Pandemic drags down FDI attraction

Wednesday, Dec 02, 2020 08:48

Automobile production of Toyota in Vinh Phuc Province. — Photo VNA

Viet Nam had attracted a total of US$26.43 billion in foreign direct investment (FDI) this year as of November 20, equal to 83.1 per cent of the figure in the same period last year, according to a recent report from the Ministry of Planning and Investment.

The global economy has been battered by the coronavirus pandemic, the ministry noted, while investors have been unable to travel due to restrictions.

During the period, 2,313 new projects were granted investment registration certificates, a year-on-year decline of 33.5 per cent. Total registered capital stood at $13.6 billion, down 7.6 per cent.

Regarding additional capital, 1,051 projects registered to adjust their capital, down 16.3 per cent year-on-year, while the total capital topped $6.3 billion, a year-on-year rise of 7.8 per cent.

Some $6.5 billion was poured into 5,812 capital contribution and share purchase deals made by foreign investors, a fall of 41.8 per cent.

Foreign investors channelled capital into 19 fields, with the largest amount, of over $12.7 billion, going to manufacturing and processing. Power generation and distribution followed, with more than $4.9 billion from foreign investors, then real estate with nearly $3.8 billion and wholesale and retail sales with $1.5 billion.

FDI came from 109 countries and territories, of which Singapore took the lead with nearly $8.1 billion, accounting for 30.6 per cent of the total. South Korea followed, with $3.7 billion, then China with $2.4 billion.

Foreign investors invested in 60 cities and provinces nationwide. The Mekong Delta’s Bac Lieu province led the way, with one mega project worth $4 billion, accounting for 15.1 per cent of total capital. HCM City and Ha Noi were second and third, with $3.8 billion and $3.2 billion, respectively, making up 14.4 per cent and 12.2 per cent of the total.

The ministry’s Foreign Investment Agency said export revenue of the foreign-invested sector had picked up after being pinned down for 10 months.

Excluding crude oil, the sector’s shipments totalled $179.5 billion for the 11-month period, up 6.9 per cent year-on-year and accounting for 70.7 per cent of the country’s total export revenue.

Foreign firms purchased $148.9 billion worth of products from abroad in the period, a yearly increase of 9.1 per cent and making up 63.5 per cent of total import revenue.— VNS

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