Slight drop in foreign investment in VN

The Japan-Việt Nam joint venture Vietnam Stanley Electric Co Ltd produces automotive spare parts and components. — VNA/VNS Photo Danh Lam

HÀ NỘI – New foreign direct investment (FDI) registered in the  一0 months of this year decreased by  一. 三 per cent year-on-year to US$ 一 二. 三 billion despite an annual rise of  二 五 per cent in the number of projects.

Up to  二,0 六 一 new foreign-invested projects were granted licences during the reviewed period, according to data issued by the Foreign Investment Agency.

In addition, increased investment of $ 五. 三 五 billion was approved for  九 六 七 already operating projects, representing a year-on-year drop of  二 二. 一 per cent.

In all, FDI flow into the country reached $ 一 七. 六 一 billion in the ten-month period, down  八. 七 per cent against the same period last year.

However, FDI disbursement experienced a positive growth of  七. 六 per cent to an estimated $ 一 二. 七 billion from January to October, according to the data.

Việt Nam had targeted $ 二 三 billion in FDI flow for  二0 一 六 with actual disbursement to reach about $ 一 二. 五 billion.

The processing and manufacturing sector lured the lion’s share of FDI with approximately $ 一 二. 八 五 billion, accounting for  七 三 per cent of the nation’s total FDI.

In the first  一0 months of the year, investments originated from  六 五 countries and territories. South Korea was the largest foreign investor with $ 五. 六 billion, constituting  三 二 per cent of the FDI pledged in the country. It was followed by Japan ($ 一. 九 二 billion) and Singapore ($ 一. 七 三 billion).

Foreign investors poured money in  五 四 cities and provinces nation-wide. The northern port city of Hải Phòng was the most attractive destination, pulling in $ 二. 七 三 billion from  四 三 new projects and  三 四 existing projects.

The capital city came next with $ 二.0 三 billion or  一 二 per cent, followed by the southern provinces of Đồng Nai and Bình Dương.

Taiwanese investors

The southern Bình Dương Province, one of the country leading localities in FDI attraction, is offering the best possible conditions for investors, including those from Taiwan, an official said. 

The province would continue to upgrade its infrastructure, including the route linking it with the southern key economic region, the provincial People’s Co妹妹ittee vice chairman, Trần Thanh Liêm, told Taiwanese businesses and investors late last week. 

He added that the province would also build and expand industrial parks and streamline administrative procedures. At the dialogue, Taiwanese firms raised questions regarding Bình Dương’s labour policies and electricity supply in industrial parks. 

According to the provincial Department of Planning and Investment, Bình Dương lured nearly $ 一. 七 billion in FDI in the January-October period, up  九 per cent year-on-year, surpassing its yearly target by  二0 per cent. The province had  二 一 一 new projects valued at $ 一 billion and  一0 五 adjusted ones with added capital of $ 六0 六 million. 

As of mid-October  二0 一 六, Taiwan ranked second among the countries and territories investing in Bình Dương, with  七 三 八 projects worth nearly $ 五. 一 五 billion, it said, adding that in the first  一0 months of this year, Taiwanese businesses invested in  二 八 new projects and added capital to  一 四 others, with a combined capital of $ 一 三 一 million. — VNS