Mon, 15th Apr 2024 12:41 (GMT +7)

FDI inflow increases by 38.6 per cent in two months

Thursday, 29/02/2024 | 09:35:26 [GMT +7] A  A

Foreign investments spread across 16 out of 21 economic sectors of Việt Nam, mostly in the manufacturing and processing industry with a total registered capital of $2.54 billion, or 59.1 per cent of the FDI influx into the country in the period, up by 16.8 per cent.

Concrete piles produced at Việt Nam GS Industry in Phú Mỹ 3 Specialised Industrial Park in Bà Rịa - Vũng Tàu Province. Foreign investors have pumped more than US$42.29 billion into Việt Nam from January to February 20. — VNA/VNS Photo Hồng Đạt

Foreign investors have pumped more than US$4,29 billion into Việt Nam from January to February 20, representing a rise of 38.6 per cent over the same period last year, the latest updates from the Vietnam Foreign Investment Agency showed.

Specifically, 405 new projects were granted investment certificates with a total registered capital of nearly $3.6 billion in the period, up by 55.2 per cent and more than 200 per cent, respectively. These include large-scale projects worth more than $600 million.

A sum of $442.1 million was registered to be added to 159 existing projects.

Foreign investors also poured $255.4 million in buying stakes, falling by 68 per cent against the same period last year.

Foreign investments spread across 16 out of 21 economic sectors of Việt Nam, mostly in the manufacturing and processing industry with a total registered capital of $2.54 billion, or 59.1 per cent of the FDI influx into the country in the period, up by 16.8 per cent.

The real estate business comes second with a total registered capital of nearly $1.41 billion, more than 3.5 times higher, followed by the wholesale and retail business with $125.2 million, and science and technology with $76.4 million.

With more than $2.08 billion in Việt Nam, Singapore is the largest investor among 48 countries and territories investing in Việt Nam in the period. Singapore’s investments into Việt Nam more than doubled compared to the same period last year.

Hong Kong ranks second with a total registered capital of nearly $525.7 million, 5.1 times higher.

China has the highest number of new projects in Việt Nam, accounting for 32.3 per cent of the total new projects in the period.

Foreign investments were poured into 38 provinces and cities in the first two months of this year. Hà Nội is the top destination, attracting nearly $914.4 million, a whopping 24.4 times higher than the same period last year, thanks to a large-scale investment project worth $662 million in urban development in the capital city.

Quảng Ninh received $471.1 million, ranking second, followed by Thái Nguyên, Bà Rịa – Vũng Tàu and Bắc Ninh.

The Ministry of Planning and Investment said FDI focuses on provinces and cities which have advantages in attracting FDI such as good infrastructure system, stable human resources, accelerated reforms and dynamic investment promotion.

The top 10 FDI destination provinces and cities accounted for 74.3 per cent of the number of new projects and 81.7 per cent of the total value.

As of February 20, a sum of $2.8 billion has been disbursed, up by 9.8 per cent.

The export value of the FDI sector also increased strongly in the first two months this year, by 29.8 per cent to reach more than $48.87 billion, accounting for 72.9 per cent of Việt Nam’s total export revenue.

The FDI sector’s import is worth a total $39.51 billion in the period, up 29.5 per cent and accounting for 64 per cent of the country’s total import revenue.

The FDI sector ran a trade surplus of more than $8.6 billion, excluding crude oil. In comparison, the domestic sector posted a trade deficit of $4.29 billion.

Việt Nam attracted a record FDI inflow of $36.6 billion in 2023.

The country has emerged as an attractive destination for FDI, promoted by stable politics, post-pandemic economic recovery, under-control inflation, improved infrastructure system, improved investment climate and abundant labour resources, as well as rapid international integration.

The Vietnamese Government also eyes to attract foreign investments in high-tech sectors, especially the semiconductor industry.

Source: Vietnam News