Vietnam lures investments of US$19.22 billion in first half

10:21 | 28/07/2017 Economy

(VEN) - According to the Ministry of Planning and Investment, Vietnam attracted foreign direct investment (FDI) of US$19.22 billion in the first half of this year, an increase of 54.8 percent compared to the same period a year ago, while FDI disbursement totaled US$7.72 billion, a year-on-year increase of 6.5 percent.  

The country attracted 1,183 new FDI projects with total registered capital of US$11.83 billion, an increase of 57.9 percent compared to a year ago. As many as 549 projects added capital totaling US$5.14 billion, a year-on-year increase of 35.8 percent. In addition, 2,501 foreign investors visited the country this year, buying shares that resulted in total capital contribution of US$2.24 billion. This represents a near doubling (97.6 percent increase) of last year’s first half figure.

Among the 18 sectors receiving FDI capital, the processing and manufacturing sector continued to attract the greatest interest with US$9.48 billion, accounting for 49.3 percent of total capital, followed by electricity production and distribution, and mining with US$5.25 billion and US$1.28 billion, respectively.

As many as 94 countries and territories invested in Vietnam in the first half of the year. Japan topped the list with US$5.08 billion, accounting for 26.45 percent of the FDI pledged to the country, followed by the Republic of Korea with US$4.95 billion and Singapore with US$3.48 billion.

Among the 60 localities receiving FDI capital, Thanh Hoa Province was the most attractive destination for foreign investors. The province attracted US$3.06 billion in FDI, followed by Bac Ninh Province with US$2.85 billion and Nam Dinh Province with US$2.19 billion.

Foreign investors poured capital into many large projects in the first half of the year. These include the BOT Nghi Son 2 Thermal Power project with nearly US$2.8 billion invested by Japan in Thanh Hoa Province; the Samsung Display Vietnam project with additional capital of US$2.5 billion in Bac Ninh Province; and the BOT Nam Dinh 1 Thermal Power project with more than US$2 billion invested by Singapore.

Phan Huu Thang, former director of the Foreign Investment Agency, said FDI attraction in the first half of the year showed a positive trend signaling that the whole year’s figure could be higher than last year’s total of US$24.3 billion.

Nguyen Mai, chairman of the Vietnam Association of Foreign-Invested Enterprises, said this year’s FDI could reach US$30 billion and its disbursement could stand at US$18 billion.

Exports of the FDI sector (including crude oil) reached US$70.81 billion in the first half of the year, an increase of 21 percent compared to a year ago, accounting for 72.4 percent of total export turnover. Meanwhile, imports stood at US$60.59 billion, a year-on-year increase of 28.3 percent, accounting for 60.3 percent of total import turnover. As a result, the FDI sector achieved a trade surplus of US$10.22 billion.

Nguyen Hoa