Vietnam attracts over USD12bn in FDI in four months

• As of Apr 20, Vietnam attracted USD12.25bn in foreign direct investment (FDI), equivalent to 99.3% compared to the same period in 2020, according to the Ministry of Planning and Investment’s Foreign Investment Agency (FIA).
• The four-month figure shows the FDI inflow was slowing down, said the FIA.
• However, the agency noted the average size of newly-licensed projects and those registering to adjust their capital increased by less than USD7mn per project in comparison with the same period in 2020.
• The four-month period saw FDI projects disburse USD5.5bn, up 6.8% y/y, thanks to the recovery of production and business operations.
• Currently, Vietnam has 33,463 valid foreign investment projects with total registered capital of USD394.9bn. These projects disbursed USD238.36bn, or 60.4% of the total valid registered investment capital, FIA reported.
• FDI inflows to the country expanded by 18.5% to USD10.13bn in 1Q21, the FIA said.
• Of the figure, newly-registered capital reached USD7.2bn, up 30.6% y/y, while adjusted capital increased by 97.4% to USD2.1bn.
• Meanwhile, capital contributions and share purchases by foreign investors stood at more than USD1bn, down 57.8% y/y.
• The capital inflows cover 17 sectors, in which processing and manufacturing took the lead with USD5.2bn, accounting for 42.4% of the combined investment, followed by electricity generation and distribution with USD5.1bn. Property and retail sectors accounted for USD778mn and USD464mn, respectively.
• Among 67 countries and regions with newly licensed investment projects in Vietnam during the period, Singapore was the largest source of registered capital with USD4.8bn, accounting for 39.6% of the total registered capital, followed by Japan with USD2.5bn, accounting for 20.5% of the total registered capital and the Republic of Korea (RoK) with nearly USD1.5bn, accounting for 12.1% of the total registered capital.
• Foreign investors have invested in 53 provinces and cities nationwide, in which Long An Province took the lead with total registered investment capital of nearly USD3.3bn. Can Tho and HCM City were second and third with over USD1.3bn and USD1.1bn, respectively.
• Export turnover including crude oil is estimated at over USD80.6bn, up 38.7% y/y, accounting for 78% of the country’s export turnover. The import turnover is estimated at over USD66.2bn or an increase of 32.8% y/y.

External Link : https://vietnamnews.vn/economy/939939/viet-nam-attracts-over-12b-in-fdi-in-four-months.html