FDI disbursement in first two months highest in five years

FDI disbursement in first two months highest in five years

Foreign direct investment disbursed in Vietnam during the first two months of the year was estimated at $3.21 billion, up 8.8 per cent on year, according to the Statistics Office. This is the highest level of disbursed FDI for the first two months over the past five years.

Foreign direct investment disbursed in Vietnam during the first two months of the year was estimated at $3.21 billion, up 8.8 per cent on year, according to the Statistics Office. This is the highest level of disbursed FDI for the first two months over the past five years.

Of the total, the manufacturing and processing sector attracted $2.65 billion, accounting for 82.7 per cent of total disbursed FDI. Real estate activities received $223.5 million, equivalent to 7 per cent, while electricity, gas, hot water, steam and air-conditioning supply accounted for $119.2 million, or 3.7 per cent.

In terms of newly committed investment, total registered FDI capital reached $6.03 billion, a 12.6 per cent on-year decline.

Specifically, 620 newly licensed projects were granted investment certificates with total registered capital of $3.54 billion, up 20.2 per cent in the number of projects and 61.5 per cent in registered capital compared with the same period last year.

Among these, the manufacturing and processing sector continued to pull in the largest share of newly registered FDI, with $2.63 billion, accounting for 74.3 per cent of total newly registered capital. The wholesale and retail sector, including repair of motor vehicles, motorcycles and motorbikes, received $358.6 million, or 10.1 per cent, while other sectors accounted for $550.5 million, representing 15.6 per cent.

Among the 44 countries and territories with newly licensed investment projects in Vietnam, South Korea was the largest investor with $1.34 billion, accounting for 37.8 per cent of newly registered capital. It was followed by Singapore with $1.1 billion (31.1 per cent), China with $522.8 million (14.8 per cent), and Japan with $171 million (4.8 per cent).

In addition, 180 previously licensed projects registered capital adjustments, adding $1.99 billion in additional investment, down 52.3 per cent on-year.

Including both newly registered capital and additional capital for existing projects, total FDI registered in the manufacturing and processing sector reached $4.16 billion, accounting for 75.2 per cent of total newly registered and additional capital. The wholesale and retail sector, including vehicle repairs, attracted $392.7 million (7.1 per cent), while other sectors accounted for $979.7 million, or 17.7 per cent.

Foreign investors also conducted 492 capital contributions and share acquisition transactions, with a total value of $499.5 million, down 5.7 per cent compared with the same period last year.

Under this form of investment, manufacturing and processing attracted $244.7 million, accounting for 49 per cent of the total value. The wholesale and retail sector, including vehicle repairs, received $103.7 million (20.8 per cent), while other sectors accounted for $151.1 million, or 30.2 per cent.

Among 34 provinces and cities receiving FDI during the period, Thai Nguyen unexpectedly emerged as the country’s leading destination, attracting nearly $1.7 billion in foreign investment, an increase of 1,354 per cent on year. The result has positioned the northern mountainous province as a standout performer in Vietnam’s FDI landscape at the beginning of the year.

Ho Chi Minh City ranked second with about $900.2 million in FDI inflows over the two-month period, followed by Bac Ninh with $818.5 million and Hanoi with $624.5 million. Other provinces in the top 10 included Tay Ninh ($570.6 million), Ha Tinh ($411.1 million), Dong Nai ($213.7 million), Hung Yen ($204.7 million), Haiphong ($133.2 million) and Hue ($123 million).

Beyond leading in investment scale, Thai Nguyen also recorded remarkable growth compared with many other localities. While several major industrial centres such as Ho Chi Minh City and Bac Ninh reported on-year declines, foreign capital flowing into Thai Nguyen surged dramatically.

VIR