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FDI inflows into Vietnam surge in 11 months

FDI inflows into Vietnam surge in 11 months

Vietnam lured $31.8 billion in foreign direct investment (FDI) in the first 11 months of this year, up three per cent year-on-year, Foreign Investment Agency (FIA) data shows.

Of the figure, $14.68 billion was poured into more than 3,470 new projects, up 28 per cent for the number of projects but down seven per cent in terms of capital.

Up to $5.87 billion was pledged to 1,256 existing projects, equivalent to 80 per cent of the value from a year ago, but up 20 per cent in the terms of the number of projects.

During the period, foreign firms invested $11.24 billion in Vietnam through capital contributions and share purchases, representing a yearly rise of 47 per cent and accounting for 35.4 per cent of the total registered capital.

The eleven-month FDI disbursement reached an estimated $17.69 billion, surging 7.2 per cent over the same period last year, the FIA said.

Notably, from January to November, the number of business delegations arriving in Vietnam to seek investment opportunities increased by 30 per cent compared to last year’s corresponding period. Most of them came from Japan, South Korea, mainland China, Hong Kong and Singapore.

Processing and manufacturing remained the most attractive sector to foreign investors during the 11 month period, drawing $21.56 billion, making up 67.8 per cent of total FDI pledges. Property trading came second at $3.31 billion (10.4 per cent of the total), followed by wholesale and retail and science and technology.

Among the 117 countries and territories investing in Vietnam, Hong Kong retained its crown as the largest investor with $6.69 billion, making up 57 per cent of the nation’s total FDI. It was followed by South Korea with $5.73 billion (18 per cent) and Singapore with $4.47 billion (14 per cent). The country’s other sources of FDI were mainland China and Japan.

Hanoi was the largest FDI recipient during the period with $6.82 billion, accounting for 21.5 per cent of the total. Ho Chi Minh City ranked second with $5.48 billion (17.2 per cent), followed by the southern provinces of Binh Duong and Dong Nai and the northern province of Bac Ninh.

The FIA said the foreign-invested sector earned nearly $166.7 billion from exports in the reviewed period, four per cent higher than the same period last year or equivalent to 69 per cent of the country’s total export value.

The sector spent $134.1 billion on imports, up three per cent year-on-year, resulting in a trade surplus of nearly $32.6 billion.

As of November 20, the country was home to more than 30,470 valid foreign-invested projects with total registered capital of $360.69 billion. Nearly 60 per cent of the FDI pledges had been disbursed.

The agency also said that Vietnamese firms poured $460 million into 177 projects abroad in the first 11 months.

Of the total, 148 new projects attracted $354 million worth of Vietnamese investment while the remainder came from 29 which raised their capital by nearly $105 million.

Most of the overseas investment focused on wholesale and retail at $118 million, 26 per cent of the total. Agro-forestry-fishery and science and technology were the runners-up with $66 million and $60 million, respectively.

Vietnamese firms invested in 31 countries and territories in the period. Australia lured the lion’s share of investments with $141.3 million, over a third of the total. The US came next with $93.4 million, or 21 per cent.

Other destinations for Vietnamese investments were Cambodia, Spain, Singapore and Canada.

VIET NAM NEWS/ASIA NEWS NETWORK

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