Slight drop in foreign investment in VN

New foreign direct investment (FDI) registered in the 10 months of this year decreased by 1.3 per cent year-on-year to US$12.3 billion despite an annual rise of 25 per cent in the number of projects.

Up to 2,061 new foreign-invested projects were granted licences during the reviewed period, according to data issued by the Foreign Investment Agency.

In addition, increased investment of $5.35 billion was approved for 967 already operating projects, representing a year-on-year drop of 22.1 per cent.

In all, FDI flow into the country reached $17.61 billion in the ten-month period, down 8.7 per cent against the same period last year.

However, FDI disbursement experienced a positive growth of 7.6 per cent to an estimated $12.7 billion from January to October, according to the data.

Việt Nam had targeted $23 billion in FDI flow for 2016 with actual disbursement to reach about $12.5 billion.

The processing and manufacturing sector lured the lion’s share of FDI with approximately $12.85 billion, accounting for 73 per cent of the nation’s total FDI.

In the first 10 months of the year, investments originated from 65 countries and territories. South Korea was the largest foreign investor with $5.6 billion, constituting 32 per cent of the FDI pledged in the country. It was followed by Japan ($1.92 billion) and Singapore ($1.73 billion).

Foreign investors poured money in 54 cities and provinces nation-wide. The northern port city of Hải Phòng was the most attractive destination, pulling in $2.73 billion from 43 new projects and 34 existing projects.

The capital city came next with $2.03 billion or 12 per cent, followed by the southern provinces of Đồng Nai and Bình Dương.

Taiwanese investors

The southern Bình Dương Province, one of the country leading localities in FDI attraction, is offering the best possible conditions for investors, including those from Taiwan, an official said.

The province would continue to upgrade its infrastructure, including the route linking it with the southern key economic region, the provincial People’s Committee vice chairman, Trần Thanh Liêm, told Taiwanese businesses and investors late last week.

He added that the province would also build and expand industrial parks and streamline administrative procedures. At the dialogue, Taiwanese firms raised questions regarding Bình Dương’s labour policies and electricity supply in industrial parks.

According to the provincial Department of Planning and Investment, Bình Dương lured nearly $1.7 billion in FDI in the January-October period, up 9 per cent year-on-year, surpassing its yearly target by 20 per cent. The province had 211 new projects valued at $1 billion and 105 adjusted ones with added capital of $606 million.

As of mid-October 2016, Taiwan ranked second among the countries and territories investing in Bình Dương, with 738 projects worth nearly $5.15 billion, it said, adding that in the first 10 months of this year, Taiwanese businesses invested in 28 new projects and added capital to 14 others, with a combined capital of $131 million.

Source: VNS