Garment products are made by workers of the South Korean Hana Kovi Viet Nam Co in the northern province of Bac Giang. — VNA/ VNS Photo Danh Lam

Foreign direct investment (FDI) registered in Viet Nam in the first five months of this year fell 17 per cent year-on-year to US$13.9 billion, a report by the Ministry of Planning and Investment’s Foreign Investment Agency has shown.

The figure, however, was higher than that seen in the same five-month period from 2016 to 2018 at $10.1 billion; $12.1 billion and $9.9 billion, respectively.

During the period, 1,212 new projects were licensed with a total registered capital of $7.44 billion, up 15 per cent in capital thanks to the liquefied natural gas (LNG) plant project worth $4 billion in the southern province of Bac Lieu, but down 11 per cent in the number of projects year-on-year.

Meanwhile, 436 existing projects were allowed to raise their capital by $3.45 billion, up 31 per cent in capital and down 14 per cent in the number of projects.

From January to May, 3,528 projects have had nearly $2.99 billion in capital contributed by foreign investors, a yearly hike of 12 per cent in the number of projects but a year-on-year reduction of 61 per cent in value.

The five-month FDI disbursement totalled $6.7 billion, representing a decline of 8.2 year-on-year, according to the report.

Foreign investors injected their capital into 18 fields and sectors in five months. Of them, manufacturing and processing led the pack with capital exceeding $6.87 billion, accounting for 49.4 per cent of the total FDI.

Electricity production and supply came next with $3.9 billion or 28 per cent of the total, followed by wholesale and retail with $945 million and real estate with $801.2 million.

The data also revealed that Singapore was Viet Nam’s leading source of FDI with $5.3 billion. Thailand, China and Japan were the runners-up with $1.46 billion, $1.27 billion and $1.26 billion, respectively.

Among cities and provinces receiving FDI in the five-month period, Bac Lieu has attracted the largest share of capital commitments with $4 billion. It was followed by Ba Ria-Vung Tau with $1.93 billion and HCM City with $1.6 billion.

In his speech at a government meeting late last week, Prime Minister Nguyen Xuau Phuc said many investors consider Viet Nam a safe investment destination with a lot of advantages after the COVID-19 pandemic is pushed back.

According to experts, investment is expected to be poured into four industries: information technology and high technology, electronic equipment, e-commerce and logistics, and consumer goods and retail. Therefore, localities should seize this opportunity to draw investment.

Phuc said the Government, localities and sectors must create optimal conditions in terms of production premises, necessary and attractive incentives, administrative procedures, and human resources.

Attracting foreign investment with high-tech and high added value projects is an essential trend, the PM said, adding that authorities should make it easier for all economic sectors, particularly the private sector, to successfully do business in Viet Nam.— VNS