Tuesday, 19 Dec 2017

FDI in Vietnam hit new record high of over US$33 billion

Updated at Sunday, 03 Dec 2017, 15:53
The Hanoitimes - Foreign direct investment (FDI) registered in Vietnam hit a new record US$33.09 billion in the 11 months of this year, up 82.8 percent year-on-year.
Of the sum, $19.8 billion came from 2,293 new projects, up 52 per cent year-on-year, according to the latest report from the Ministry of Planning and Investment’s Foreign Investment Agency.
Another $8 billion was added to 1,100 existing projects, 57.6 percent higher than the same period last year.
The remainder of the FDI, worth $5.29 billion, came from 4,535 deals made by foreign investors to contribute capital to businesses and to buy shares of Vietnamese businesses, jumping 57.6 per cent compared with last year’s corresponding period.
Manufacturing and processing industries received US$14.95 billion of the total registered FDI in the 11 months.
Manufacturing and processing industries received US$14.95 billion of the total registered FDI
in the 11 months.
During the reviewed period, FDI disbursement also saw a positive yearly increase of 11.9 percent to $16 billion, according to the data.
Among 19 industries and sectors attracting FDI capital in the past 11 months, manufacturing and processing industries remained the top sector, receiving $14.95 billion, accounting for 45.2 percent of the total registered FDI.
The electricity production and distribution sector ranked second with $8.37 billion, representing 25.3 per cent of the total FDI. The real estate sector was in third place with $2.5 billion, totaling 7.6 per cent.
Among 112 countries and territories investing to Vietnam in the period, Japan surpassed South Korea to become the leading investor in Vietnam with $8.94 billion, making up 24.7 per cent of the FDI pledged to the country. It was followed by South Korea with $8.19 billion, or 24.7 per cent of the FDI, and Singapore with $4.69 billion, or 14.2 per cent.
The southern economic hub of Ho Chi Minh City was at the top among 59 localities receiving FDI during the eleven-month period with $5.68 billion, accounting for 17.2 per cent of the country’s total FDI.
The northern province of Bac Ninh was the runner-up with $3.28 billion, or 9.9 per cent of the total FDI. The central province of Thanh Hoa came third with $3.16 billion, or 9.5 per cent.
With $28.24 billion of FDI capital received in the ten months of this year, Vietnam has surpassed the target of attracting $25 billion of FDI capital since October.
To fully capitalize on the FDI capital source in the new stage, the Ministry of Planning and Investment is drafting the foreign direct investment strategy for 2018-2023.
With the assistance from the World Bank, the FDI strategy drafts that Vietnam at this stage should focus on sectors having advantages, and those that foreign firms could bring more benefits to, rather than domestic firms.
Under the draft strategy, Vietnam should set out priority sectors for attracting FDI, such as those that needs increased value and competitiveness, including manufacturing (high-grade metals/minerals/chemicals/plastics and high-tech/electronic components); service (logistics and maintenance, repair and overhaul - MRO); agriculture (innovative agricultural products, high value such as rice, coffee, seafood); and travel (high-value tourism services).
In the short term, priority is to be given to industries with narrow opportunities for competition, such as production (automotive and transport equipment OEMs - Original Equipment Manufacturers and suppliers), and environmental technology (water conservation equipment, solar, wind).
In the medium term, priority should be given to sectors that create and develop skills, including manufacturing (pharmaceuticals and medical equipment), services (education and health services, financial services, financial technology (Fintech), information technology and intellectual services (accounting and design), according to the draft.
Thu Ha
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