Viet Nam's foreign investment plunges 39 per cent in Q1
Viet Nam attracted nearly US$5.45 billion worth of foreign investment in the first quarter of the year, down 39 per cent year-on-year, according to the Foreign Investment Agency (FIA).
Of the three-month figure, over $3 billion came from 522 newly-licensed projects, up 62 per cent in a number of projects but down 6 per cent in the level of capital compared to the same period last year.
Some $1.2 billion was added to 228 existing ones, representing a yearly hike of 3 per cent in a number of projects and a yearly decline of 70.3 per cent in the capital.
However, foreign investors' capital contribution and share purchases rose 4 per cent year-on-year to $798 million, the FIA said.
Along with the contraction in fresh capital, the disbursed capital also slightly plunged 2.2 per cent from a year earlier to $4.3 billion, it noted.
The most significant proportion of the period's foreign investment, $4 billion or 73 per cent, landed in processing and manufacturing, followed by real estate, with $766 million or 14.1 per cent.
In Q1, Singapore topped foreign investors, pouring $1.69 billion into Viet Nam or equivalent to 31 per cent of the nation's total foreign investment. It was followed by mainland China ($552 million) and Taiwan ($477 million).
According to the FIA, newly foreign-invested projects still came towards localities that had many advantages in attracting foreign investment such as good infrastructure, stable human resources, efforts to reform administrative procedures and dynamism in investment promotion. They included Bac Giang, Dong Nai, Bac Ninh, HCM City and Hai Phong.
For example, Dong Nai Province lured $500 million in foreign investment in the first three months, nearly tripling that in the same period last year, the provincial industrial parks management board has said.
Of the figure, there were 11 new projects with a total registered capital of nearly $50 million and 22 others with additional capital of more than $451 million, mainly from Japan, South Korea and Taiwan (China). All of them utilise advanced technology and skilled labour in priority investment sectors. Among the 11 new foreign-invested projects, six were in supporting industry.
Deputy head of the board Pham Van Cuong said over recent months, foreign investment attraction in Dong Nai has thrived with increasing quantity and quality of projects which involve the construction of new factories and manufacturing expansion.
Foreign investors pin high hope on projects underway in the province, especially Long Thanh airport and expressways. He said the province has also stepped up administrative reform and dealt with investor concerns.
According to the approved plan, Dong Nai has 40 industrial parks (IPs) with an area of about 19,000ha. The province is now home to 32 IPs already in operation, with an occupancy rate of over 85 per cent. The remaining IPs are yet to be built due to obstacles regarding investment procedures, rubber and forest land processing, auction and bidding, and zone planning.
Cuong said the province hoped that the Government, ministries and agencies would tackle bottlenecks and create favourable conditions for it to establish new IPs, thus attracting more capital from big corporations and businesses world-wide.