09:00 | 03/12/2018 Investment
(VEN) - In the first 10 months of 2018, Vietnam attracted US$27.9 billion in foreign direct investment (FDI) capital, equal to 98.8 percent of the sum invested in the same period last year, according to the latest data of the Ministry of Planning and Investment’s Foreign Investment Agency (FIA).
Invested capital of US$15.1 billion
The FDI includes US$15 billion in registered capital of 2,458 newly licensed projects (92.2 percent of that in the same period in 2017), US$6.5 billion in increased capital of 954 existing projects (90 percent of that in the same period last year), and US$6.3 billion worth of shares and capital bought and contributed by foreign investors (up 35.8 percent).
FDI projects have already invested US$15.1 billion so far this year, up 6.3 percent from the same period of 2017. In the first 10 months, FDI businesses exported goods worth US$143.4 billion (including crude oil exports) and US$141.6 billion (excluding crude oil exports), up 13.2 and 13.9 percent from the same period last year and accounting for almost 72.2 and 70.8 percent of the country’s total, respectively. They imported goods worth US$116.3 billion, up 11.7 percent over the same period in 2017 and accounting for 60 percent of the country’s total. They exported US$27.1 billion (including crude oil exports) and US$25.2 billion (excluding crude oil) more than they imported in the first 10 months.
Manufacturing and processing was the biggest FDI attractor with US$13.2 billion (accounting for 47.5 percent of the total), followed by the real estate industry with US$5.7 billion (20.4 percent), and the wholesale and retail sector with US$2.3 billion (8.5 percent).
Hanoi - the biggest FDI draw
According to FIA, Hanoi still drew the most FDI with US$6.15 billion, accounting for 22 percent of the country’s total. Nguyen Manh Quyen, Director of the Hanoi Department of Planning and Investment said FDI that the city attracted in the first 10 months of 2018 is 2.8 times that in the same period last year. It includes US$5.18 billion in 492 newly licensed projects, US$727 million in increased capital of 140 existing projects, and about US$440 million worth of shares and capital bought and contributed by 543 foreign investors.
Ho Chi Minh City ranked second with US$4.6 billion, representing 16.5 percent of the country’s total, followed by Ba Ria-Vung Tau Province with US$2.4 billion (8.8 percent).
Many large investment agreements were signed this year, including a memorandum of understanding on investment cooperation between the Hanoi People’s Committee and the Jiayuan International Group to build a software park and an inland container depot (ICD) at a total cost of US$1.5 billion in Hanoi, a certificate for the Lotte Rental Co., Ltd to increase registered capital by US$72 million, and an investment certificate for the GA Power Company to build the Huong Son Solarpark and Cam Xuyen solar power plant at a total cost of US$46.6 million.
Japan continued to rank first among the 105 countries and territories investing in Vietnam with US$7.6 billion, accounting for 27.5 percent of all FDI capital in Vietnam, followed by the Republic of Korea and Singapore.