Despite the impact of the Covid-19 pandemic, new foreign investment approvals in Vietnam reached some US$18.8 billion between January and July, inching down by a mild 6.9% year-on-year.
|An employee works at a foreign-invested enterprise in Vietnam. New foreign investment approvals in Vietnam reached some US$18.8 billion between January and July – PHOTO: HUNG LE|
Over the seven-month period, investors from as many as 104 countries and territories got nod to inject funds into fresh and operational projects in Vietnam, with Singapore taking the lead with over US$6.4 billion and making up 34.1% of the total, followed by South Korea.
In the past seven months, some 1,620 foreign direct investment (FDI) projects got investment certificates with total registered capital of US$9.5 billion, up US$1.2 billion year-on-year.
The rise in FDI capital was attributed to a massive project, the Bac Lieu liquefied natural gas-fired thermal power plant, with total registered capital of US$4 billion, according to the Ministry of Planning and Investment.
Apart from this, foreign investors registered an additional US$4.7 billion for 619 operational projects in the country, edging up US$1.3 billion year-on-year.
The upward capital adjustment of the southern petrochemical complex project in Ba Ria-Vung Tau Province and the Westlake urban center project contributed to the increase in the additional capital.
Meanwhile, foreign investment inflows through mergers and acquisitions plunged by US$3.9 billion to US$4.6 billion, pushing down the foreign investment approvals in Vietnam between January and July.
The processing and manufacturing industries attracted the largest investment of over US$8.9 billion, representing 47.6% of the total, according to the report. SGT
By fulfiling certain criteria, some foreign investors would receive special treatment, said Minister of Planning and Investment Nguyen Chi Dung.
Vietnam has a great opportunity to receive new FDI, but it has been warned of the ‘the other side of the coin’.