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Vietnam Today

2019 foreign investment at $38bn

Released at: 16:16, 26/12/2019

2019 foreign investment at $38bn

Photo: Viet Tuan

Total capital up 7.2% against 2018, latest MPI report shows.

by Minh Do

Total newly-registered and additional capital and capital contributions and share purchases by foreign investors stood at $38.02 billion in 2019, up 7.2 per cent against 2018, according to the latest report from the Ministry of Planning and Investment (MPI) released on December 25.

FDI projects disbursed $20.38 billion in 2019, up 6.7 per cent. “The number of foreign investors coming to Vietnam seeking investment opportunities increased 30 per cent compared to those in 2018,” the report stated. “Investors were mainly from Japan, South Korea, China, Hong Kong (China), and Singapore.”

As at December 20, Vietnam had 30,827 projects and $362.58 billion in valid registered capital. Disbursed capital was estimated at $211.78 billion, accounting for 58.4 per cent of valid capital.

The report showed that capital contributions and share purchases by foreign investors increased 56.4 per cent during the year compared to last year, with capital contributions standing at $15.47 billion from 9,842 transactions.

Investment in the form of capital contributions and share purchases has increased sharply in recent years and accounts for an increasingly large proportion of total foreign investment. In 2017, this form increased 10.9 per cent compared to 2016 and in 2018 9.1 per cent compared to 2017. Foreign investment in the form was mainly in manufacturing and processing, with 45.8 per cent of total capital, and real estate with 17.8 per cent.

There were 3,883 new projects granted investment licenses, up 27.5 per cent, with total newly-registered capital of nearly $16.75 billion, equivalent to 93.2 per cent of the figure in 2018, while 1,381 projects added capital to the tune of $5.8 billion, equivalent to 76.4 per cent of 2018’s figure.

Nineteen fields received investment from foreign investors, in which manufacturing and processing attracted much attention, with total capital of nearly $24.56 billion, accounting for 64.6 per cent. Real estate ranked second, with $3.88 billion, or 10.2 per cent, while wholesale and retail was third and science and technology fourth.

There were 125 countries and territories with valid investment projects. South Korea led the way, with nearly $7.92 billion, followed by Hong Kong (China) with $7.87 billion and Singapore with $4.5 billion.

Sixty-two cities and provinces received investment during the year, in which Hanoi attracted the most, with more than $8.45 billion, accounting for 22.2 per cent. Ho Chi Minh City followed, with more than $8.3 billion, accounting for 21.8 per cent, then southern Binh Duong and Dong Nai and northern Bac Ninh provinces.

The number of delegations coming to Vietnam to explore investment opportunities increased sharply, by about 30 per cent. Many of these delegations sought opportunities to shift their investment from China to Vietnam and were primarily from Japan, South Korea, China, Hong Kong (China), and Singapore.

Exports by the foreign-invested sector (including crude oil) were worth $181.35 billion, up 4.2 per cent against 2018 and accounting for 68.8 per cent of total export revenue. Exports excluding crude oil stood at $179.33 billion, up 4.4 per cent and accounting for 68.1 per cent of the total.

Imports by the FDI sector were $145.5 billion, up 2.5 per cent and accounting for 57.4 per cent of total import revenue. The FDI sector therefore posted a trade surplus in 2019 of $35.86 billion including crude oil and $33.8 billion excluding crude oil. This contributed greatly to the country’s total trade surplus of $9.9 billion.

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