Nine-month foreign investment soars

10:48 | 30/10/2017 Economy

(VEN) - According to the Foreign Investment Agency under the Ministry of Planning and Investment (MPI), Vietnam attracted US$25.48 billion of foreign direct investment (FDI) in the first nine months of 2017, a rise of 34.3 percent compared with the same period last year. This included newly registered projects, increases in the capital of ongoing projects, capital contributions and stock purchases. Meanwhile, US$12.5 billion was disbursed, up 13.4 percent.

nine month foreign investment soars

The MPI attributed FDI increases to a variety of reasons, including large projects valued at several billion US dollars. Examples include the Nghi Son 2 thermal power project based in Thanh Hoa Province with total investment of US$2.79 billion from a Japanese company; the Samsung Display Vietnam project based in Bac Ninh Province increased its capital by US$2.5 billion; and the Nam Dinh 1 thermal power project based in Nam Dinh Province with investment of US$2.07 billion from a Singaporean company.

Another reason, in the opinion of Nguyen Bich Lam, head of the MPI’s General Statistics Office of Vietnam, is the improvement of the investment environment. Ministries, sectors and localities have actively helped businesses overcome difficulties, strengthening investor trust in the Vietnamese economy.

In the first nine months of this year, Vietnam attracted 1,844 new FDI projects with total registered capital of US$14.56 billion, up 30.4 percent compared with the same period in 2016. Also in the first three quarters, 878 ongoing FDI projects registered capital increases totaling US$6.75 billion, up 28.3 percent compared with the same period last year, while capital contributions and stock purchases by 3,742 foreign investors and organizations totaled US$4.16 billion, up 64 percent.

Processing and manufacturing industries remained the most attractive sectors to foreign investors in the first nine months of this year, with US$12.64 billion, accounting for 49.6 percent of the total. Explaining FDI concentration in these sectors, economists said Vietnam has a large workforce and offers lower labor costs compared with some other countries in the region and worldwide. Basing their factories in Vietnam, foreign investors can enjoy attractive tax preferences when carrying out import, export activities.

Economists believe Vietnam will remain an attractive destination for foreign investors in the short term, especially investors from Asian countries and territories, such as Japan, the Republic of Korea, Singapore and Chinese Taipei. However, to attract quality FDI projects, Vietnam needs to further improve the business climate to create a fair environment for both domestic and foreign businesses.

In the first nine months of 2017, Vietnam attracted FDI from 108 countries and territories with the Republic of Korea taking the lead with US$6.31 billion, accounting for 24.7 percent of total registered FDI in Vietnam.

Nguyen Hoa