Decline in FDI projects in May

The Foreign Investment Agency of the Ministry of Planning and Investment has reported that this month witnessed the lowest foreign direct investment (FDI), with only US$322 million coming in from 51 new foreign-invested projects, an 80 per cent drop from last month.

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During this month, 13 existing projects increased their capital by US$343 million, a year-on-year increase of 50 per cent in capital but a slump of 53 per cent in the number of projects.

In the first five months of this year, the total registered FDI reached US$4.7 billion, 23.5% from this year’s target, down by 76.5 per cent against the same period last year.

Disbursement of FDI in May reached US$900 million, bringing total disbursement of FDI in the first five months of the year to US$4.52 billion.

The foreign-invested sector saw an estimated five-month export turnover of US$16 billion, up 33.7 per cent year-on-year. The sector also experienced an export surplus of US$1.4 billion.

Despite the gloomy picture, FDI influx into HCM City still increased by 67.5 per cent to reach US$1.52 billion during the first five months of this year, according to the municipal Department of Planning and Investment.

During the period, the city granted licences to 123 new foreign-invested projects worth US$1.33 billion, up 61 per cent year-on-year.

Meanwhile, it also approved capital increase valued at US$193 million for 42 operating projects, a 126 per cent surge against the same period last year.

By A. Thu – Translated by T.Loan

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