Foreign investment through M&A surges while FDI drops
Foreign investment through M&A surges while FDI drops
Foreign investment in Vietnam in the January-July period through capital contributions and stake acquisitions rocketed 78% year-on-year, while foreign direct investment (FDI) declined 12%.
According to the Foreign Investment Agency, under the Ministry of Planning and Investment, fresh foreign investment approvals nationwide in the seven-month period reached US$20.2 billion. Of the total, there were 2,064 new FDI projects, with total registered capital of US$8.3 billion, and 791 projects with additional capital of over US$3.42 billion.
Meanwhile, foreign investors conducted nearly 4,400 transactions to contribute funds to and acquire shares in local firms, with a combined value of over US$8.52 billion.
New foreign capital was mainly poured into the processing and manufacturing sector, followed by the real estate, wholesale and retail, and automobile and motorcycle repair sectors.
The signing of the European Union-Vietnam Free Trade Agreement and the EU-Vietnam Investment Protection Agreement will help Vietnam receive more foreign investment from the bloc, especially in the service, finance, telecom, transport and distribution sectors, according to the Ministry of Planning and Investment.
