10:49 | 20/07/2016 Economy
(VEN) - Vietnam attracted US$11.284 billion worth of foreign direct investment (FDI) in the first six months of this year, a 105.4 percent increase from a year ago, according to the Ministry of Planning and Investment’s Foreign Investment Agency.
The country has received 1,145 FDI projects with total registered capital of US$7.497 billion so far this year, a 95.3 percent increase from a year ago, plus 535 projects increasing their capital by US$3.787 billion, a 129 percent increase. Both new and supplementary FDI capital sharply increased, providing good signs for Vietnam’s investment environment. However, according to General Statistical Office Director Nguyen Bich Lam, FDI flows will not change much until the end of the year and will unlikely exceed the 2015 figure of almost US$23 billion.
FDI projects disbursed US$7.25 billion in the first half of this year, a 15.1 percent increase from the same period last year, demonstrating the great efforts made by ministries, sectors and local authorities in order to improve the investment environment. The growth also underscores foreign investor trust in Vietnam’s business environment.
Among the 19 sectors receiving FDI capital, the processing and manufacturing industry continued to attract greatest interest. The industry welcomed 488 new FDI projects and saw 405 ongoing projects increasing their capital raising total new and supplementary FDI capital to US$8.06 billion accounting for 71.4 percent of total FDI capital so far this year.
At a recent meeting to announce socioeconomic statistics for the first half of the year, the General Statistical Office emphasized the large amount of FDI capital going to processing and manufacturing. This is also a basis for Vietnam to achieve the goal to become an industrialized country by 2020.
Sixty-one countries and territories invested in the country in the first six months of the year, with the Republic of Korea setting the pace with total new and supplementary capital of US$3.99 billion representing 35.37 percent of total FDI. Japan took second place with US$1.229 billion and 10.8 percent, followed by Singapore with US$1.129 billion and 10 percent, respectively.
Despite the growth in terms of FDI attraction and disbursement, economists underlined shortcomings including a large number of projects investing in Vietnam in order to make the most of low labor costs and investment preferences. In addition, the FDI sector has not had a great impact on the domestic sector.
According to FDI Business Association Chairman Nguyen Mai, it is necessary to further improve the legal framework to facilitate FDI businesses, make them an important part of the economy and increase their impact on the domestic sector.
Fifty-three of the 63 centrally-controlled cities and provinces in Vietnam attracted FDI projects in the first six months of this year.