First two months show reassuring FDI scene

This view was voiced by Nguyen Mai, chairman of Vietnam Association of Foreign Invested Enterprises.

“Vietnam is a new bright spot in Southeast Asia due to the opportunities and advantages arising from the new free trade agreements (FTAs). Although foreign investors complain about the overly complex legal system and administrative procedures, they still highly appreciate Vietnam’s investment environment,” Mai shared.

The latest statistics released by the Ministry of Planning and Investment’s Foreign Investment Agency show that in the first two months of 2016, Vietnam attracted more than $2.8 billion in foreign direct investment (FDI), up 135 per cent on-year. The disbursed FDI volumes reached $1.5 billion, up 15.4 per cent on-year.

Notably, foreign investors poured $1.9 billion in 291 newly-registered FDI projects, signifying an on-year increase of 167.5 per cent in capital and 96.6 per cent in the number of projects, respectively. Besides, $898.3 million in added capital was contributed to 137 existing projects.

The processing and manufacturing sector ranks first in attracting foreign investment with $1.9 billion in capital, making up 71.2 per cent of the total FDI flow into the country. The second sector is art, entertainment and recreation with $210.6 million, making up 7.5 per cent of the FDI total.

Singapore is leading the list of foreign investors registering new projects in Vietnam in the first two months of 2016, with $435.2 million in capital, equalling 22.8 per cent of the total newly-registered capital. Other big investors include Malaysia, South Korea, and Japan with a total capital of $$233.2 million, $202.4 million, and $160.6 million, respectively.

Regarding investments by province, Hanoi attracted the largest amount of FDI in the country with an impressing $242.4 million. Bac Giang overtook Dong Nai province in close competition for the second place with a capital sum of $206.1 million.

According to Mai, in 2016, Vietnam is expected to attract between $20 and $25 billion in capital and disbursed FDI volumes of $16 billion, welcoming billion-dollar projects in the high-tech sector, education, and traffic infrastructure. Furthermore, a series of capital-intensive projects are expected to kick-off in 2016, namely the $4 billion South Hoi An resort complex in the central province of Quang Nam, and the $3.2 billion Vung Ro oil refinery in the central province of Phu Yen.

In addition, the ramping up of investments in Korean tech-giant Samsung’s existing projects, such as the hi-tech complex in Ho Chi Minh City, which has just doubled its investment to $2 billion, and Samsung Display in Bac Ninh, which quadrupled its investment to $4 billion in August 2015, is expected to significantly boost the disbursed FDI sum in 2016.