Vietnam sees 12% rise in FDI spending


HÀ NỘI — Disbursement of foreign direct investment (FDI) surged to an estimated US$4.7 billion in the first four months, a year-on-year rise of 12 per cent, the General Statistics Office (GSO) reported.

The total FDI registered in the country in this period reached $6.88 billion, surging by a significant 85 per cent against the same period last year.Of the total, $5.08 billion came from 697 newly-licensed projects, representing a yearly increase of 90 per cent in capital and 56 per cent in the number of projects. The remainder was contributed by 314 already-operating projects that raised their level of capital by more than $1.8 billion.The manufacturing and processing sector attracted the lion’s share of FDI with over $5.2 billion, accounting for 76.2 per cent of the nation’s total FDI. The science and technology sector ranked second with $335 million, or 4.9 per cent, while the wholesale, retail trade, repair of motor vehicles and motorcycles sector came third with $243 million, or 3.5 per cent.Among 41 localities, the northern port city of Hải Phòng was the most attractive destination for foreign investors. The city attracted $1.59 billion in FDI, making up 31.3 per cent of the total FDI registered in the country in the first four months of the year. It was followed by the capital city with $596 million, or 12 per cent, and southern Bình Dương Province with $329 million, or 6.5 per cent.Other localities that showed positive FDI results included the northern province of Bắc Ninh with $310 million, equivalent to 6.1 per cent of the nation’s FDI, and southern Đồng Nai Province with $270 million, or 5.3 per cent.From January to April, 45 countries and territories invested in Việt Nam. South Korea remained the leading investor with over $2.4 billion, which was 49 per cent of the FDI pledged to the country. Singapore and Taiwan were the runners-up with $502 million, or 10 per cent, and $430 million, or 8.5 per cent, respectively.The country’s FDI attraction seemed to be well on track with predictions made earlier by several experts.Due to the opportunities and advantages resulting from free trade agreements (FTAs), Việt Nam will likely attract more foreign investment this year and in the future, the experts had said.Võ Trí Thành, deputy head of the Central Institute of Economic Management (CIEM), said the FTAs, the Trans Pacific Partnership (TPP) deal and the FTA between Việt Nam and the European Union (EU) will open great opportunities for Việt Nam to attract FDI.

If foreign investors come to Việt Nam for production and business, they can approach large markets that are member countries of the FTAs, Thành said.

Source: Vietnam News