Figure in first month of the year nearly double the amount in January 2015.
Foreign direct investment (FDI) in January reached $1.33 billion, an increase of 101 per cent against January 2015, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.
There were 127 new projects with $1.011 billion in investment as at January 20; 157.9 per cent higher year-on-year.
There were a number of projects with investment in the hundreds of millions of dollars.
Malaysia’s Berjaya Corp Bhd (BCorp) was recently granted an investment license from the Hanoi Department of Planning and Investment to operate a nationwide computerized lottery in Vietnam. With investment estimated of around $210 million the project will be carried out by an indirect subsidiary of BCorp, the Berjaya Gia Thinh Investment Technology JSC (Berjaya GTI).
Singapore's Maple Co Ltd also received an investment license to build a $110 million garment factory at the Vietnam-Singapore Industrial Park in the northern province of Bac Ninh, while New Wing Interconnect Technology announced it would invest $100 million in an audiphones plant in northern Bac Giang province.
Fifty-six projects increased their capital, by a total of $323.41 million; 19.2 per cent higher than in January 2015.
Sixteen fields received FDI, with the manufacturing and processing industry attracting the most interest from foreign investors, with 58 new projects and new and additional capital of $905.14 million, accounting for 67.8 per cent of all new and additional capital in January.
Entertainment and arts ranked second, with $210.58 million, accounting for 15.7 per cent of total capital, followed by electricity production and supply with $59.22 million, accounting for 4.4 per cent of new and additional capital in the month.
FDI in Vietnam by sector, Jan 2016
Of the 24 countries and territories investing in Vietnam, Singapore led the way in newly-registered and additional capital with $295.47 million, accounting for 22.1 per cent of the total.
Malaysia ranked second, with new and additional capital of $243.57 million, or 18.2 per cent of the total, followed by China, with a total of $179.51 million, or 13.4 per cent.
Among the 29 cities and provinces that attracted FDI in January, Hanoi was the most popular destination, with 15 new projects and seven that added to their capital, totaling $243.51 million and accounting for 18.2 per cent of all FDI in the country.
Dong Nai followed, with $183 million in new and additional capital, or 13.7 per cent, then Ho Chi Minh City with $163.43 million, accounting for 12.2 per cent of the total.
According to the FIA, $800 million in FDI was disbursed as at January 20, an increase of 23.1 per cent year-on-year. Exports by FDI enterprises (including crude oil) reached $9.74 billion in the month, or 3.2 per cent more than last January and accounting for 70.6 per cent of total export turnover. Imports by FDI enterprises totaled $8.15 billion, equal to 98.8 per cent year-on-year and accounting for 58.2 per cent of all import turnover.
With positive signs in attracting FDI in the first month of 2016 there are expectations about a breakthrough in FDI attraction during the year, according to insiders.
Vietnam possesses major advantages in attracting investment capital from foreign investors in 2016, including its further integration into the global economy, a stable macro-economy, an abundant workforce, cheap labor costs, and high purchasing power.
There are significant economic bottlenecks that limit FDI flows into Vietnam, however, including legal enforceability, incomplete infrastructure, and corruption. To attract more FDI such obstacles need to be removed, insiders added.