09:07 | 14/06/2016 Investment
(VEN) - Foreign direct investment (FDI) soared in the first five months of this year both in terms of registered and disbursed capital and partners, according to the Foreign Investment Agency.
Vietnam received 907 new FDI projects with total registered capital of US$7.56 billion, plus 425 ongoing FDI projects increasing their capital by US$2.59 billion, pushing total new and supplementary FDI capital to US$10.159 billion, a 136.4 percent increase, compared with US$4.29 billion and 7.6 percent in the same period last year.
Disbursed FDI capital also increased 17.2 percent in these months reaching US$5.8 billion compared with US$4.95 billion a year ago.
Processing and manufacturing continued to receive the greatest attention from foreign investors. They have launched 398 new projects with total registered capital of US$6.61 billion accounting for 65.1 percent of total investment capital in the country so far this year.
According to the Ministry of Planning and Investment’s Central Institute of Economic Management Director Nguyen Dinh Cung, foreign investors are mostly involved in the processing and manufacturing sector. He believed this was a good sign as it would provide a basis for Vietnam to develop a modern industrial sector and to achieve the industrialization target by 2020.
However, Nguyen Dinh Cung underlined the need to carefully choose processing and manufacturing projects in order to attract good-quality, new-technology FDI projects and to positively affect domestic enterprises.
Among the 60 countries and territories investing in Vietnam, South Korea took the lead with total new and supplementary capital of US$3.42 billion accounting for 33.7 percent of total FDI capital in the country. Luxembourg ranked second with US$1.248 billion and 12.3 percent, followed by Singapore with US$907 million and 8.9 percent.
Changes in the top FDI list show that apart from Asian countries like South Korea and Singapore, European nations have begun increasing their investment in Vietnam. The fact that Luxembourg surged into the second place among the 60 FDI countries and territories marked increasing persity in FDI partners, particularly those from Europe, opening up opportunities to improve the efficiency and effectiveness of FDI capital in Vietnam.
However, most FDI capital went to major provinces and cities with advantages in terms of transport and labor such as Hanoi, Ho Chi Minh City and Dong Nai which have attracted a large number of FDI projects, while several provinces with disadvantageous economic and transport conditions found it difficult to attract investors. In consideration of this, it is necessary to make changes to bridge the pision between localities and help them grow together.
Exports from the foreign investment sector reached US$48.263 billion in the first five months of this year, a 7.7 percent increase from a year ago, while imports stood at US$39.155 billion, a 1.9 percent drop.