08:50 | 08/12/2016 Economy
(VEN) - While the disbursed foreign direct investment (FDI) capital is in a stable increase, newly registered FDI (including ongoing projects’ increased capital) is showing signs of slowing down. This is, however, not a big concern from experts’ view.
Invested FDI up 7.6 percent
According to the Ministry of Planning and Investment, in the first 10 months of 2016, FDI projects in Vietnam disbursed US$12.7 billion in capital, up 7.6 percent from the same period last year - the highest figure so far.
However, newly registered FDI was showing signs of slowing down. Since early this year, Vietnam has attracted 2,061 new FDI projects totaling almost US$12.27 billion in registered capital, equal to 98.7 percent of that in the same period of 2015. At the same time, 967 FDI projects registered to increase their capital by a total of almost US$5.35 billion, roughly 77.9 percent of that in the same period last year.
Vietnam Economic Association (VEA) Secretary General, Prof. Dr. Nguyen Quang Thai told the Vietnam Economic news that the newly registered and increased FDI capital, accounting for 91.3 percent of that in the same period last year, isn’t important because invested FDI is more significant, as it is something actually poured into the economy. Thai said that invested FDI has increased considerably since early this year, proving that Vietnam has attracted FDI businesses.
The RoK taking the lead
In the first 10 months of this year, Vietnam attracted investment from 65 countries and territories worldwide, with the Republic of Korea (RoK) taking the lead with US$5.62 billion in newly registered and increased capital (31.9 percent of all FDI capital that Vietnam attracted in the 10 months). It was followed by Japan with US$1.92 billion (10.9 percent), and Singapore with US$1.73 billion (9.8 percent).
According to the Ministry of Planning and Investment, most of FDI projects attracted since early this year come from the RoK. Major RoK projects included the US$1.5 billion LG Display Hai Phong and the US$550 million LG Innotek Hai Phong, among others.
In the first 10 months, 54 provinces and cities attracted foreign investment, with Hai Phong taking the lead and attracting US$2.73 billion (accounting for 15.5 percent of the country’s total) through 43 newly registered projects and 34 projects with increased capital. The Ministry of Planning and Investment said that Hai Phong gained the first ranking thanks to the Rok’s giant projects in the city.
According to the Ministry of Planning and Investment, FDI businesses have exported goods (including crude oil) worth a total of US$102.7 billion and imported commodities worth US$83.22 billion since early this year, up 8.1 and 1.9 percent from the same period in 2015, respectively. In the first 10 months of 2016, the FDI sector exported US$19.48 billion more than it imported.