January FDI surges on manufacturing growth

Tuesday, Jan 27, 2015 08:11

Experts have also forecast that Viet Nam will possibly step up FDI in 2015 as a result of the advantages offered by FTAs, which were signed in 2014.— VNA/VNS Photo Trong Dat

HA NOI (Biz Hub) — Total foreign direct investment (FDI) in Viet Nam surged 67.1 per cent to US$664 million in January, up from a year ago, the Foreign Investment Agency reported yesterday.


Of the total, $505 million has been disbursed, reflecting an 8.6 per cent year-on-year growth.

During this period, the country also licensed 44 new FDI projects worth a registered capital of $392.18 million, up 85.5 per cent against the same period last year. Another 19 existing projects were also licensed to add a registered capital of $271.26 million, up 45.8 per cent.

Foreign investors in January poured capital into 11 industries, of which processing and manufacturing were considered the most attractive, with 18 projects drawing a total of $605.69 million. The industry accounted for up to 91.3 per cent of the country's total FDI in January.

Retail and repairing; and water and power production and distribution industries followed with $30.79 million and $10.44 million, respectively.

In January, 15 countries and territories channelised capital into Viet Nam, of which the British Virgin Islands topped the list with $331.32 million, accounting for 49.9 per cent.

The Republic of Korea (RoK) and Hong Kong ranked second and third, with $110.25 million and $105.5 million, respectively, representing a 16.6 per cent and 15.9 per cent share.

Among the 13 cities and provinces receiving FDI in January, the southern economic hub of HCM City was the most attractive destination, with its 24 projects worth $347.2 million, representing a 52.3 per cent share. The southern province of Binh Duong and the northern port city of Hai Phong also reported FDI of $100 million and $96.72 million, respectively.

The largest FDI projects were namely the British Virgin Islands' Worldon Viet Nam Co's $300 million project in HCM City, Hong Kong's Regina Miracle International Viet Nam Co's $90 million project in Hai Phong and RoK's Taekwang MTC Viet Nam project worth $43.2 million in Dong Nai.

FDI in Viet Nam is forecast to increase significantly this year as many large-sized FDI projects, such as the $22 billion worth Victory Nhon Hoi oil refinery complex, are expected to get licences.

Experts said licensed projects worth billions dollars have so far helped Viet Nam attract many other supply projects, which are in accordance with the Government's sustainable growth strategy with investment encouragement extended to high-technology, added value creation for exports and the supply industries.

Bac Ninh, for example, has so far successfully attracted many international giants in the high-tech industry, such as Canon and Sumitomo of Japan, Samsung of the Republic of Korea, Foxconn and Mictac of Taiwan. It has also drawn investment from Tyco Electronics of the United States, ABB from Sweden and Nokia from Finland.

The northern port city of Hai Phong has also created a hub for attracting heavy industry projects worth hundreds of millions of dollars from GE, Kyocera, Bridgestone, Fuji, Xerox and Toyota.

Experts have also forecast that Viet Nam will possibly step up FDI in 2015 as a result of the advantages offered by FTAs, which were signed in 2014.

Vo Tri Thanh, the Deputy Director of the Central Institute for Economic Management, pointed out that signing three FTAs with the European Union, the RoK and the Customs Union of Russia, Belarus and Kazakhstan, will offer great advantages to Viet Nam and help it attract FDI in the short run. — VNS

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