FDI disbursement rises 2% in first eight months

Disbursement of foreign direct investment (FDI) capital in Vietnam hit USD11.58 billion this year to August 20, an increase of 2% compared to the same period last year, according to the Ministry of Planning and Investment.

The ministry said 1,135 new projects were granted investment licences in the period, plunging 36.8% against the same period last year. However, total registered capital was up 16.3% to nearly USD11.33 billion.

About 640 existing projects had their capital adjusted up by a total of nearly US$5 billion, up 2.3% year on year.

Capital contributions and share purchases by foreign investors fell 43.4% to USD2.81 billion.

Foreign investment was poured into 18 sectors, with processing and manufacturing absorbing the largest amount, with USD9.3 billion, or 48.4% of the total FDI inflow in the 8-month period.

Power generation and distribution followed with nearly USD5.5 billion, while real estate attracted USD1.6 billion and wholesale and retail sales USD734 million.

Of 92 countries and territories investing in Vietnam during the period, Singapore took the lead with more than USD6.2 billion, followed by Japan with more than USD3.2 billion and the Republic of Korea (RoK) with USD2.4 billion.

The Mekong Delta province of Long An led in attracting FDI with over USD3.6 billion, Ho Chi Minh City came second with about USD2.2 billion, and its neighbouring province of Binh Duong was third with USD1.7 billion.