14:33 | 22/09/2017 Economy
(VEN) - According to data compiled by the Ministry of Planning and Investment’s Foreign Investment Agency, in the first eight months of the year, Vietnam attracted US$23.36 billion in foreign direct investment (FDI), an increase of 45.1 percent compared to the same period last year.
Total capital contribution makes impression
FDI inflows to Vietnam in the first eight months of the year were boosted by newly registered and additional capital, as well as investment in the form of capital contribution and share purchasing.
Specifically, the country attracted 1,624 new FDI projects with total registered capital of US$13.45 billion, an increase of 37.4 percent compared to a year ago, while 773 projects added capital totaling US$6.4 billion, a year-on-year increase of 40.2 percent. In addition, 3,374 foreign investors visited the country in the first eight months of the year, buying shares that resulted in total capital contribution of US$3.5 billion. This represents a doubling (101.3 percent increase) of last year’s first eight month figure.
A strong increase in total capital contribution in the first eight months of the year was attributed to the process of equitization of state-owned enterprises, which lures foreign capital into Vietnam.
Forecast of US$30 billion
Nguyen Mai, chairman of the Vietnam Association of Foreign-Invested Enterprises, said this year’s FDI could reach US$30 billion.
Phan Huu Thang, former director of the Foreign Investment Agency, said this forecast is quite feasible because many FDI projects of large corporations are preparing to be licensed in Vietnam.
Among the 18 sectors receiving FDI capital in the first eight months of the year, the processing and manufacturing sector continued to attract the greatest interest with US$11.69 billion, accounting for 50 percent of total capital.
A delegation of the Ministry of Planning and Investment led by Minister Nguyen Chi Dung travelled to the Republic of Korea on September 5-8 and met with leading business groups, such as Samsung, LG, Hyundai Motor and SK. These corporations are investing in Vietnam and promising to continue to expand their investment.
In addition, nearly 70 percent of Japanese companies say they will expand their investment in Vietnam in 2017, creating an important basis for higher FDI inflows.
According to the Ministry of Planning and Investment, FDI disbursement in the first eight months of the year also rose, reaching US$10.3 billion, up 5.1 percent over the same period in 2016. Disbursement could stand at US$18 billion by the end of the year.