FDI jumps by half despite economic gloom

An employee is pictured at the Samsung Vietnam manufacturing plant in Bac Ninh July 12, 2013

Despite economic challenges, Vietnam’s FDI in 2013 reached US$21.6 billion, up 54.5 percent year-on-year. 1,275 new projects were licensed with a total registered capital of $14.3 billion, while 472 projects added $7.3 billion to their existing capital, increasing 70.5 percent and 30.8 percent year-on-year, respectively.

Some US$11.5 billion worth of foreign direct investment (FDI) was disbursed in December of this year, an increase of 9.9 percent in comparison with the same period of 2012, according to a report issued by the Foreign Investment Agency.

The manufacturing sector attracted 605 new projects from foreign investors. Newly-registered and additional capital to the sector is some US$16.636 billion, or 76.9 percent of the total capital registered.

The sector of electricity, gas, water and air conditioners ranks second as the newly-registered and additional capital is some US$2.031 billion, or 9.4 percent of the capital registered.

The real estate sector ranks third with 20 newly-licensed FDI projects. Newly-registered and additional capital to this sector is some US$951 million.

Big projects including Vietnam's second oil refinery Nghi Son, which recently added US$2 billion into its capital, EVN’s Vinh Tan 1 power plant with the total capital of US$2 billion and Samsung’s electronic component manufacturing plant in Thai Nguyen with a capital of US$2 billion are said to be behind this year’s FDI success.

The northern Thai Nguyen province has the highest FDI attraction this year with $3.3 billion. Central Thanh Hoa province ranks second with $2.9 billion, accounting for roughly 14 percent of the nation’s total. Northern Hai Phong ranks third with $2.6 billion.

This is a sign showing Vietnam is a choice for foreign investors despite the current economic challenges. The FDI inflows contribute significantly to promoting the economy, especially in the context of a difficult budget year.

Export turnover from FDI enterprises contributes to the country’s trade surplus in 2013. In the foreign-invested sector, a trade surplus is recorded at $13.954 billion while the country as a whole posts an $863 million trade surplus.

Tuoi Tre

Business & Investment Opportunities 

Saigon Business Corporation Pte Ltd (SBC) is incorporated in Singapore since 1994.