Foreign investors drawn to Vietnam’s manufacturing-processing

The manufacturing-processing sector continued to attract the major share of foreign direct investment (FDI) in Vietnam in the first half of 2018, with US$7.91 billion, accounting for 38.9% of the total registered capital.

It was followed by real estate, with US$5.54 billion, and the wholesale and retail sector with US$1.5 billion, making up 27.3% and 7.4% of the total, respectively.

According to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, in the period, FDI poured into Vietnam exceeded US$20 billion, while US$8.37 billion was disbursed, up 5.7% and 8.4% from the same period last year respectively.

Foreign investors invested in 1,362 new projects, added capital to 507 existing ones and contributed capital and bought shares in domestic companies 2,749 times.

Japan ranked first among 87 nations and territories investing in Vietnam in the first half, with US$6.47 billion, followed by the Republic of Korea (US$5.06 billion), and Singapore (US$2.39 billion).

During January-June, foreign investors poured their capital into 55 provinces and cities, in which Hanoi ranked first with US$5.87 billion. The capital city was followed by Ho Chi Minh City (US$3.68 billion), and Ba Ria-Vung Tau province (US$1.93 billion).

According to Deputy Minister of Planning and Investment Nguyen The Phuong, after 30 years of Vietnam opening its door to foreign investors, the FDI sector has become an important part of the economy.

To date, the country has attracted nearly 26,000 projects with a registered capital of US$326 billion. Disbursement is estimated at US$180 billion.

Foreign investment accounts for 25% of the country’s total investments and contributes 20% of GDP. Last year, the sector contributed nearly US$8 billion to the State budget, 14.4% of total revenue.

At present, 58% of foreign investments focus on processing and manufacturing, generating half of industrial production value.

Source: vov.vn