16:42 | 24/05/2016 Economy
(VEN) - According to the Ministry of Planning and Investment (MPI), Vietnam attracted more than US$6.88 billion in foreign direct investment (FDI) in the first four months of this year, a rise of 85 percent on-year.
Specifically, Vietnam attracted 697 new FDI projects with total registered capital of over US$5.08 billion and allowed 314 ongoing projects to increase their capital by more than US$1.8 billion.
Based on these results, the MPI has predicted FDI flows into Vietnam are set to strongly increase in 2016.
Political stability, a large consumer market, an abundant workforce, an improving business environment, and Vietnam’s deepening integration into the global economy through free trade agreements are major factors making Vietnam attractive to foreign investors, said Vietnam Association of Foreign Investment Enterprises Vice President Nguyen Van Toan.
In the first four months foreign investment in Vietnam covered 19 fields with processing and manufacturing industries remaining in top position with registered capital reaching over US$5.24 billion, accounting for 76.2 percent of the total. Science and technology investment recorded registered FDI of US$334 million, accounting for nearly 4.9 percent of the total. US$242.5 million was invested in wholesale, retail, and vehicle repair, accounting for 3.5 percent of the total. Other fields such as real estate and entertainment also attracted foreign investors.
The northern port city of Hai Phong took the lead among 46 cities and provinces that attracted new FDI projects in the first four months, with US$1.59 billion, accounting for 31.3 percent of the total. Dong Nai and Hanoi ranked second and third respectively, with US$724 million and US$663 million. The Republic of Korea topped the list of the 50 countries and territories with new FDI projects in Vietnam in the first four months, with US$2.83 billion, accounting for 41.2 percent of the total; Singapore ranked second with US$730 million, and Chinese Taipei ranked third with US$664 million. Apart from Asian investors, Vietnam also attracted FDI from the US and European countries such as the UK, France, Germany, and the Netherlands.
Major FDI projects receiving licenses in the first four months included LG Display Hai Phong, a US$1.5 billion project of the LG Group, aiming to manufacture plastic OLED screens for mobile phones, smart watches, and tablet PCs; a US$300 million research and development center project of Samsung Electronics Vietnam, based in Hanoi, and Dai Duong Paper Production Co., Ltd, a US$220 million project of Chinese Taipei investors, based in Tien Giang Province, aiming to produce Duplex and Kraft paper.
US$4.7 billion of FDI was disbursed in the first four months of this year, a rise of 12 percent compared with the same period in 2015.