Processing-manufacturing sector attracts investors

11:06 | 14/03/2014 Economy

(VEN) - The Ministry of Planning and Investment’s Foreign Investment Department recently released its report on foreign direct investment (FDI) in the first two months of this year. Vietnam attracted US$1.539 billion in both new and supplementary FDI capital in these months, with the processing and manufacturing sector accounting for a vast majority.

By February 20 Vietnam had attracted 122 new FDI projects with total registered capital of US$830.87 million accounting for 80.7 percent of during the same period a year ago. In addition, 42 ongoing projects had increased their capital by US$708.79 million accounting for 23 percent of what was a year ago. Both new and supplementary FDI capital amounted to US$1.539 billion in the first two months of the year representing 37.5 percent of what was in the same period last year.

The Foreign Investment Department attributed the sharp decline in FDI in these months to the lack of billion-US-dollar projects. This time last year a series of billion-US-dollar projects were agreed such as the Thanh Hoa-based Nghi Son Oil Refinery Project, which increased its capital by US$2.8 billion to more than US$9 billion.

In the first two months of this year foreign investors had invested in 14 industries in Vietnam. The processing and manufacturing sector led attracting 62 new projects with total new and supplementary capital of US$1.178 billion accounting for 76.5 percent of all FDI capital in Vietnam during this period. The real estate sector took second place with total new and supplementary capital of US$278.33 million making up 18.1 percent of all FDI capital and followed by the transport and warehousing sector with nine new projects and total new and supplementary capital of US$21.75 million accounting for 1.4 percent of all FDI capital.

With total new and supplementary registered capital of US$468.98 million accounting for 30.5 percent of all FDI capital in Vietnam, the Republic of Korea led 29 countries and territories investing in Vietnam in the first two months of the year, followed by Singapore with US$264.55 million and 17.2 percent, and Japan with US$263.36 million and 17.1 percent, respectively.

The top three provinces and cities in terms of FDI attraction during this period included Binh Duong attracting US$690.51 million and accounting for 44.8 percent of all registered FDI capital, Hai Phong US$195.85 million and 12.7 percent, and Ho Chi Minh City US$147.95 million and 9.6 percent, respectively.

The Foreign Investment Department said that although registered FDI capital fell in the first two months of this year, the amount of disbursed capital increased by 6.7 percent from a year ago reaching US$1.12 billion and showing positive signs in terms of Vietnam’s FDI attraction.

The FDI sector’s imports and exports had also soared in these months. Exports are expected to reach US$13.855 billion, an 11.8 percent increase from a year ago, accounting for 65.79 percent of all export revenues. Imports from this sector hit US$11.757 billion, a 17.1 percent increase, accounting for 56.48 percent of all import revenues. The sector recorded an export surplus of an amazing US$2.098 billion during this period./.


By Chu Huynh