Foreign investment maintains momentum

10:06 | 19/12/2019 Economy

(VEN) - According to the Ministry of Planning and Investment’s Foreign Investment Agency, in the first 11 months of the year, the number of delegations coming to explore investment opportunities in Vietnam surged by about 30 percent compared to a year ago. Many of the visiting delegations sought opportunities to shift investment from China to Vietnam and were primarily from Japan, the Republic of Korea, China, Hong Kong (China), and Singapore.

foreign investment maintains momentum

In the January-November period, Vietnam attracted US$31.8 billion in foreign direct investment (FDI), a year-on-year increase of 3.1 percent. As of November 20, as many as 3,478 new projects were granted licenses with total registered investment capital of US$14.68 billion, an increase of 28.2 percent in number of projects but a drop of seven percent in value compared to the same period last year.

Although newly registered investment capital decreased, this figure was smaller than the previous months. Experts attribute the decline mainly to a number of large-scale projects that received licenses in the same period last year.

In the reviewed period, some 1,256 existing projects were injected with an additional US$5.87 billion, equivalent to 79.3 percent of the level during the corresponding period last year.

Overseas players spent US$11.24 billion to acquire shares in Vietnamese companies in the first 11 months of the year, an increase of 47.1 percent compared to a year ago and accounting for 35.4 percent of total FDI commitments.

According to the Foreign Investment Agency, in recent years, the value of capital contributions and share purchases by foreign investors have increased sharply and accounted for an increasing proportion of total FDI commitments. Specifically, this figure stood at 17.02 percent in 2017, 27.78 percent in 2018, and 35.4 percent in the first 11 months of 2019.

Among 19 fields and sectors receiving capital from foreign investors, manufacturing and processing led with US$21.56 billion, accounting for 67.8 percent of the nation’s total FDI. Real estate business came next with US$3.31 billion (10.4 percent), followed by retail and wholesale.

Hong Kong (China) took the lead among the 117 countries and territories investing in Vietnam in the first 11 months of the year, with US$6.69 billion, thanks in large part to BeerCo Limited’s acquisition of a stake in the Vietnam Beverage Co., Ltd. The Republic of Korea ranked second with US$5.73 billion (18 percent of all FDI), followed by Singapore with US$4.47 billion (14 percent), China and Japan.

Among 60 cities and provinces receiving investment, the capital city remained the most attractive destination for foreign investors, luring US$6.82 billion, equivalent to 21.5 percent of all FDI pledged in the country. Ho Chi Minh City came next with US$5.48 billion (17.2 percent), followed by Binh Duong, Dong Nai and Bac Ninh.

Thu Phuong