Last updated: Monday, December 09, 2013
FDI Capital into Vietnam Faces Absence of Big ProjectsPosted: Thursday, February 28, 2013
No foreign-invested projects with registered investment capital of over US$100 million were seen in Vietnam in the first two months of 2013. With relatively modest projects, the value of foreign direct investment (FDI) capital in the first two months was lower than both the expected figure and that of the same period in 2012.
Specifically, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment (MPI), Vietnam licensed 99 new projects with a total registered capital of US$532 million in the year to February 20, 2013, equal to 46.1 per cent from the same period in 2012, and allowed 31 projects to add US$98.3 million to their existing projects in the period, equal to 19.7 per cent from a year ago.
Overall, the total foreign investment capital, including both fresh and additional, reached US$630.3 million, down 61.9 per cent from the same period in 2012.
FIA explained that the huge decline in fresh and additional capital from the same period in 2012 resulted from the licensing of colossal projects in the first two months of 2012, particularly the US$574 million project of Bridgestone Tire Sales Vietnam Co., Ltd, the US$180 million project of Oshima Shipbuilding Vietnam Co., Ltd, and US$150 million project of Lock & Lock Living Co., Ltd.
The absence of large projects was attributed to the sharp decline in registered capital and heralded a tough year ahead for attracting foreign investment.
According to FIA, the largest FDI project licensed in Vietnam in the first two months of 2013 was the Terumo BCT Vietnam Co., Ltd project worth US$98 million invested by Japan’s Terumo Corporation, followed by US$80 Shink Mark Hospital project invested by Radiant City of Samoa and Shink Mark of Taiwan in Dong Nai province, and the US$50 million Pruksa Vietnam Co., Ltd project invested by Pruksa International Co., Ltd of Thailand in Hai Phong City.
The most notable highlight was the five percent rise in disbursed capital in the reporting period, reaching US$1.05 billion.
In addition, the foreign-invested sector’s exports, including crude oil, were expected to reach US$12.2 billion in the first two months of 2013, up 27.3 per cent from a year earlier and equal to 64.34 per cent of the country’s total exports. If crude oil was excluded, the value was US$11 billion, up 27.5 per cent year on year.
FDI companies spent US$9.24 billion on imports in the first two months of 2013, up 13 per cent year on year and equal to more than 53.41 per cent of the nation’s total imports. In the January-February period, the FDI sector enjoyed a trade surplus of US$2.96 billion, while the country recorded a US$1.67 billion in trade surplus.
According to statistics, foreign investors invested in 14 industries in the first two months of 2013, led by processing and manufacturing sector with 44 projects valued at US$408.9 million, accounting for 64.9 per cent of the total registered capital.
The health and social assistance sector came second with US$80 million, both fresh and additional capital, accounting for 12.7 per cent of the total capital investment, followed by the real estate sector with two new investment projects worth US$50.2 million.
According to statistics, 25 countries and territories invested in Vietnam in the first two months of 2013. Japan took the lead with US$258 million, both fresh and added capital, accounting for 40.9 per cent of total foreign investment in Vietnam, followed by Taiwan with US$81.4 million and Singapore with US$56 million.
Dong Nai province attracted the most FDI capital with US$214.35 million, accounting for 34 per cent of the total, followed by Binh Duong province with US$134.9 million (21.4 per cent) and Hai Phong City with US$118 million.