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Vietnam’s FDI inflow reaching USD 32 billion

Thursday 28, 11 2019
According to statistics of Foreign Investment Agency (Ministry of Planning and Investment), as of November 20, 2019, the total newly registered and adjusted foreign direct investment (FDI) together with purchase of shares of foreign investors had reached nearly USD 31.8 billion, up 3.1% compared to the same period in 2018.
Vietnam’s FDI inflow reaching USD 32 billion
In particular, there are 3,478 newly licensed FDI projects with a total registered capital of USD 14.68 billion, equivalent to an increase of 28.2% in the number of projects and a decrease of 7% in the capital volume compared to the same period last year.

Major projects

Projects that have been granted with investment registration certificates are: Wanna Explore Travel Co., Ltd. (Egypt) located in Ho Chi Minh City with a total registered capital of USD 300 million, providing travel services including operating tours and other direct supporting services for air transport; LCD-Qisda Vietnam Factory (Taiwan), located in Ha Nam with a total registered capital of USD 263 million, producing liquid-crystal display monitors. In addition, there is also the project of manufacturing electronic equipment, network equipment and multimedia audio products, with a total registered investment capital of USD 260 million, invested by Goertek Co., Limited Hong Kong) in Bac Ninh. 

Besides, there are 1,256 projects registered to adjust investment capital, with a total additional capital of USD 5.87 billion, which is an increase of 20% in the number of projects and a decrease of 10.7% in the capital compared to the same period last year. Statistics of the Foreign Investment Department also show that, contrary to the downward trend in newly and additionally registered capital, FDI registered capital contribution and share purchase of foreign investors continued to increase sharply. 

Specifically, over the past 11 months, Vietnam has received 8,561 turns of capital contribution and share purchase by foreign investors, with a total value of USD 11.24 billion, up 47.1% over the same period in 2018 and accounting for 35.4% of total registered capital.

Attracting more FDI

In the past 11 months, capital contribution and share purchase has increased sharply. According to the Foreign Investment Agency, investment in the form of capital contribution to purchase shares tends to account for an increasing proportion of the total foreign investment in Vietnam.
In 2017, this form of investment accounted for 17.02% of the total registered capital; in 2018 it reached 27.78% while in the first 11 months of 2019, it makes up 35.4% of the total registered capital. Besides, the disbursement capital in the past 11 months was quite positive with USD 17.62 billion being realized, up 6.8% over the same period last year.

In terms of investment partners, as of November 20, 2019, there have been 117 countries and territories having investment projects in Vietnam. In particular, Hong Kong leads with a total investment of USD 6.69 billion (of which, USD 3.83 billion was used buy shares of Vietnam Beverage Co., Ltd. Hanoi, accounting for 57.5% of total investment capital of Hong Kong); South Korea ranked second with a total investment capital of USD 5.73 billion, accounting for 18% of total investment capital into Vietnam; Singapore ranked third with a total registered investment capital of USD 4.47 billion, accounting for 14%; following are China and Japan.

Foreign Investment Agency also said that investment from China and Hong Kong tended to increase over the same period due to the impact of US-China trade war. Specifically, investment from China increased nearly 2 times while that from Hong Kong increased 3.9 times over the same period in 2018.

Experts believe that Vietnam is one of the most successful countries in attracting and using FDI. So far, there have been 30,136 projects with a total registered capital of USD 360 billion and realized capital of nearly USD 210 billion. The openness of the country’s economy now reaches over 200% of GDP.

Currently, attracting FDI is among Vietnam’s major goals, aiming at socio-economic development and international integration. Not only does it have a stable political advantage and attractive investment environment, Vietnam is also trying to attract FDI with strong commitments to improve the business environment.

Besides, there should be a connection between the FDI sector and the domestic private sector. According to Mr. Jacques Morisset - Chief Economist of the World Bank in Vietnam, in addition to focusing on attracting high-tech, less labor-intensive and environment-friendly projects, connecting FDI and domestic businesses to improve the efficiency of FDI attraction is also an important solution. For foreign investors, it is very important to evaluate the efficiency of investment and the cooperation of FDI with domestic enterprises.
Source: tapchitaichinh
 

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