Wednesday, 17 Jan 2018

Foreign investment inflow forecast to hit $28b in 2017

Updated at Thursday, 12 Oct 2017, 07:31
The Hanoitimes - Foreign capital registered to invest in Vietnam will reach roughly US$28 billion this year, the Ministry of Planning and Investment (MPI) estimates.
Of the total, roughly $21 billion will be disbursed, of which $3.5 billion will be through share purchase and capital contribution to domestic firms.
If the estimate comes true, it will be the first time the country can attract such a large amount of foreign capital, the ministry noted.
The result is positive, especially in the context that many countries in the region have experienced political instability. Vietnam is emerging as a leading investment destination, with political stability, economic development potentials and improved investment and business environment.
A worker at the Panasonic Vietnam Co in Hanoi’s Bac Thang Long Industrial Zone.
A worker at the Panasonic Vietnam Co in Hanoi’s Bac Thang Long Industrial Zone.
In particular, the hosting of the 2017 Asia-Pacific Economic Cooperation (APEC) forum is considered a "golden opportunity" for Vietnam to boost economic and investment cooperation with APEC member economies. Most of Vietnam's top investment partners, such as Japan, Republic of Korea, the US, mainland China, Thailand and Taiwan, are all APEC’s members.
Previously, more than 10 years ago, after hosting APEC 2006, Vietnam also became the magnet for foreign direct investment (FDI), with the peak in 2007-2008. The country, therefore, this year also expects highly to accelerate the FDI capital inflow thanks to the APEC 2017.
FDI registered in Vietnam reached a record $25.48 billion in the first nine months of this year, up 34.3 per cent year-on-year, MPI’s data showed.
Of the sum, $14.56 billion came from 1,844 new projects, up 30.4 per cent year-on-year. Another $6.75 billion was added to 878 existing projects, 28.3 per cent higher than the same period last year.
The remainder of the FDI, worth $4.16 billion, came from 3,742 deals made by foreign investors to contribute capital to businesses and to buy shares of Vietnamese businesses, jumping 64 per cent compared with last year’s corresponding period.
During the reviewed period, FDI disbursement also saw an yearly increase of 13.4 per cent to $12.5 billion, according to the data.
Chairman of the Vietnam Association of Foreign-Invested Enterprises Nguyen Mai said that it was positive as the gap between the registered and disbursed FDI capital was shortened.
From January to September, South Korea retained its position as the leading investor in Viet Nam with $6.31 billion, and 24.7 per cent of the FDI pledged to the country. It was followed by Japan with $5.91 billion, or 23.2 per cent of the FDI, and Singapore with $4.14 billion, or 16.2 per cent.
Among 59 localities receiving FDI during the nine-month period, the southern economic hub of HCM City was at the top with $3.74 billion, accounting for 14.6 per cent of the country’s total FDI.
The central province of Thanh Hoa was the runner-up with $3.15 billion, or 12.4 per cent of the total FDI. Northern Bac Ninh Province came third with $3.14 billion, or 12.3 per cent./.

​Nguyen Thu Ha
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