$11.2 bn FDI pours into Vietnam

The total foreign direct investment (FDI) registered in Vietnam in the first half of the year reached more than $11.2 billion, the Foreign Investment Agency (FIA) said. This is a significant surge of 105 per cent against the same period last year. Of the total, $7.5 billion came from 1,145 newly licensed projects, representing an yearly increase of 95 per cent in capital and 56 per cent in the number of projects. The remainder was contributed by 535 already-operating projects that had raised their capital by more than $3.78 billion, or 129 per cent, year-on-year.

Disbursement of FDI surged to an estimated $7.25 billion in the six-month period, a YoY rise of 15 per cent, FIA reported. Manufacturing and processing industries continued to be the top sector, receiving FDI of $8.06 billion, comprising 71 per cent of the total registered FDI. The sector attracted 488 newly registered projects and 405 existing projects increased their capital. The sector was followed by the real estate sector, with 25 projects holding total capital of $604.8 million, accounting for 5.3 per cent of the total FDI. The science and technology sector took third place, with $562.3 million, or 5 per cent of the total FDI.

From January to June, 61 countries and territories invested in Vietnam. South Korea remained the leading investor, with $3.99 billion, 35 per cent of the FDI pledged to the country. Japan was the runner-up, with $1.22 billion, or 10 per cent of the FDI. Singapore followed with $1.1 billion, accounting for another 10 per cent of the total FDI. Among the 53 localities, the northern port city of Hai Phong was the most attractive destination for foreign investors. The city attracted $1.74 billion in FDI, comprising 15.4 per cent of the total FDI registered in the country in the first half of the year. The city received a $1.5-billion OLED display factory project from LG Display. The capital city was close on its heels with $1.63 billion, or 14.45 per cent of the total FDI.