Vietnam expects $30 billion FDI by year-end
Vietnam expects $30 billion FDI by year-end
In the ten months of this year so far, Vietnam reported record high foreign investment inflows, with $28 billion coming in, primarily from APEC economies. The figure is expected to increase to $30 billion by the end of the year.
New record with spectacular growth
According to statistics published by the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, in the ten months of this year, Vietnam attracted a total foreign investment capital of $28.24 billion, up 37.4 per cent on-year.
$16.3 billion of this is newly-registered capital, $7.27 billion is added capital, and foreign indirect investment capital through M&A activities is $4.67 billion, signifying increases of 32.9, 35.9, and 58.8 per cent on-year, respectively.
Previously, the Ministry of Planning and Investment forecasted that in 2017, foreign investors will pour a total of $28 billion in Vietnam, marking a record in recent years and 12 per cent higher than the initial expected figure for the whole year. However, within a single month, the actual figure overcame forecasts.
As foreign capital flows are on an upward trend, Vietnam now expects to lure in up to $30 billion in foreign investment capital by the end of the year, marking a new record in the country’s history.
Foreign indirect capital has also been soaring. According to statistics published by the Ministry of Planning and Investment, as of October 20, there have been 4,156 M&A transactions with a total value of $4.67 billion, up 58.5 per cent on-year.
Dang Xuan Quang, deputy director of FIA, shared that foreign investors have been steadily increasing investments in Vietnam through M&A deals. The trend will gather momentum in the future.
APEC economies take the cake
APEC economies have contributed an average 78 per cent to the total foreign investment capital arriving to Vietnam.
Notably, according to the statistics published by FIA, all large-scale projects between January and October thisy ear came from APEC economies, including the $2.8-billion Nghi Son 2 thermal power project from Japan, the $2.5-billion added capital to Samsung Display from South Korea, and the $2.07-billion Nam Dinh thermal power plant from Singapore, just to name a few.
In October as well, Vietnam reported a newly-registered project invested by Korean Lotte Group. Accordingly, four affiliates (Lotte Asset Development, Lotte Shopping, Lotte Hotel, and Lotte Engineering and Construction) will implement the Eco-Smart City in Thu Thiem New Urban Area with a total investment capital sume of VND20.1 trillion ($884 million).
In the ten months of this year, APEC economies poured $24 billion into Vietnam, making up 85 per cent of the total foreign investment capital. Besides, APEC economies hold the top position on the list of foreign investors having the largest investment capital in Vietnam. South Korean investors rank first with a total $7.62 billion and the runners-up are Japanese investors with $6.07 billion and Singaporean investors with $4.59 billion.
Economist Truong Dinh Tuyen said that hosting the APEC 2017 is expected to give a significant boost to Vietnam’s trading and investment activities, much like Vietnam’s previous hosting of APEC in 2006.
