Figure for first eleven months only $1.8 billion short of target for year as a whole.
Vietnam has attracted $20.22 billion in foreign direct investment (FDI) capital this year, including newly-registered and additional capital, a 16.7 per cent increase compared with the same period last year, according to the figures from the General Statistics Office (GSO), and fast approaching the target of $22 billion for the year as a whole.
Mr. Nguyen Van Toan, Deputy Chairman of the Vietnam Association of Foreign Investment Enterprises, said that in addition to political stability, low labor costs, and a large consumer market, the improving investment environment and the amended Law on Investment and Law on Enterprise have created trust among foreign investors in Vietnam.
Promoting divestment from State-owned enterprises and the introduction of legal provisions on increasing the ownership limit on foreign investors in domestic businesses are also being felt in the country’s investment environment. Given these factors Mr. Toan believes the $22 billion target is entirely within reach.
As at November 20 Vietnam had attracted 1,855 projects with total investment capital of $13.55 billion, up 30 per cent in number and 1.1 per cent in capital year-on-year. At the same time 629 projects increased capital their capital, by a total of $6.67 billion.
The trade surplus recorded by the FDI sector is growing. Export turnover in November (including crude oil) reached $10.12 billion, similar to October's result, and $105.1 billion in the first eleven months of this year, a 13.5 per cent increase over the same period last year.
Import turnover in November was $8.6 billion, up 4.5 per cent against October, contributing to total turnover of $90.2 billion for the first eleven months, 18.1 per cent higher year-on-year.
The FDI sector therefore recorded a trade surplus of $15 billion, while the domestic sector has seen a trade deficit of $18.8 billon.
Manufacturing and processing still led the way in FDI attraction in the first eleven months, followed by power, water, gas and real estate.
FDI by sector, first eleven months
Forty-seven cities and provinces welcomed new FDI projects in the first eleven months. Ho Chi Minh City attracted the most, followed by Tra Vinh, Dong Nai, Binh Duong, Hanoi, Hai Phong, Tay Ninh, and Vinh Phuc.
FDI by province, first eleven months
Among the 56 countries and territories with licensed investment projects in Vietnam in the first eleven months, South Korea was the largest investor, leading Malaysia, the UK, Japan, Taiwan, and Singapore.
FDI by country, first eleven months