Maybank Kim Eng report notes that Vietnam's stability will see FDI remain on an upwards trajectory.
The Maybank Kim Eng (MBKE) securities company said it continues to be optimistic about the macro situation in Vietnam in its recent macro-economic report, especially foreign direct investment (FDI), which is maintaining its momentum and will be a factor driving growth this year.
Vietnam continues to receive plenty of FDI thanks to its economic, political, and social stability. FDI in 2015 was estimated at $14.5 billion, up 17.4 per cent against 2014 and the highest figure to date, contributing to the country’s impressive economic growth of 6.68 per cent.
In 2016 FDI will continue upwards, MBKE believes, with total registered capital in new projects and additional capital reaching $2.8 billion as at February 20, up 135 per cent compared to the same period last year. Capital in the first two months of the year was estimated at $1.5 billion, a 15.4 per cent increase year-on-year.
Processing and manufacturing continues to be most attractive destination for FDI, representing some 70 per cent of the total. Demand for expanding manufacturing will therefore grow, with factory construction benefiting a great deal from higher FDI.
MBKE also said that the Mekong Delta and the Red River Delta are still the most attractive locations for FDI.