Vietnam’s outward investment rebounds

Outward investments, which fell for a short time because of Covid-19, resumed again after the social distancing policy ended.

According to the Ministry of Planning and Investment (MPI), 15 outward investment projects were licensed in May.

Vietnam’s outward investment rebounds

Two existing projects asked for permission to increase their investment capital. The total registered capital of the projects was $111.76 million, an increase of 3.3 times compared with the same period last year.

In the first four months of the year, the total outward investment capital was $69 million, just 46.1 percent of the same period last year.

The sharp increase in investments in May was attributed to the presence of a large project, $91.5 million, registered by Masan Tungsten Company in Germany. The investor is a subsidiary of Masan Resources. The company has wrapped up the purchase of the tungsten business platform of H.C. Starck Group GmbH.

The increase in investments in May offset the low investments in the first four months of the year.

In the last five months, the total outward investment capital reached $180.7 million, including $162 million worth of newly registered projects.

Analysts believe that when the pandemic is contained all over the world, Vietnam’s outward investments will continue to increase.

They said the openness of the legal framework has encouraged businesses to make outward investments. Under Decree 83/2015, outward investors don’t have to obtain an investment certificate, but just need to fulfill procedures to get an investment registration certificate.

The promulgation of Circular 03/2018 standardizes the legal procedures for outward investment activities, which has helped state management agencies improve their management over projects outside Vietnam and create favorable conditions for investors to do business overseas.

The promulgation of Circular 03/2018 standardizes the legal procedures for outward investment activities, which has helped state management agencies improve their management over projects outside Vietnam and create favorable conditions for investors to do business overseas.

 

Analysts noted that there is a growing tendency of Vietnamese investors to register investments in developed countries.

Some years ago, Vietnamese businesses mostly made investments in neighboring markets, including Laos, Cambodia and Myanmar, or in underdeveloped countries such as in Africa. But now they tend to seek greater opportunities in developed economies. The investment by Masan Tungsten is an example.

MPI reported that Vietnam’s businesses poured capital into 18 economies in the last five months. Germany was at the top, with $92.61 million, which accounted for 51.3 percent of total investment capital. The US ranked second with $21.72 million, or 12 percent. The next positions belonged to Myanmar, Singapore and Cambodia.

Instead of pouring capital into agriculture, forestry, mining or afforestation as they did previously, Vietnamese investors now invest in business fields which promise higher added value. 

Linh Ha

Vietnam's FDI inflows to increase

Vietnam's FDI inflows to increase

A new wave of foreign direct investment driven by global uncertainty such as the US-China trade war and the COVID-19 pandemic is imminent in Vietnam, 

Vietnam lures US$6 billion FDI into industrial parks

Vietnam lures US$6 billion FDI into industrial parks

Nearly US$6 billion in foreign direct investment was poured into Viet Nam’s industrial parks (IPs), processing zones and economic zones (Ezs) in the first half of the year, according to the Ministry of Planning and Investment (MPI).  

 
 

Other News

.
Ministry launches PayGov to upgrade national public portal
Ministry launches PayGov to upgrade national public portal
BUSINESSicon  26/07/2020 

The Ministry of Information and Communications (MIC) launched a national payment support gateway (PayGov) yesterday in Ha Noi in the latest move to boost e-government in Vietnam.

Japanese firms choose Viet Nam for production expansion
Japanese firms choose Viet Nam for production expansion
BUSINESSicon  26/07/2020 

Fifteen Japanese firms chose Vietnam as the destination for their production expansion within the Japanese government’s programme to support Japanese firms to diversify their value chains in foreign countries, according to JETRO.

Vietnam Banks Association urges MIC to reduce telecommunication charges
Vietnam Banks Association urges MIC to reduce telecommunication charges
BUSINESSicon  26/07/2020 

The Vietnam Banks Association has just sent a dispatch to propose the Ministry of Information and Communications lower charges for banking services via SMS.

R&D spending key to join global supply chain: executives
R&D spending key to join global supply chain: executives
BUSINESSicon  25/07/2020 

Challenges will overwhelm opportunities for Vietnamese part suppliers if they are unable to find ways to upgrade technology and meet international production standards, business executives said on July 24.

Vietnam likely to export 6.7 million tonnes of rice this year
Vietnam likely to export 6.7 million tonnes of rice this year
BUSINESSicon  25/07/2020 

Vietnam is likely to reach its rice export target of 6.7 million tonnes this year thanks to favourable market conditions and high global demand, according to the Ministry of Agriculture and Rural Development.

Ministries disagree on legalizing condotels as houses
Ministries disagree on legalizing condotels as houses
BUSINESSicon  26/07/2020 

The Ministry of Public Security (MPS) does not want condotels converted into houses and does not want to grant ‘red books’ (land-use right certificates) to all apartments.

Local retailers closing shops because of Covid-19
Local retailers closing shops because of Covid-19
BUSINESSicon  25/07/2020 

Many retailers have had to close shops and give back retail premises to landlords because of poor patronage and a dramatic drop in sales.

Standard Chartered Bank forecasts Vietnam’s 2020 growth at 3 percent
Standard Chartered Bank forecasts Vietnam’s 2020 growth at 3 percent
BUSINESSicon  24/07/2020 

Standard Chartered Bank expects Vietnam’s growth to slow to a multi-year low of 3 percent this year on soft external demand, with external headwinds set to offset domestic outperformance.

HCM City sets growth target of 5 percent for 2020
HCM City sets growth target of 5 percent for 2020
BUSINESSicon  24/07/2020 

The chairman of HCM City People’s Committee has urged agencies to develop solutions to support enterprises and local residents affected by the COVID-19 pandemic as part of its effort to revive business activities

Officials urge hastened issuance of legal documents to implement FTAs
Officials urge hastened issuance of legal documents to implement FTAs
BUSINESSicon  24/07/2020 

Vietnam must hasten the process of issuing legal documents and institutional reform to implement free trade agreements (FTAs) and take advantage of these trade deals to boost exports, officials have said.

Vietnamese firms increase overseas investment
Vietnamese firms increase overseas investment
BUSINESSicon  24/07/2020 

Vietnamese firms have been increasing their overseas investments in recent years in an effort to expand their global reach.

Economic recovery faces uphill battle
Economic recovery faces uphill battle
BUSINESSicon  24/07/2020 

The aftermath of the global health crisis may drive Vietnam to a lower-than-expected economic growth landscape, challenging the government’s efforts to revive the economy and restore production.

Vietnam's oil sector open on back of new eased FOL cap
Vietnam's oil sector open on back of new eased FOL cap
BUSINESSicon  24/07/2020 

Even if the latest proposal for international investors to be able to own up to 35 per cent of Vietnamese oil firms comes true, it may still not be smooth sailing for foreign groups to step up in the market.

Rise in overseas interest sparks takeover concerns
Rise in overseas interest sparks takeover concerns
BUSINESSicon  24/07/2020 

In light of its safe and stable investment environment despite the ongoing pandemic, Vietnam has emerged as a promising destination for cross-border mergers and acquisitions 

VN rubber companies report lower earnings amid falling rubber prices
VN rubber companies report lower earnings amid falling rubber prices
BUSINESSicon  24/07/2020 

Rubber producers reported poor second-quarter business results due to decreasing rubber prices, eyeing industrial zone development.

Will SCIC invest in Vietnam Airlines?
Will SCIC invest in Vietnam Airlines?
BUSINESSicon  24/07/2020 

The attempt by the government to rescue Vietnam Airlines with investment capital of VND12 trillion raises a question about the equality between state-owned and private enterprises.

Small cashew nut processors shut down as raw material becomes too expensive
Small cashew nut processors shut down as raw material becomes too expensive
BUSINESSicon  25/07/2020 

Vietnam’s cashew industry has suffered heavily as raw material prices have increased sharply, while the finished product prices have decreased.

Vietnam plans resumption of international flights
Vietnam plans resumption of international flights
BUSINESSicon  24/07/2020 

The Civil Aviation Authority of Vietnam (CAAV) has submitted to the Ministry of Transport (MOT) a plan to resume international air routes.

Ministry proposes loosening conditions to make credit package more accessible
Ministry proposes loosening conditions to make credit package more accessible
BUSINESSicon  24/07/2020 

The deadline for the disbursement of the government's VND62 trillion support package is nearing, but the number of people who can access the package remains modest.

HCM City proposes PM to bring breakthrough to key projects
HCM City proposes PM to bring breakthrough to key projects
BUSINESSicon  24/07/2020 

Despite outstanding disbursement of public investment among Vietnam's localities, HCM City has encountered many difficulties that need to be resolved to accelerate the disbursement of public investment

 
 
 
Leave your comment on an article

OR QUICK LOGIN