Jan-Feb FDI disbursement highest in three years
Jan-Feb FDI disbursement highest in three years
Realized foreign direct investment (FDI) capital in the year’s first two months grew 9.8% year-on-year to US$2.58 billion, the highest January-February growth in three years, while other FDI indicators were also robust, the Government said at a February press meeting on March 1.
In the past two months, fresh capital pledged in the country has picked up almost 76% against the same period a year earlier, while additional capital injected into existing projects was up 22%, and the amount of capital attracted via capital contribution and stake purchases quadrupled. In all, FDI inflows totalled US$8.47 billion, increasing by 2.5 times year-on-year.
At the news conference, Minister Mai Tien Dung, head of the Government Office, said that socio-economic conditions in January and February stayed stable and positive in almost all areas.
Last month, the consumer price index (CPI) went up 0.8% against the previous month, core inflation upped 0.48% month-on-month and 1.82% year-on-year. Such higher growth rates are attributed to the commonly strong consumption during Tet.
The index of industrial production grew by 9.2%, compared to 13.7% recorded in last year’s same period. In addition, total retail sales of goods and services increased by 12.2% year-on-year, whereas the rise of last year’s same period was 9.25%.
The period also saw export growth of 5.9%, with the domestic economic sector growing by 9.9% and the FDI sector, including crude oil, up 4.3%.
Nearly 16,000 businesses were established last month, down 14.6% in number but up 25.4% in registered capital. Besides, more than 10,000 businesses resumed operations, a year-on-year rise of 48.2%
Regarding international tourist arrivals, Vietnam welcomed around 3.15 million foreigners in the first two months of the year, 10% higher than last year’s same period.
The Hanoi summit between the U.S. and North Korea last week is regarded as a chance for Vietnam to attract international visitors. Last month alone saw almost 1.59 million foreign arrivals, up 5.8% month-on-month and 10.9% year-on-year, which is the highest monthly number of international arrivals.
However, there exist many difficulties that need to be resolved such as African hog cholera outbreaks in northern localities and declining exports of major products.
As Dung said at the meeting, besides favorable conditions, it is undeniable that the economy is still faced with many difficulties and challenges like low labor productivity and competitiveness, as well as impacts of the China-U.S. trade war on socio-economic development in the coming time.
