail and wholesale sectors with 79 new projects worth $178.2 million.

According to the agency, among the 45 countries and territories that have invested in Viet Nam, Japan ranked first with newly-registered and additional capital of $3.99 billion in the reviewed period, followed by Singapore with $3.41 billion.

The central province of Thanh Hoa attracted the most FDI in the period, with an additional $2.8 billion for the Nghi Son Oil Refinery Ltd Co project, accounting for 26.9 per cent of the national total.

The northern province of Thai Nguyen was second with over $2.15 billion, followed by Bac Ninh with more than $1.3 billion.

South Korea's Samsung Electronics Viet Nam contributed one-third of the total FDI in the first half of the year. It received approval from the Government to raise its investment in northern Bac Ninh Province from $1.5 to $2.5 billion.

In March, it also began the construction of a $3.2 billion high-tech complex in Thai Nguyen Province.

Exports from the FDI sector including crude oil were estimated at $41.1 billion, increasing 24.7 per cent against the same period last year and accounting for 66 per cent of total export turnover.

Exports excluding crude oil reached $37.7 billion, representing a 28.3 per cent year-on-year rise.

The sector's imports reached $35.7 billion, up 27.8 per cent from last year.

FDI enterprises saw a surplus of $5.4 billion while the country witnessed a trade deficit of $1.4 billion.

However, FDI attraction had decreased in both Ha Noi and HCM City, said the General Statistics Office (GSO).

Ha Noi saw registered and additional capital of $300.5 million in 104 projects, decreasing 15.5 per cent over the same period last year.

HCM City attracted $490.9 million of newly registered and additional FDI.

Of the total, $188.9 million went into 175 newly registered projects, and $302 million was added to 52 existing projects.

Authorities in the capital have reviewed some projects to allow additional capital, including a velodrome project worth $500 million, the Quoc Oai Urban Area project worth $140 million and the SAS Hotel project worth $236 million. — VNS

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