Capital contributions and share purchases by foreign investors up in first ten months while new projects and capital fall, MPI report shows.
Capital contributions and share purchases by foreign investors in the first ten months of this year increased 70.5 per cent compared to the same period last year, with capital contributions standing at $10.8 billion from 7,509 transactions, according to the latest report from the Ministry of Planning and Investment (MPI) released on October 24.
The increase was largely due to just a few projects. A smart city project in Hai Boi, Dong Anh district, Hanoi, received total investment of $4.14 billion from a Japanese investor, while a polypropylene manufacturing plant and liquefied petroleum gas warehouse project in southern Ba Ria Vung Tau province, with total investment of $1.2 billion, was invested in by a South Korean company.
The report showed that total newly-registered and additional capital and capital contributions and shares purchased by foreign investors stood at $26.16 billion in the first ten months, up 4.3 per cent against the same period of 2018.
Meanwhile, there were 3,094 new projects granted investment licenses in the period, with total newly-registered capital of nearly $12.83 billion, down 14.6 per cent year-on-year, while 1,145 projects added capital to the tune of $5.4 billion, down 16.4 per cent against the same period of 2018.
FDI projects disbursed $16.2 billion in the first ten months, up 7.4 per cent.
Nineteen fields received investment from foreign investors, in which manufacturing and processing attracted much attention, with total capital of nearly $18.83 billion, accounting for 68.1 per cent. Real estate ranked second, with $2.98 billion, accounting for 10.2 per cent, while wholesale and retail was third, with $1.97 billion, or 6.8 per cent.
There were 107 countries and territories with new investment projects. South Korea led the way, with nearly $2.7 billion, accounting for 21 per cent, followed by China with $2.1 billion and Singapore with $1.84 billion, accounting for 16.3 per cent and 7.9 per cent, respectively.
Sixty cities and provinces received investment in the period, in which Hanoi attracted the most, with more than $6.61 billion, accounting for 22.7 per cent. Ho Chi Minh City followed, with more than $4.96 billion, accounting for 17 per cent, then southern Binh Duong province, with $2.6 billion, or 9.09 per cent.
Exports by the foreign-invested sector (including crude oil) in the first ten months were worth $150.4 billion, up 3.9 per cent year-on-year. Exports excluding crude oil stood at $148.7 billion, up 4.1 per cent.
Imports by the FDI sector were $122.1 billion, up 4.4 per cent against the same period of 2018. The FDI sector therefore recorded a trade surplus in the first ten months of $28.3 billion including crude oil and $26.6 billion excluding crude oil. VN Economic Times
News and World Report of the US has ranked Vietnam eighth among 29 best economies to invest in, and first among the Association of Southeast Asian Nations (ASEAN) in the list.
Professor Tran Anh Tuan, a member of the Vietnam National Assembly's Economic Commission, talks to Vietnam Investment Review about how to attract more foreign investment into the country.