FDI capital attraction sharply drops in Q1

SGGP
According to the Foreign Investment Agency under the Ministry of Planning and Investment, total foreign direct investment (FDI) capital into Vietnam in the first quarter of this year was at US$8.55 billion, merely accounting for 79 percent of that in the same period last year.
Of which, newly-registered capital reached $5.5 billion, up 45 percent compared to the same period last year, thanks to the Bac Lieu liquefied natural gas-fired power plant project with investment capital of $4 billion. In terms of volume, there were 240 times of projects asking to increase capital with total additional capital of only $1.07 billion, accounting for 82 percent of that in the same period last year. Besides, there were 2,520 times of capital contribution and purchase of shares of foreign investors with a total value of roughly $2 billion.

Power generation and distribution is currently the most attractive field with $4 billion of investment capital, accounting for 47.5 percent of total registered investment capital. Industrial processing and manufacturing industry followed with $2.72 billion, accounting for 32 percent of total registered investment capital.

According to economic experts, the Covid-19 pandemic has affected seriously investment activities of foreign investors, causing FDI capital attraction in the first quarter of this year to drop in both volume and value. However, disbursed investment capital remained positive, touching $3.85 billion, accounting for 93.4 percent compared to the same period last year.

By Han Ni – Translated by Thuy Doan

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