Viet Nam attracted US$21.93 billion in foreign direct investment (FDI) during the first seven months of this year, an increase of 52 per cent year-on-year, according to the latest Foreign Investment Agency statistics reported by the Vietnam News Service.
Of the nearly 24 billion dollar total, $12.92 billion came from 1,378 newly-licensed projects. This is a yearly increase of 48.7 per cent. An additional 677 already-operating projects have requested to top-up their capital by more than $5.87 billion which is a further 38.5 per cent year-on-year.
Foreign investors made 2,946 deals in contributing capital to businesses and buying shares of Vietnamese businesses with total value of $3.12 billion. This figured rocketed by 109.7 per cent compared with the same period in 2016.
Exports of foreign-invested enterprises (excluding crude oil) were also strongly higher totaling near $83.05 billion, up 20.3 per cent over last year. The foreign-invested segment accounted for 72 per cent of the country’s total export turnover.
Imports by foreign-invested enterprises reached $71.35 billion, up 28.1 per cent and accounting for 60.3 per cent of the total import turnover of the country.
Manufacturing and processing industries continued to be the top sector, receiving $10.83 billion of FDI, nearly 50% of the total registered FDI. This was followed by the electricity production and distribution sector, with total investment capital of $5.25 billion, accounting for 23.98 per cent of the total FDI. From there the totals fall off dramatically, with the mining sector in third place, with $1.28 billion, or 5.86 per cent of the total FDI.
South Korea continued leading the pack in terms of investors
with $5.62 billion. This was 25.63 per cent of the FDI pledged to the country. Japan was close behind with $5.46 billion, or 24.92 per cent of the FDI. Singapore a much smaller economy was in third place with $3.8 billion, accounting for 17.3 per cent of the total FDI.
Northern provinces were the larger recipients of this FDI although much of this was represented by large projects which tend to go to the North as the central government is often willing to be more generous in its terms for Northern projects to help balance the South’s more commercial investment environment.