10:44 | 29/02/2016 Economy
(VEN) - Foreign direct investment (FDI) attraction strongly increased in January 2016 compared to a year ago, showing positive signs in terms of FDI inflows.
The manufacturing and processing industry took the lead in terms of FDI attraction in January
According to the Ministry of Planning and Investment’s Foreign Investment Agency, the country attracted 127 FDI projects with total registered capital of US$1.011 billion in January, an increase of 157.9 percent compared to the same month last year. In addition, 56 projects added more capital with total amount of US$323.41 million, an increase of 19.2 percent compared to a year ago. As a result, total registered and additional FDI reached US$1.334 billion, a year-on-year increase of 101.2 percent.
FDI disbursement stood at US$800 million in January, an increase of 23.1 percent compared to the same month last year. This figure was highly appreciated as FDI disbursement remains low in the beginning months of the year.
According to the Ministry of Planning and Investment, an increase in FDI attraction and disbursement in January showed positive signs in terms of FDI inflows. Experts said that in addition to improved business environment, the participation of Vietnam in free trade agreements was a main reason for an increase in FDI attraction and disbursement.
As many as 24 countries and territories had investment projects in Vietnam in January. Singapore took the lead with total registered and additional capital of US$295.47 million, accounting for 22.1 percent of total FDI attraction in Vietnam, followed by Malaysia US$234.57 million and China US$179.51 million. Foreign investors invested in 29 cities and provinces throughout the country in January. Hanoi ranked first in terms of FDI attraction with US$243.51 million, followed by Dong Nai and Ho Chi Minh City with US$183 million and US$163.43 million.
The manufacturing and processing industry topped the list of FDI attraction with 58 projects for total capital of US$905.15 million, accounting for 67.8 percent of total FDI in Vietnam in January. Exports of the FDI sector also increased by 3.2 percent compared to a year ago, reaching US$9.745 billion including crude oil, accounting for 70.6 percent of the country’s total export turnover. Meanwhile, its imports stood at US$8.15 billion, equal to 98.8 percent compared to a year ago, leading to a trade surplus of US$1.595 billion.
Three big FDI projects were licensed in January including the nationwide computerized lottery project with total investment capital of US$219.58million, the Singapore’s Maple Co., Ltd.’s US$110 million garment factory project and the New Wing Interconnect Technology’s US$100 million audiphones plant project in Bac Giang Province.