Q1 FDI inflow hits four-year high

13:35 | 30/03/2019 Economy

Foreign direct investment (FDI) registered in Vietnam during the first quarter of 2019 hit the highest level since 2016, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

The processing and manufacturing industry attracts US$8.4 billion of FDI in the first quarter of 2019

As of March 20, foreign investors had registered US$10.8 billion in new and additional capital and capital for buying shares of domestic firms, up 86.2% year-on-year.

This included US$3.82 billion for 785 new projects, rising by 80.1%. However, capital pumped into existing projects, at nearly US$1.3 billion for 279 existing ones, was equal to only 72.5% of the figure in the corresponding period last year. About US$5.68 billion, or 52.6% of the total figure, was registered to buy shares, three times the figure of one year ago.

Foreign investors poured money into 18 sectors, with US$8.4 billion or 77.7% channelled into processing and manufacturing. Real estate (US$778.2 million) and science-technology (US$383.2 million) came second and third in terms of FDI attraction.

The FIA said 74 countries and territories invested in Vietnam in the first quarter. Hong Kong (China) topped the list with US$4.4 billion, followed by Singapore (US$1.46 billion), the Republic of Korea (US$1.3 billion), China (US$1 billion), and Japan (US$700 million).

Meanwhile, the FDI capital flowed into 49 provinces and cities. Hanoi was the biggest destination, attracting over US$4.15 billion. Ho Chi Minh City and Binh Duong province followed with US$1.57 billion and US$625.6 million, respectively.

Between January and March, US$4.12 billion of FDI projects were disbursed, up 6.2% from the year previous.

According to the FIA, the foreign-invested sector exported US$41.45 billion worth of goods, including crude oil, during the three months, rising 2.7% year-on-year and accounting for 70.8% of Vietnam’s total exports. Excluding crude oil, the figure stood at US$40.95 billion, up 2.8% and making up 70% of the total shipments.

The FDI sector recorded a trade surplus of US$7.57 billion (including crude oil) and US$7.06 billion (excluding crude oil).