Foreign investment on the rise in Vietnam

Monday, 2017-08-28 17:42:06
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Workers operating weaving equipment at the TNG Investment and Trading Jsc. manufacturing plant in Thai Nguyen province (Photo: VNA)
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NDO/VNA - Foreign investment is looking up, as the total capital pledged for investment in the country, up to August 20, was almost equal to that for the entire of 2016.

The reports from the Foreign Investment Agency (FIA) showed that foreign investors had registered to invest US$23.36 billion in Vietnam since the beginning of this year until August 20, up 45.1% annually.

Last year, Vietnam reported a total registered capital of US$24.3 billion from foreign investors, up 7.1% against the previous year.

From the amount pledged this year, US$13.45 billion has come from 1,624 new licensed projects, a 37.4% rise; and US$6.4 billion in additional capital for 773 existing projects, up 40.2%. The remaining has come from capital contribution and the share purchase of foreign investors.

According to the agency, the disbursement of the capital in the first eight months of this year by foreign investors has also been positive, with a growth rate of 5.1% annually, up to US$10.3 billion.

In the period between January and August, foreign investors poured capital into 18 industries, of which the manufacturing and processing industry has been the most attractive destination with a total capital of US$11.69 billion, equal to some 50% of the country’s total registered capital. However, the ratio was still lower than that in the previous years, when the industry often attracted 70% of the country’s total registered capital.

This was followed by the power production and trading industry with US$5.36 billion, accounting for 22.9% of the country’s total registered capital.

The mining industry ranked third, as its registered capital rose 5.5% to US$1.28 billion.

The first eight months of the year saw 98 countries and territories wanting to invest in Vietnam, of which the Republic of Korea topped the list with a registered capital of more than US$6 billion, accounting for 25.7% of the country’s total registered capital. Japan and Singapore followed with US$5.74 billion and US$3.92 billion, making up 24.58% and 16.8% of the total capital, respectively.

The business performance of the foreign firms was also optimistic during the period. Their exports, including crude oil, rose 15.5% to US$95.66 billion, accounting for 71.6% of the country’s total export revenue during the period.

With an import value of US$81.38 billion, foreign firms gained a trade surplus of US$14.28 billion during the period.