FDI disbursement at record high in 2016
FDI disbursement at record high in 2016
Disbursement of foreign direct investment (FDI) capital in 2016 was estimated at US$15.8 billion as of December 26, a record high and up 9 per cent on a yearly basis, according to the Foreign Investment Agency under the Ministry of Planning and Investment.
The number of projects granted licences in the year to December 26 was 2,556 with $15.1 billion in total register capital, up 27 per cent year on year in project number but equal to just 97.5 per cent of capital.
In the same period, 1,225 projects asked to add $5.76 billion to their capital.
Meanwhile, foreign investors purchased stakes worth more than $3.4 billion in 2,547 firms and economic organisations.
All in all, FDI capital inflow in 2016 totalled $24.4 billion.
The FDI sector posted an estimated export value (including crude oil) of $125.9 billion for the year, up 10.2 per cent from 2015 and accounting for 71.55 per cent of the country’s total export revenue. Non-oil export value was estimated at $123.55 billion, an increase of 11.8 per cent over 2015 and making up 70.2 per cent of the nation’s total export revenue.
The Foreign Investment Agency said the drop in new registered capital and additional capital was attributable to a lack of large-scale projects.
Two major projects, the $2.5 billion Nghi Son 2 power plant and the $2.5 billion Vung Ang 2 power plant, were initially hoped to receive licences this year, but they have now been delayed to 2017.
While FDI was poured into 19 sectors, the manufacturing and processing sector absorbed the biggest share of FDI capital with 63.7 per cent or $15.53 billion, followed by the automobile and motorbike wholesale, retail and repair with 7.79 percent (nearly $1.9 billion), and real estate with 6.9 per cent ($1.68 billion).
Among 95 countries and territories investing in Viet Nam in 2016, the Republic of Korea led in the term of capital with $7 billion (28.8 per cent of the total). Japan came second with $2.58 billion (10.62 per cent), and Singapore was third with $2.41 billion (9.9 per cent).
HCM City led cities and provinces nationwide in attracting FDI, absorbing $3.42 billion (14 per cent of the total). The northern port city of Hai Phong came next with $2.98 billion (12.26 per cent). Ha Noi, Binh Duong and Dong Nai followed with $2.79 billion, $2.36 billion and $2.23 billion, respectively.
Most remarkable among new FDI projects licensed in 2016 include the LG Display Hai Phong worth $1.5 billion invested by the RoK’s LG Display Co Ltd, the $550 million LG Innotek Hai Phong, invested by LG Innotek also of the RoK, and the Dam Nha Mac sea port-industrial park complex in Quang Ninh worth $315.46 billion invested by CDC of the Cayman Islands.
