Foreign investment surpasses $15 billion in first half of 2020

In spite of the impact of the COVID-19 pandemic, the foreign investment capital in newly-registered projects and added capital in existing projects still increased in the first half.

According to statistics published by the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, in the first six months of this year, there has been a marked rise in both newly-registered and added capital, however, total foreign investment capital reached only $15.67 billion, signifying a decrease of 15.1 percent on-year.

Notably, foreign investors poured $8.44 billion in 1,418 newly-registered projects, up 13.8 per cent. Meanwhile, 526 existing projects were allowed to raise investment by more than $3.7 billion, up 26.8 percent on-year.

The foreign-invested capital via capital contribution or share purchases was $3.51 billion, only 43.2 percent of last year’s figure.

According to the agency, $8.65 billion of this foreign investment was disbursed in the first five months, equivalent to 91.5 per cent of last year’s corresponding period.

Foreign investors pledged to pour capital into 18 sectors, in which manufacturing and processing took the lead with nearly $8 billion, accounting for 51.1 percent of the total capital. It was followed by power production and distribution ($3.95 billion), wholesale and retail ($1.08 billion), and real estate ($850 million).

Among the 54 localities receiving foreign investment in the period, the southern province of Bac Lieu ranked at the top with $4 billion. Ho Chi Minh City came second with $2 billion and Ba Ria-Vung Tau placed third with $1.95 billion.

Singapore is still the largest foreign investor of Vietnam with the total capital of $5.3 billion, followed by Thailand and China both with $1.6 billion.

In June alone, numerous large-scale projects were granted investment certificates, including a knitting factory in Texhong Hai Ha industrial park ($214 million) and USI manufacturing factory ($200 million) invested by Chinese companies.

Source: VIR