Large projects bolster total capital, with processing and manufacturing attracting 72%, or $2.9 billion.
The latest report from the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment (MPI) put registered foreign direct investment (FDI) capital in the first quarter at $4.03 billion, an increase of 119 per cent compared to the first quarter of 2015.
Newly-registered capital was $2.7 billion, up 225 per cent year-on-year, with additional capital to existing projects reaching $1.29 billion, up 207 per cent. New projects and those adding capital total 676, or twice as many as in the first quarter of last year.
The sharp increase in FDI was due to many large-scale projects being licensed in the opening months of the year, including the Ocean Paper JSC in the Mekong Delta’s Tien Giang province, with total capital of $220 million from Taiwanese investors and specializing in manufacturing all types of paper, such as Duplex, Kcraf, and household paper. A lottery project between Berjaya Corporation Berhad Co., Ltd of Malaysia and a Vietnamese lottery company was also licensed in Hanoi, with total investment capital of $210.58 million, while a project producing semi-finished sports shoes in the Mekong Delta’s Can Tho city, with capital of $171.4 million coming from a South Korean investor, also receive the green light.
Foreign investors are involved in 19 sectors in Vietnam’s economy. In the first quarter processing and manufacturing sector continued to lead the way with 216 projects worth a total of $2.9 billion, accounting for 72.2 per cent of total FDI capital, followed by real estate with eleven projects worth $239.8 million, or 6 per cent of total capital.
South Korean enterprises became the majority in registering new projects in Vietnam in the first quarter, with $888.6 million in capital, or 22 per cent of all newly-registered capital. Following were Singaporean and Taiwanese enterprises with capital of $554 million and $465.6 million, respectively.
By province, southern Dong Nai attracted the most FDI, with an impressive $585 million in 60 projects, followed by northern Bac Ninh and southern Binh Duong provinces with capital of $398 million and $371 million, respectively.