Total foreign direct investment (FDI) into Vietnam is estimated to have reached US$5.217 billion in the first six months this year, representing an on-year rise of 8 per cent, according to the Ministry of Planning and Investment (MPI).
Of the sum, 575 newly-licensed projects account for a combined registered US$4.3 billion, up 69.6 per cent and 6.4 per cent in terms of the project number and capital value respectively, while the rest comes from existing projects’ capital expansion.
Singapore topped among 36 foreign investors in Vietnam during the period, with $890 million for 31 projects, pushing South Korea to second position with $733.9 million. India came third with $572.2 million.
Southern Ba Ria-Vung Tau province took the lead in the FDI attraction in the first half with $724.6 million. The central province of Thua Thien-Hue remained the second position and was followed by southern Binh Duong province.
Between January and June this year, the industrial production sector made up 56.5 per cent of the total registered capital, while the figure was 43.2 per cent for the services sector. However, this has shown a remarkable change in the FDI ratio between these two industries as compared to the figures of 72.7 per cent and 22.6 per cent, respectively, of the same period last year.
The MPI also said that the country’s FDI disbursement reached $2.2 billion, up 20.5 per cent on-year.
To spur the FDI wave, the Vietnamese government has recently released a list of projects open to foreign investment, including a $500 million rolled steel plant in either Ha Tinh or Ba Ria-Vung Tau Province with annual capacity of two million tons.
Others included a $170 million alloy plant of 100,000 tons a year in Haiphong city; a shipyard each in Ba Ria-Vung Tau and Binh Dinh provinces; a petrochemical plant; oil refinery; thermal and hydropower plants; and drugs plant.
Vietnam’s FDI this year could hit around $16 billion, far surpassing 2006’s record of $10.2 billion, the MPI forecast.
The nation will set up first investment promotion offices in key markets, namely Japan, the US, Germany, France, the Republic of Korea, Singapore, Saudi Arabia, Qatar and Taiwan in the coming time. (Vietnam Economic Times, Vietnam & World Economy)
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