09:24 | 09/05/2017 Economy
(VEN) - According to the Ministry of Planning and Investment’s Foreign Investment Agency, Vietnam attracted US$10.95 billion in foreign direct investment (FDI) in the first four months of 2017, an increase of 40.5 percent compared to a year ago. The manufacturing and processing sector took a lead in FDI attraction with US$7.36 billion, accounting for 69.53 percent of the country’s total.
Investment certificates were issued to 734 new projects in the first four months of the year, with total registered capital of US$4.88 billion, a drop of four percent over the same period last year.
As many as 345 foreign-invested projects increased their capital by US$4.36 billion, up 241.8 percent over the same period last year. In addition, there were 1,687 M&A deals involving foreign investors, with total capital contributions of US$1.35 billion, more than double the same period of 2016. Moreover, total FDI disbursement in the first four months of the year reached US$4.8 billion, an increase of 3.2 percent compared to a year ago.
Do Nhat Hoang, the general director of the Foreign Investment Agency, said that Vietnam has advantages in FDI attraction. Firstly, the stable security and political situation is an important condition for long-term investment.
Secondly, Vietnam has a favorable geographical location in trade with the world, as well as being a connection hub of the region and a gateway to economies in the western part of the Indochina Peninsula. Thirdly, with a population of more than 92 million people, Vietnam has an abundant and quality labor force with competitive costs. Moreover, 12 new generation free trade agreements and Vietnam’s participation in the ASEAN Economic Community (AEC) provide good opportunities for Vietnam to connect with the regional and the world market.
Hoang foresees that the manufacturing and processing sector will continue to engage the interests of foreign investors and Vietnam will therefore focus on attracting investment in support industries and high-tech and environmentally-friendly projects.
To become even more attractive for foreign investors, experts believe Vietnam needs to further improve its investment environment, including perfecting institution and enhancing the quality of human resources.
Vietnam has to date attracted 11,838 FDI projects in the manufacturing and processing sector, with registered capital of
US$175 billion, accounting for 51.6 percent of the number and 58.9 percent of total foreign capital invested in Vietnam.