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FDI at over $14 billion in 8M

Released at: 08:26, 26/08/2016

FDI at over $14 billion in 8M

Photo: Viet Tuan

Registered capital increases nearly 25% year-on-year while disbursed capital up nearly 9%.

by Quynh Nguyen

As at August 20 there were 1,619 new FDI projects in Vietnam with total investment of $9.79 billion, up 24.3 per cent year-on-year in capital, according to the Foreign Investment Agency (FIA).

The latest report from FIA released on August 23 also showed that disbursed capital in existing FDI projects stood at $9.8 billion, up 8.9 per cent year-on-year.

There were also 770 existing projects adding $4.57 billion in capital, equal to 83.7 per cent of the yearly figure to August 20, 2015.

Total new and added capital in the first eight months therefore reached $14.3 billion, an increase of 7.7 per cent year-on-year.

Increases in capital and disbursement were slower compared to the period from June 20 to July 20. If no large-scale projects are registered in the remaining months of the year FDI capital will not have grown at the same levels seen earlier in the year.

There were dozens of large-scale projects granted investment licenses last year, such as the Empire City real estate project with capital of $1.2 billion in District 2, Ho Chi Minh City, the Cheng Loong Binh Duong Paper Plant in southern Binh Duong province with $1 billion, and the Duyen Hai 2 Thermal Power Plant with $2.4 billion in the Mekong Delta’s Tra Vinh province, together with the Samsung SEHC project increasing its capital by $600 million.

FIA has forecast that FDI capital for the year as a whole will increase 10-15 per cent compared to last year, with disbursed capital at a predicted $15 billion.

Foreign investors invested in 19 sectors in the first eight months. Manufacturing and processing attracted the most, of more than $10.53 billion, accounting for 73 per cent.

The real estate sector followed with $836 million, or 6 per cent, then science and technology with $622.3 million, or 4.3 per cent.

From January to August 20, South Korea continued to be Vietnam’s leading foreign investor, with more than $4.8 billion, or 33.4 per cent of total registered FDI. Singapore followed, with $1.68 billion, or 12 per cent, then Japan with $1.46 billion, or 10 per cent.

The northern port city of Hai Phong received the largest FDI capital, of more than $2 billion, followed by the two southern provinces of Dong Nai and Binh Duong with $1.59 billion and $1.38 billion, respectively.

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