10:05 | 29/08/2019 Economy
(VEN) - According to the Ministry of Planning and Investment’s Foreign Investment Agency, in the first seven months of the year, Vietnam attracted more than US$20.2 billion in foreign direct investment (FDI). In particular, a strong increase was recorded in the value of capital contributions and share purchases by foreign investors.
In the first seven months of the year, overseas players spent more than US$8.5 billion to acquire shares in Vietnamese companies, an increase of 78 percent compared to a year ago. FDI disbursement reached an estimated US$10.55 billion.
The capital city remained the most attractive destination for foreign investors among the 55 provinces and cities targeted by investors, luring nearly US$4.9 billion, equivalent to 24 percent of all FDI pledged in the country. Ho Chi Minh City came next with US$3.54 billion (18 percent) and the southern province of Binh Duong claimed third position with US$1.73 billion (8.6 percent).
Among 19 fields and sectors receiving capital from foreign investors, manufacturing and processing led with US$14.5 billion. Real estate came next with nearly US$1.5 billion, followed by retail and wholesale with more than US$1 billion. Foreign Investment Agency data show that the foreign-invested sector’s exports (including crude oil) and imports reached US$101.1 billion and US$82.5 billion, respectively, resulting in a trade surplus of about US$18.6 billion in the reviewed period.
Hong Kong (China) took the lead among the countries and territories investing in Vietnam in the first seven months of the year, with US$5.44 billion, including more than US$4 billion in capital contributions and share purchases. The Republic of Korea ranked second with US$3.13 billion, followed by China with US$2.45 billion, Singapore with US$2.29 billion and Japan with US$2.25 billion.
Among the major Hong Kong (China) investments in the first seven months of 2019 were a US$3.85 billion BeerCo Limited acquisition of a stake in the Vietnam Beverage Co., Ltd. In addition, Goertek received an investment certificate for a US$260 million project to develop a factory manufacturing electronics, network equipment and multimedia sound systems in the northern province of Bac Ninh; and Meiko Electronics Vietnam registered to increase investment capital by US$200 million for designing, assembling and manufacturing electronic components in Hanoi.
In recent years, mergers and acquisitions (M&A) have proven an effective capital-raising economic channel. In the remaining months of the year, FDI inflows to Vietnam will continue to increase, especially in real estate, finance and energy.
The EU-Vietnam Investment Protection Agreement (EVIPA) is expected to promote EU investment and increase the
level of economic liberalization in the country, especially in the fields of technical services, finance,
telecommunications, transport and distribution.