FDI inflows remain impressive

08:05 | 09/05/2014 Investment

(VEN) - In the first four months of this year, newly registered and additional investment capital sharply declined compared to the same period last year. However, FDI disbursement and export-import activities strongly increased.

According to the Ministry of Planning and Investment’s Foreign Investment Agency, in the first four months of this year, FDI sector’s export turnover (including crude oil) reached an estimated US$30.35 billion, accounting for 66.3 percent of Vietnam’s total export turnover, an increase of 17.2 percent compared to the same period last year while its import turnover stood at US$26.25 billion, an increase of 18.2 percent compared to the same period last year, accounting for 58.3 percent of Vietnam’s total import turnover. As a result, the FDI sector achieved a trade surplus of US$4.09 billion. According to the Foreign Investment Agency’s assessment, export-import activities remained impressive in the first four months of this year in the context of the current economic difficulties.

The sector’s FDI disbursement in the first four months of this year reached US$4 billion, an increase of 6.7 percent compared to the same period last year. An increase in FDI disbursement proved that FDI inflows were actually put to use.

In addition to an increase in export-import turnover and FDI disbursement, newly registered and additional investment capital in the first four months of this year only stood at US$4.855 billion, equal to 59.1 percent compared to the same period a year ago. In the first four months of this year, Vietnam attracted 390 new FDI projects with a total registered capital of US$3.22 billion, equal to 65.4 percent compared to the same period last year. In addition, 140 FDI projects added its capital with a total additional capital of US$1.62 billion, equal to 49.7 percent compared to the same period last year.

In the first four months of 2013, although FDI disbursement only increased by 3.9 percent compared to the same period in 2012, Vietnam attracted a total investment capital of US$8.219 billion, an increase of 17 percent compared to the same period in 2012. In addition, in the first four months of 2013, newly registered and additional investment capital totaled US$4.873 billion and US$3.34 billion, an increase of 14.6 percent and 20.7 percent compared to the same period in 2012, respectively.

According to the Foreign Investment Agency, in the first four months of this year, newly registered and additional investment capital sharply declined compared to the same period last year as Vietnam did not attract large-scale FDI projects. In 2013, Vietnam attracted a series of large-scale FDI projects such as the US$2 billion project investing in Thai Nguyen Province by the Samsung Electronics and Japanese investor’s Nghi Son Petrochemical Refinery Complex project with a total additional capital of US$2.8 billion.

According to economists, although newly registered and additional investment capital in the first four months of this year only equaled to 59.1 percent compared to the same period last year, this year’s results would not be lower than 2013. The situation might change if Vietnam attracted large-scale FDI projects. The Petroleum Authority of Thailand (PTT) is planning to invest in Binh Dinh Province’s Nhon Hoi Economic Zone with estimated investment capital of US$27 billion. In addition, according to Vietnam’s Association of Foreign Invested Enterprises Deputy Chairman Nguyen Van Toan, the US’s Exxon Mobil Corporation is planning to invest in the electricity-gas project in Quang Ngai Province with a total capital of US$20 billion.

If the two FDI projects became a reality, the situation on attracting FDI capital might change./.

In the first four months of this year, Vietnam attracted a total investment capital of US$4.855 billion from 36 countries and territories in the world. In particular, the Republic of Korea (RoK) ranked first among countries and territories investing in Vietnam with an investment capital of US$1.12 billion, accounting for 23.1 percent of total investment capital, followed by Japan and Singapore.

By Nguyen Hoa

Theo ven.vn