FDI attraction hits $11.7 bln in 5M

Vietnam attracted FDI capital of over $11.07 billion in the first five months of this year, as of May 20, a year-on-year rise of 2%, according to the Foreign Investment Agency (FIA) at the Ministry of Planning and Investment.

The country licensed 1,227 new FDI projects during the period with a total registered capital of $7.94 billion, surging 27.5% in volume and 50.8% in value compared to the same period last year.

Meanwhile, 440 projects had their capital added, with a total of over $2.08 billion, dropping 9.3% and 8.7% year-on-year, respectively.

Of which, May witnessed the largest amount of added capital by investors compared to previous months of this year with nearly $800 million.  

Foreign investors also injected more than $1.05 billion into 1,158 capital contribution and share purchase deals during the period, down 68.2% and 9.4% year-on-year, respectively.

The disbursement of FDI capital soared 7.8% year-on-year to some $8.25 billion during the five-month period.

Foreign firms invested in 47 out of the total 63 centrally-run cities and provinces of Vietnam during the five-month period.

Southern Ba Ria-Vung Tau province led the country, in terms of registered capital, with over $1.52 billion, accounting for 13.8% of the total. It was followed by Hanoi with nearly $1.14 billion and northern Bac Ninh province with over $1.06 billion.

Most of the FDI ran to localities with sound infrastructure, stable human resources, concerted efforts in administrative procedure reform, and active investment promotion work like Ba Ria – Vung Tau, Hanoi, Bac Ninh, HCM City, Dong Nai, Quang Ninh, Bac Giang, Hai Phong, Thai Nguyen, and Hung Yen, according to the FIA.

Among the 78 countries and territories having investment in Vietnam in the first five months, Singapore was the largest since it landed nearly $3.25 billion in the country, making up of 29.3% of the total and growing 28.2% year-on-year.

Foreign firms invested in 17 out of the 21 economic sectors, with the processing and manufacturing industry taking the lead, with over $7.42 billion, or 67.1% of the total and up 11.9% year-on-year. It was followed by the real estate industry with $1.98 billion, wholesale and retail sales with $514.2 million, and transport and warehousing with $342.2 million.