Vietnam remains attractive to foreign investors

08:08 | 20/02/2014 Economy

(VEN) - Vietnam attracted nearly US$400 million in foreign direct investment (FDI) in January 2014. Although this was only 78.1 percent of that in the same time last year, Vietnam attracted some large FDI projects last month underlining Vietnam’s continued attractiveness to investors.

According to the Foreign Investment Agency (FIA) of the Ministry of Planning and Investment, in January 2014 Vietnam attracted an additional 40 FDI projects with total registered capital of US$211.04 million (47.6 percent of that in January 2013), while six FDI projects increased their registered capital by a total of US$186.11 million (up 183.9 percent from January 2013). In other words, in January 2014, Vietnam attracted an additional US$397.15 million in FDI, which was 78.1 percent of that in January 2013, and saw US$465 million in FDI invested, up 3.3 percent from January 2013.

FDI projects attracted in January 2014 were found in nine fields, with the processing industry becoming the top FDI attractor with US$189.04 million in newly registered and increased capital (accounting for 47.6 percent of all FDI capital attracted in the month). The industry was followed by the real estate sector (US$176.33 million, 44.4 percent) and transportation and forwarding (US$17.05, almost 4.3 percent).

Singapore ranked first among 19 countries and territories investing in Vietnam in January 2014 with US$132.65 million in registered capital (accounting for 33.4 percent of all FDI capital attracted in the month), while the Republic of Korea (RoK) ranked second with US$88.8 million (22.36 percent), and Hong Kong (China) ranked third with US$44 million (11.08 percent).

The Singaporean-owned VSIP Hai Phong Co., Ltd (urban management, industrial and other services) increased its investment capital by US$122.303 million, while the Midea Consumer Electric Vietnam Co., Ltd (home appliances and parts) in Binh Duong Province increased its capital by US$40 million, and the Lotte Vung Tau trade center project was registered by a Korean investor to build, manage and operate a modern trade center.

Talking to the Vietnam Economic News in early 2014, Minister of Planning and Investment Bui Quang Vinh said that the Vietnamese investment environment is promoted with Vietnam’s political stability, social safety, macroeconomic stability, favorable geographical location in the heart of Southeast Asia, plentiful human resources, low labor cost and big market with an increasing purchasing power and income which is connected to the 600-million people market of ASEAN (Association of Southeast Asian Nations), China, Japan and the RoK.

The process of international economic integration of Vietnam is taking place on a deep and wide basis. According to Minister of Planning and Investment Bui Quang Vinh, Vietnam is a member of the World Trade Organization (WTO), ASEAN, the Asia Europe Meeting (ASEM) and the Asia Pacific Economic Cooperation Forum (APEC), and has diplomatic relations with over 180 countries and territories around the world; Vietnam is negotiating to join the Trans-Pacific Partnership Agreement (TPP) and a number of important free trade agreements (FTAs) with the EU and the RoK; the government and industries of Vietnam always attach much importance to the FDI sector; investment institutions and policies were gradually improved. All these factors build foreign investor trust and facilitate foreign investment in Vietnam," Vinh said./.

By Chu Huynh