VN attracts over $11b FDI in first half of 2016

Tuesday, Jun 28, 2016 09:07

Medicines are produced at the German-funded B. Braun Viet Nam in Ha Noi's Thanh Oai Industrial Complex. Viet Nam attracted more than US$11.2 billion foreign direct investment in the first half of the year. — VNA/VNS Photo Danh Lam
HA NOI (Biz Hub) — The total foreign direct investment (FDI) registered in the country in the first half of the year reached more than US$11.2 billion, the Foreign Investment Agency (FIA) said.

This is a significant surge of 105 per cent against the same period last year.

Of the total, $7.5 billion came from 1,145 newly licensed projects, representing a yearly increase of 95 per cent in capital and 56 per cent in the number of projects.

The remainder was contributed by 535 already-operating projects that had raised their capital by more than $3.78 billion, or 129 per cent, year-on-year.

Disbursement of FDI surged to an estimated $7.25 billion in the six-month period, a year-on-year rise of 15 per cent, FIA reported.

Manufacturing and processing industries continued to be the top sector, receiving FDI of $8.06 billion, comprising 71 per cent of the total registered FDI. The sector attracted 488 newly registered projects and 405 existing projects increased their capital.

The sector was followed by the real estate sector, with 25 projects holding total capital of $604.8 million, accounting for 5.3 per cent of the total FDI. The science and technology sector took third place, with $562.3 million, or 5 per cent of the total FDI.

From January to June, 61 countries and territories invested in Viet Nam. South Korea remained the leading investor, with $3.99 billion, 35 per cent of the FDI pledged to the country. Japan was the runner-up, with $1.22 billion, or 10 per cent of the FDI. Singapore followed with $1.1 billion, accounting for another 10 per cent of the total FDI.

Among the 53 localities, the northern port city of Hai Phong was the most attractive destination for foreign investors. The city attracted $1.74 billion in FDI, comprising 15.4 per cent of the total FDI registered in the country in the first half of the year. The city received a $1.5-billion OLED display factory project from LG Display.

The capital city was close on its heels with $1.63 billion, or 14.45 per cent of the total FDI. The southern Binh Duong and Dong Nai provinces took the third and fourth places, with $1.07 billion and $928.9 million respectively.

FDI in textile and garments

The country's garments and textiles sector this year has not received any major FDI projects despite previously seeing two years of surging investment in the industry.

Alone last year, the sector attracted up to $1 billion in FDI for three major projects including Hyosung Dong Nai (Turkey), Polytex Far Eastern (Taiwan) and Worldon Viet Nam (Hong Kong).

Nguyen Hong Giang, general secretary of Viet Nam Cotton and Spinning Association, said the year 2015 marked a record high for investment in the sector as investors wanted to take advantage of opportunities presented by the new FTAs.

He said the decline in FDI in the sector should not be a cause for concern because it is still receiving attention from foreign investors.

Sharing the ideas, the Belgium Ambassador to Viet Nam, Jehanne Roccas, told a conference held in Ha Noi recently that garments and textiles would continue to receive attention from investors due to the advantages presented by export markets, lower tariffs and new investment flows.

The Viet Nam Textile and Garment Association said foreign investors would continue to keep an eye on the sector until 2018. However, localities have remained cautious when considering investors who require large numbers of labourers or large plots of land, such as garment and textile companies. — VNS

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