Vietnam: FDI attraction sets new record

The FIA under the Ministry of Planning and Investment announced that as of March 20, 493 new FDI projects got business licenses with a total value of US$ 2.917 billion, representing a year-on-year rise of 6.5%.

In addition, 223 projects got additional capital worth US$ 3.94 billion, up 206.4% against the same period last year.

Foreign investors bought US$ 852.86 million of shares, up 171.5 % against the same period last year.

In the January-March period, total amount of FDI was US$ 7.71 billion, making a year-on-year surge of 91.5%.

Large-scale newly-registered and capital-added  FDI projects were attributed to the sharp increase in FDI attraction in Q1. Especially, the Samsung Display Viet Nam project added US$2.5 billion to its ongoing project in the northern province of Bac Ninh. The Taiwanese investor registered to increase investment funds at Polytex Far Eastern Company by US $485.8 million and Coca-Cola Viet Nam supplemented US $319.8 million in Ha Noi. Newly licensed projects included US$284.75 million  Vietnam-Singapore Industrial Park III (VSIP 3) in Binh Duong, US$269.54 million Tole Panel Plant in Binh Phuoc and US$220 million KVT-1 tire fiber project of Kolon Industries Inc.

Thanks to the giant Samsung project, the Republic of Korea topped the list as the largest FDI provider in Viet Nam with US$ 3.74 million FDI (accounting for 48.61%); followed by Singapore with US$ 910.8 million (11.81%); and China (US$ 823.6 million (10.68%).

Of the 18 fields attracting FDI, the processing and manufacturing sector was the most attractive, absorbing US$ 6.54 billion or 84.9% of FDI in Q1. Real estate ranked second with US$ 343.69 million (4.4%); followed by wholesale and retail sales with US$ 296.8 million (3.85%).

The FIA reported that as of March 20, the total FDI disbursement hit US$ 3.62 billion, representing a year-on-year rise of 3.4%.

Source VGP