Vietnam attracts $7.5 billion FDI in first five months

Foreign direct investments (FDI) into the country in the first five months of the year reached US$7.5 billion, of which $4.5 billion were disbursed, according to a report from the Ministry of Planning and Investment's Foreign Investment Agency.

The country licensed 360 new foreign direct investment (FDI) projects in the first five month, with a total registered capital of US$7.1 billion, an increase of 40 percent over the same period last year, the Foreign Investment Agency (FIA) has reported.

To date, foreign investors poured $4.5 billion into Vietnam in direct investment, up 7.1 percent from the same period last year, the agency said.

However, just 107 operational projects registered to add $403 million into their investment, down 91.4 percent from the same period last year.

Due to the slowdown in the increased capital amount of FDI projects, total registered amount in the first five months is going down. New FDI pledges and increased capital for existing projects during the January – May period achieved $7.5 billion, equaling to 77 percent of same period of 2009, said the agency.

On an average, $900 million is disbursed each month in January – May.

In May alone, the country licensed 97 new foreign direct investment (FDI) projects, with a total registered capital of UD$1.5 billion in May. Also, 15 operational projects sought approval to increase capital size with an extra of $78 million this month.

As of now, Netherlands, the Vietnam’s largest foreign direct investor, pledged to invest a total registered capital of $2.2 billion. Korea placed Japan and US behind to take the second biggest investor in Vietnam with registered $1.5 billion, making up 20 percent of FDI attraction of Vietnam in the period. Japan ranked the third with registered $1.1 billion.

In details, the processing and manufacturing sector received much attention of foreign investors with 127 projects being registered, $2.55 billion increased.

Notably, foreign investors pledged to invest $2.2 billion in the fields of production and distribution of electricity, gas and water, accounting for 28.6 percent of total registered FDI in Jan-May, followed by the real estate sector with $1.283 billion of newly licensed and increased capital, including $1.281 billion from 10 new projects.

By A.Thu, translated by Thanh Huong

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