- August 5, 2022
- Posted by: GBS
- Categories: Business, Economics
Foreign direct investment disbursement surges in seven months, up 10.2 per cent year-on-year, the Ministry of Planning and Investment’s Foreign Investment Agency (FIA)’s latest report showed.
Director General the Foreign Investment Agency said foreign-invested businesses have been constantly recovering and expanding production and business activities and these figures showed their great confidence in presence in the global supply chain of Vietnam.
During the period, capital added to existing foreign-invested projects also saw a strong increase of 59.3 per cent to $7.24 billion.
According to the Foreign Investment Agency, over 900 new foreign projects, capitalized at $5.7 billion, were licensed in the first seven months, down 8 per cent in the number of projects and 43.5 per cent in capital year-on-year.
Related: Here’s how to set-up a foreign invested company in Vietnam
The agency attributed the decline in newly-registered capital to fact that some large-scaled projects worth over $100 million were already registered in the seven months of 2021.
Capital pledged to such projects accounted for 63 per cent of the country’s total registered capital in the reviewed period.
Meanwhile, the seven-month period saw few foreign-invested project worth over $100 million, making up only 40.2 per cent of the total capital pledged in the country, according to Foreign Investment Agency.
In another bright spot, foreign investor capital contributions and share purchases surged 26 per cent to $2.58 billion, which brought the total foreign investments into the country from January to July to $15.41 billion, equivalent to 92.9 per cent of the last year’s same period.
The processing and manufacturing sector lured the lion share of FDI with over $10 billion, accounting for 64.3 per cent of the country’s total capital.
Real estate came next with $3.21 billion or 20.7 per cent. Science and technology and information and communication were the runners-up with $526.2 million and $465 million, respectively.
Singapore remained the leading foreign investor in the country with above $4.3 billion, making up almost 27.7 per cent of the total FDI registered in the country.
South Korea followed with nearly $3.26 billion or 21 per cent, and Denmark with $1.32 billion or 8.6 per cent.
The country’s other source of FDI were mainland China, Japan and Hong Kong.
Among 51 countries receiving FDI in the period, Southern Province of Binh Duong took the lead with nearly $2.6 billion or equivalent of 16.7 per cent of the total, following by HCMC and Bac Ninh Province with $2.43 billion or 15.6 per cent and $1.68 billion or 10.8 per cent.
Foreign invested businesses recorded a trade surplus of nearly $19.6 billion in seven-months, Vietnam News Agency reported.