Vietnam may reach new foreign investment record in 2018

If foreign investment inflows maintain their growth momentum until the end of the year, Vietnam can expect a new foreign investment record for the decade. Of particular note, the majority of the increase is generated by M&A deals.

According to statistics published by the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, generally, in the first eight months of 2018, foreign investors spent a total of $24.35 billion to register new and added capital as well as to contribute capital and purchase shares, which is a 4.2 per cent increase compared to the corresponding period of 2017.

Notably, as of August 20, 2018, the country granted investment certificates to 1,918 new projects, with $13.48 billion of newly registered capital, up 0.2 per cent on-year, and 736 capital adjustments with $5.58 billion, equalling 87.2 per cent of the figure from last year.

Meanwhile, 4,551 M&A deals were signed with the total investment capital of $5.28 billion, up 50.9 per cent compared to last year.

Foreign investors invested in 17 industries nationwide. The processing and manufacturing industry kept the top position with a total of $10.72 billion, equalling 44 per cent of the total foreign direct investment (FDI) inflows. The runner-up was the real estate sector with $5.9 billion, making up 24.2 per cent of the total.

In the first eight months of 2018, 97 countries and territories had investment projects in Vietnam. Japan ranked first with the total investment capital of $7 billion, making up 28.8 per cent of the total. South Korea ranked second with $5.16 billion, accounting for 21.2 per cent. The third was Singapore with $3.47 billion, capturing 14 per cent.

Regarding cities and provinces receiving FDI, foreign investors poured capital into 59 cities and provinces across the country. Hanoi attracted the largest investment capital volume among provinces with $5.93 billion.

Ho Chi Minh City ranks second with $4.42 billion. Besides, Ba Ria-Vung Tau ranked third for the first time, attracting the largest investment capital in the first six months with $2.17 billion.

2017 was a successful year for Vietnam in attracting FDI as a total of $35.6 billion arrived to the country, up 44.2 per cent compared to 2016.

FDI disbursement in 2017 reached a record of $17.5 billion, up 10.8 per cent against 2016.

Source: vir.com.vn