FDI flow into Vietnam drops to US$12.72 billion

Foreign Direct Investment (FDI) into Vietnam this year decreased by 18 percent to touch US$12.72 billion due to the current global economic slowdown, according to a  report released by the Ministry of Planning and Investment yesterday.

This amount includes $7.8 billion in registered capital for 1,097 new projects and $4.9 billion in additional registered capital for 406 existing projects.

This year's FDI inflow inched down by 5 percent against last year to touch $10.5 billion.

However, the Foreign Investment Agency under the Ministry of Planning and Investment informed that FDI in the manufacturing and processing sectors had increased remarkably this year.

According to the Ministry, manufacturing and processing were the most attractive industries for foreign investors this year with a registered capital of $8.9 billion, accounting for 70 percent of the country's total registered capital.

The real estate industry followed closely behind with $1.8 billion, 14.5 percent of the country's total registered capital.

Several large projects are taking shape in these industries, including one $870 million electronic components project supervised by Taiwan's Wintek in Bac Giang Province; a $830 million mobile phone project for Samsung from the Republic of Korea in Bac Ninh Province; a $574.8 million project by Bridgestone Manufacturing Co. Ltd. to produce tyres in Hai Phong City; a project by worldwide LIXIL Vietnam Company in Dong Nai worth $441 million.

Japan remained the largest investor with total registered capital of more than US$5 billion, occupying 40.3 percent of total FDI in Vietnam, followed by Singapore, the Republic of Korea, Hong Kong (China) and Singapore.

The southern province of Binh Duong was the most attractive destination for foreign investors this year with more than $1.63 billion, making up 20.9 percent of the country's total registered capital.

This was followed by the northern city of Hai Phong, the capital city of Hanoi and the southern province of Dong Nai, with more than $1.11 billion, $618.8 million and $468.7 million, respectively.

Vietnam hopes to attract $14-15 billion FDI next year, of which $10-11 billion would be disbursed.

As the continuing global economic slowdown could affect the country's FDI attraction target, experts recommend that the country intensify administrative procedures to ease investors' spirits.

Human resource development, especially in areas of science and technology, could also make the country more attractive to foreign investors, experts said.

Source SGGP, translated by Dan

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