Seven-month foreign investment surges 52 percent

10:23 | 29/08/2017 Economy

(VEN) - According to the Ministry of Planning and Investment’s Foreign Investment Agency, in the first seven months of 2017, Vietnam attracted US$21.93 billion in foreign direct investment (FDI), an increase of 52 percent compared to the same period last year.

seven month foreign investment surges 52 percent

Total capital doubles

The first seven months of the year saw an increase in newly registered and additional capital, total capital contribution and FDI disbursement. Specifically, the country attracted 1,378 new FDI projects with total registered capital of US$12.92 billion, an increase of 48.7 percent compared to a year ago, while 677 projects added capital totaling US$5.87 billion, a year-on-year increase of 38.5 percent. In addition, 2,946 foreign investors visited the country in the first seven months of the year, buying shares that resulted in total capital contribution of US$3.12 billion. This represents a doubling (109.7 percent increase) of last year’s first seven months’ figure.

According to economists, foreign investors have identified business opportunities in the Vietnamese market, leading to an increase in total capital contribution. In particular, the increase was attributed to the government’s efforts in promoting international economic integration, improving the national investment environment and accelerating capital divestment from large corporations and groups, such as Vinamilk, Petrolimex, Sabeco, Habeco and MobiFone.

FDI disbursement in the first seven months of the year also reached US$9.05 billion, up 5.8 percent over the same period in 2016.

Processing sector in first place

Among the 18 sectors receiving FDI capital in the first seven months of the year, the processing and manufacturing sector continued to attract the greatest interest with US$10.38 billion, accounting for 49.4 percent of total capital, followed by electricity production and distribution, and mining with US$5.25 billion and US$1.28 billion, respectively.

Phan Huu Thang, former director of the Foreign Investment Agency, said foreign investors’ interest in Vietnam’s processing and manufacturing sector is a good sign because it not only creates jobs but also helps Vietnam achieve its goal of becoming an industrialized country by 2020.

As many as 98 countries and territories invested in Vietnam in the first seven months of the year. The Republic of Korea topped the list with US$5.62 billion, accounting for 25.63 percent of the FDI pledged to the country, followed by Japan with US$5.46 billion and Singapore with US$3.8 billion.

Thanh Hoa Province is the most attractive destination for foreign investors so far this year. The province attracted US$3.06 billion in FDI in the first seven months of the year thanks to the BOT Nghi Son 2 Thermal Power project with nearly US$2.8 billion invested by Japan.

Nguyen Hoa