Singaporean investors top those from other
member countries of the Association of Southeast Asian Nations, better known as
ASEAN, in investing in Vietnam with 1,330 existing projects worth $32.6
billion, according to the Foreign Investment Agency (FIA) under the Ministry of
Planning and Investment.
With
those figures, Singaporean-owned projects in Vietnam accounted for 54 percent
of total projects and 62.3 percent of total registered capital from all the
foreign direct investment (FDI) projects financed by ASEAN investors by the end
of October, said the FIA.
Malaysia
ranked second with 475 projects with a total investment of $10.7 billion, making
up 19.3 percent of total projects and 20.5 percent of the total registered
capital.
It is
followed by Thailand with 370 projects with total investment of $6.65 billion,
accounting for 15.04 percent of total projects and 12.7 percent of the total
registered capital. Thailand is followed by
Brunei, Indonesia, the Philippines, Laos and Cambodia.
By the
end of last month, investors from ASEAN had 2,459 valid projects with total
registered capital of US$52.34 billion; accounting for more than 21.4 percent
of total foreign investment capital registered in Vietnam.
The
estimated size of an FDI project financed by investors from ASEAN averages
about $21.3 million, higher than the average rate of other FDI projects funded
by non-ASEAN investors, or about $14.45 million.
Proactive moves
According
to statistics, as of September ASEAN countries have invested in 18 out of 21
business sectors in Vietnam.
In
particular, the field of processing and manufacturing industries topped with
950 projects worth $20.07 billion in registered capital, accounting for 39.08
percent of total projects and 38.72 percent of total investment.
The
sector drawing the second-most attention from ASEAN investors is real estate,
with 92 projects worth a total $16.48 billion in registered capital, accounting
for 3.78 percent of the total number of projects and 31.81 percent of total
investment.
It is
followed by the construction sector, with 166 projects with registered capital
of $3.03 billion, representing 6.8 percent of the total number of projects and
5.85 percent of total investments.
Firms
managed by ASEAN investors in Vietnam have two primary forms - a 100-percent
foreign-owned firm and a joint venture.
While the
former had 1,794 projects with registered capital reaching $32.68 billion
(accounting for 73.8 percent of total projects and 63 percent of total
investments), the latter had 576 projects with registered capital of $17.67
billion (accounting for 23.69 percent of the total number of projects and 34.09
percent of total investment).
ASEAN
investors have invested in 55 out of 63 provinces and cities in Vietnam, with
investment focusing on large cities with better infrastructure development. The
most are located in Ho Chi Minh City, with 1,036 the projects worth $13.2
billion in registered capital, representing 42.6 percent of the total number of
projects and 25.46 percent of total investment.
HCMC is
followed by the capital city of Hanoi (391 projects, $8.53 billion) and the
southern province of Ba Ria - Vung Tau (66 projects, $6.16 billion).
The
prospect for investment cooperation between Vietnam and ASEAN is tremendous
because Vietnam is an active member in this community, said the FIA.
Vietnam
has clinched a variety of bilateral cooperation deals with the member countries
in every field, and has associated socioeconomic development with integration
into the international economy.
ASEAN is
currently transforming itself into a new stage of development, aiming to form
an ASEAN Economic Community (AEC) in 2015 with three pillars:
political-security, economic and socio-cultural.
After the
AEC is established with the realization of the ASEAN Comprehensive Investment
Agreement (ACIA), the ASEAN Trade in Goods Agreement (ATIGA) and ASEAN
Framework Agreement on Services (AFAS) will help increase the attractiveness of
the region to FDI.
Therefore,
the AEC will also open the door to new FDI to Vietnam, said FIA.
Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated
in Singapore since 1994.
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