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Disbursed FDI up 10.5% in January

Released at: 10:06, 30/01/2018

Disbursed FDI up 10.5% in January

Illustrative image from nld.com.vn

New capital, meanwhile, down 65% year-on-year in first month.

by Quang Huy

Disbursed foreign direct investment (FDI) totaled $1.05 billion for the year as at January 20, an increase of 10.5 per cent compared to January 20, 2017, government data reveals.

Foreign investors secured approval to pour $442.6 million into 166 new projects in Vietnam during the month, down 64.4 per cent year-on-year in value and 5.1 per cent in project numbers, a General Statistics Office (GSO) report released on January 29 noted.

They also added $456.8 million to 61 existing projects, up 155 per cent from a year earlier. Overseas investors also outlaid $356 million on mergers and acquisitions (M&As) during January, up 54.7 per cent from a year earlier.

Manufacturing remained the most appealing sector, attracting $746.8 million into both new and operational projects in January and accounting for 83 per cent of total foreign investment. M&A outlays totaled $162.2 million.

Foreign investors poured capital into 24 cities and provinces around the country. Ho Chi Minh City ranked first, with $52 million, or 11.8 per cent of the total, followed by Nam Dinh with $80.2 million, Ninh Thuan $60 million, and Binh Duong $36.7 million.

Singapore emerged as the largest investor in Vietnam during the opening month of the year in terms of fresh capital, with $147.7 million. Following were South Korea and Norway, with $70.4 million and $70.1 million.

FDI in 2017 hit a new record of $35.88 billion, up 44.4 per cent against 2016.

Disbursement also came in at a record level, rising 10.8 per cent to $17.5 billion.

To fully capitalize on FDI as a capital source in the new era, the Ministry of Planning and Investment is drafting a strategy for 2018-23. With assistance from the World Bank, the draft states that Vietnam should focus on sectors with advantages and those where foreign enterprises bring more benefits than domestic firms bring.

Under the draft, Vietnam should set out priority sectors for attracting FDI, such as those that need higher value and competitiveness, including manufacturing, services, agriculture, and tourism.

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