30.03.2021, 01:00

Vietnam’s three-month FDI expands over 18%

Vietnam’s three-month FDI expands over 18%

Employees are seen at work at a plant in Dong Nai Province. Vietnam attracted total registered capital worth US$10.13 billion for foreign direct investment projects in the year to March 20 – PHOTO: VNA

HCMC – Vietnam attracted total registered capital worth US$10.13 billion for foreign direct investment (FDI) projects in the year to March 20, improving 18.5% compared to last year’s figure, according to the Ministry of Planning and Investment’s Foreign Investment Agency.

Of the total amount, newly registered capital accounted for US$7.2 billion, up 30.6% versus the same period last year, while the additional capital injected into operation projects surged by up to 97.4% at US$2.1 billion. For nearly three months, foreign investors also spent US$908 million purchasing shares or contributing capital to Vietnamese companies, dropping 58.5% over the same period last year.

However, the resurgence of Covid-19 in many countries including Vietnam has obstructed foreign investors’ travel and investment decisions. Therefore, the number of newly licensed projects, projects with supplemented capital, capital contributions and share purchases by foreign investors continued to fall.

In this quarter, many major FDI projects in Vietnam were granted investment certificates or had their capital adjusted. Among them, the largest project by capital was the Long An I and II liquefied natural gas-fired power plants, whose total registered capital was over US$3.1 billion and the investor is a Singaporean firm. The O Mon II thermal power project developed by a Japanese investor ranked second, with over US$1.3 billion in investment.

Besides this, an additional US$750 million was injected into the LG Display Vietnam Haiphong’s project in Haiphong City and over US$312 million into a radian tire manufacturing project in Tay Ninh Province by a Chinese firm.

Foreign investors poured capital into 17 sectors in the country. Of them, the processing and manufacturing sector was the biggest FDI earner with nearly US$5 billion, accounting for some 50% of the total investment capital.

Further, Singapore was Vietnam’s biggest investor with nearly US$4.6 billion. Japan came second with a total investment of some US$2.1 billion, followed by South Korea with US$1.2 billion.