More capital from tax havens poured into Vietnam

A report of the Foreign Investment Agency (FIA) showed that Vietnam attracted US$13 billion worth of foreign direct investment (FDI) in the first seven months of the year, an increase of 47% over the same period last year. The capital, including US$8.7 billion worth of newly registered and US$4.3 billion worth of additionally invested capital, will be used to develop 1,408 projects.

The Republic of Korea (RoK) tops the list of the largest foreign direct investors as investors from the country plan to pour US$4 billion more into Vietnam, raising total investment capital registered to US$49 billion.

However, analysts noted the strong rise in FDI from countries and territories known as the ‘tax havens’ such as British Virgin Islands, Singapore, Hong Kong, Cayman, Bermuda, Panama, Jersey, Luxembourg, New Zealand, Bahamas, Panama, Delaware State in the US, Switzerland and Ireland.

Singaporean investors have outstripped Japan to become the second largest foreign investor in Vietnam with registered investment capital of US$1.4 billion and 152 projects in first seven months of the year and US$32 billion so far. The figure was US$358 million in the same period last year, as Singapore ranked the eighth largest foreign investor.

The capital from Hong Kong has soared by 40% to US$1 billion in the first seven months of the year, which has put it into fifth position in the list of largest foreign investors.

To date, Hong Kong’s investors have registered US$15.8 billion worth of investment and implemented 1.064 projects in Vietnam.

Meanwhile, the famous tax haven – British Virgin Islands – invested US$447 million in the first seven months of the year, raising its total investment capital to US$19.4 billion.

The investors from Cayman Islands registered US$285 million worth of capital, and Luxembourg US$207 million, raising total investment capital to US$6.7 billion and US$2 billion, respectively.

Vietnam has also witnessed a strong wave of foreign investors contributing capital and buying stakes in enterprises.

Since July 1, 2015, foreign investors have contributed capital to 3,141 businesses and conducted share transfer deals worth US$2.9 billion. Real estate, retail and air transport are the most attractive to foreign investors.

Some large projects licensed in the first seven months of the year:

1.LG Display Haiphong, registered by South Korean LG Display, US$1.5 billion. OLED screens for mobile devices.

2.Amata Long Thanh City in Dong Nai province, US$309.3 million, registered by a Thai investor.

3.Samsung Research & Development Center, US$300 million, registered by Samsung Electronics Vietnam.

4.The wind power plant in Tra Vinh (second phase), US$247.6 million.

5.Midtown project, US$225.62 million, to be developed by an investor from Cayman Islands.