09:03 | 20/09/2015 Investment
(VEN) - The Ministry of Planning and Investment has set the goal to attract about US$23 billion in foreign direct investment (FDI) capital this year. According to the Foreign Investment Agency’s report on FDI in the first eight months of this year, the FDI sector is nearing the government’s capital attraction target.
FDI attraction in the first eight months grew by 30.4 percent from a year ago
FDI attraction up by 30.4 percent
According to the Ministry of Planning and Investment’s Foreign Investment Agency, Vietnam has attracted US$13.33 billion in new and supplementary FDI so far this year, an increase of 30.4 percent from a year ago. This includes US$7.8 billion from July to August compared with US$5.5 billion in the first six months of the year. Experts said if the growth momentum continues until the end of the year, the Ministry of Planning and Investment’s goal of US$23 billion for this year will be reached.
FDI attraction increased in the first eight months of this year in terms of new, supplementary and disbursed capital. Specifically, newly-registered FDI capital reached US$7.87 billion in eight months, an 8.7 percent increase from a year ago; supplementary FDI capital US$5.46 billion, an 82.2 percent increase; and disbursed FDI capital US$8.5 billion, a 7.6 percent increase, respectively. The 82.3 percent increase in supplementary FDI capital shows that foreign investors in Vietnam have placed great hope on the Vietnamese business environment in the future, said Nguyen Tu Anh, the head of the Macro Policy Department under the Ministry of Planning and Investment’s Central Institute for Economic Management.
Further improving the investment ambience
The processing and manufacturing sector received the greatest attention from foreign investors in the first eight months of this year attracting US$10.35 billion accounting for 77.7 percent of total investment capital. It was followed by the real estate sector with US$1.82 billion and 13.7 percent, respectively. The wholesale and retail sector took third place with US$311.08 million and 2.5 percent, respectively.
So far this year, 55 countries and territories have invested in Vietnam, of which the Republic of Korea led with US$5.26 billion accounting for 39.5 percent of total FDI in the first eight months of this year. The UK took second place with US$1.25 billion and 9.39 percent, and British Virgin Islands third place, US$973.6 million and 7.3 percent, respectively. When compared with the same period last year, apart from old investors such as the Republic of Korea, Japan and Hong Kong-China, several European countries including the UK had strongly invested in the country in the first months of the year.
Experts said that the growth resulted from Vietnam’s current preparation for conclusion of the EU-Vietnam Free Trade Agreement (EVFTA) which would offer great opportunities for Vietnam to attract FDI from Europe. To really attract European investors in the near future, Vietnam needs to further improve the investment environment in an open and transparent manner.
Exports from the FDI sector, including crude oil, reached US$74.6 billion in the first eight months of this year, a 14.7 percent increase from a year ago. Imports hit US$65.22 billion, a 23.2 percent increase accounting for an export surplus of US$9.38 billion.