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Vietnam’s FDI inflow up in 10 months

VNS/VOV

Vietnam attracted USD 29.11 billion in foreign direct investment (FDI) in the first ten months of 2019, up 4.3% over the same period last year, the Ministry of Planning and Investment’s Foreign Investment Agency said on 28 October.

A graphic shows Vietnam’s FDI attraction in the first ten months of 2019. — Source VNA

FDI disbursement also saw a year-on-year increase of 7.4% to an estimated USD 16.21 billion during the period, the agency said.

From January to October, the country licensed 3,094 new projects with total registered capital of USD 12.83 billion, up 26% in the number of projects but down 15% in the level of capital.

The agency attributed the drop in new registered capital to the smaller scale of projects, with the biggest one this year worth USD 420 million in comparison to the same period last year that saw large-scale projects including a Japanese smart city, valued at USD 4.14 billion, and a Republic of Korea-invested polypropylene manufacturing plant and liquefied petroleum gas warehouse, worth USD 1.2 billion.

Up to 1,145 existing projects were allowed to raise their capital by USD 5.47 billion in the first ten months of 2019, equivalent to 83.6% of the value from a year ago.

According to the agency, foreign firms invested USD 10.81 billion in Vietnam during the period through capital contributions and share purchases, representing a year-on-year increase of 70.5% and accounting for 37.1% of the total registered capital.

Processing and manufacturing remained the most attractive sector to foreign investors, drawing USD 18.83 billion, making up 68.1% of the total FDI pledges. Real estate came next with USD 2.98 billion (10.2% of the total), followed by wholesale and retail and science and technology.

Among the total 107 countries and territories investing in the country, Hong Kong was the largest investor with USD 6.45 billion, followed by the Republic of Korea (RoK) with USD 5.52 billion and Singapore with USD 4.21 billion.

The capital city retained its position as the largest FDI recipient during the period with USD 6.61 billion, accounting for 22.7% of the total. HCM City ranked second with USD 4.96 billion or 17%, followed by the southern provinces of Binh Duong and Dong Nai and the northern province of Bac Ninh.

Exports by the foreign-invested sector (including crude oil) in the first ten months were worth USD 150.4 billion, up 3.9% year-on-year. Exports excluding crude oil stood at USD 148.7 billion, up 4.1%.

Imports by the FDI sector were USD 122.1 billion, up 4.4% against the same period of 2018. The FDI sector therefore recorded a trade surplus in the first ten months of USD 28.3 billion including crude oil and USD 26.6 billion excluding crude oil.

Overseas investment 

Vietnamese enterprises invested nearly USD 412 million in foreign markets in the first ten months of 2019, the agency also announced the same day. 

Of the investments, USD 312 million was poured into 128 new projects while the remaining USD 100 million was pledged to 28 existing projects.

Their outbound investment mainly focused on the wholesale and retail sector at USD 111 million, accounting for 27% of the total.

The agro-forestry-fisheries sector took second place with total investment of USD 66 million, making up 16%, followed by science and technology at USD 59.4 million, accounting for 15% of the total.

Vietnamese firms invested into 30 countries and territories in the period. Australia lured the biggest amount of investment with USD 141 million, accounting for 34% of the total.

The US came next with USD 62 million or equivalent to 15%, followed by Spain, Cambodia, Singapore and Canada.

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