FDI capital declines in first four months

10:28 | 14/06/2018 Investment

(VEN) - Vietnam attracted foreign direct investment (FDI) of US$8.06 billion in the first four months of 2018, 76.1 percent of the total accrued in the same period in 2017. According to the Foreign Investment Agency under the Ministry of Planning and Investment, despite the drop in registered FDI capital, disbursement continued a positive trend in the first four months of 2018.

fdi capital declines in first four months
Ho Chi Minh City is the top recipient of registered FDI capital

Foreign investors directed their capital to 17 sectors during the first four months. The manufacturing and processing sector attracted the most FDI, with US$4.52 billion, accounting for 56.1 percent of the total. The real estate sector was second, with investment capital of US$807.5 million, accounting for 10 percent of the total; and the wholesale and retail sectors, with registered capital of US$779 million, accounted for 9.7 percent of the total.

Some 82 countries and territories invested in projects in Vietnam in the first four months. The Republic of Korea (RoK) topped the list, with an investment of US$2.32 billion, accounting for 28.7 percent of the total; followed by Japan with registered capital of nearly US$1.29 billion, accounting for 16 percent of the total; and Singapore with registered investment of US$808 million, accounting for 10 percent.

Ho Chi Minh City attracted the largest FDI in the first four months - US$1.92 billion, accounting for 23.8 percent of the total. It was followed by Hai Phong with registered capital of US$1.03 billion, accounting for 12.8 percent of the total; and Hanoi with registered capital of US$746 million, accounting for 9.25 percent.

By April 20, the country had 25,524 valid FDI projects, with total registered capital of US$321.25 billion. The manufacturing and processing sector had attracted US$186.68 billion, accounting for 58.1 percent of the total. The RoK ranked first, with investments of US$59.2 billion. Ho Chi Minh City was the top recipient of registered FDI capital. According to Foreign Investment Agency under the Ministry of Planning and Investment, the decline in registered FDI capital in the first four months of the year was due to an absence of large projects.

Once the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) enters into force, it will

provide opportunities for Vietnam to attract more FDI for areas and fields that the country seeks to develop. The

CPTPP, with the participation of major Pacific Rim countries, will provide an opportunity for Vietnam to achieve its

objective of selecting high-quality FDI projects.

Minh Anh