Billion-dollar projects bolster foreign capital

June 01, 2016 | 14:14

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Vietnam has experienced an impressive boost in its foreign direct investment (FDI) capital during the first five months of this year thanks to the presence of billion-dollar projects.

Photo source: kinhdoanhnet.vn

According to statistics of the Ministry of Planning and Investment published on May 25, in the first five months of 2016 Vietnam attracted $10.159 billion of FDI capital, up 136.4 per cent on-year.

Vietnam licensed 907 newly-registered projects with a total capital volume of $7.56 billion and 425 added-capital projects worth $2.59 billion, up 155.9 and 93.3 per cent compared to the same period in 2015, respectively.

In addition, the disbursed-capital amount was $5.8 billion, up 17.2 per cent on-year.

Foreign investors are involved in 19 sectors of the Vietnamese economy. In the first quarter, the majority was clustered in the processing and manufacturing sector, with 398 newly-registered projects worth $6.61 billion, making up 65.1 per cent of the total FDI flow into the country.

Information and telecommunications overcame the real estate sector to rank second in attracting FDI, with a total capital of $1.3 billion, equalling 12.8 per cent of the total FDI volume.

Hanoi ranked first in attracting FDI with $1.96 billion in 180 newly-registered and added-capital projects, making up 19.3 per cent of the country total. The runners-up are Haiphong with $1.71 billion and Dong Nai with $921.8 million, respectively.

The boom in attracting FDI is due to numerous large-scale projects. The first is LG Display’s $1.5 billion hi-tech screen (OLED) production factory in the northern port city of Haiphong’s Trang Due industrial park.

The second is a Luxembourgian investor’s VND1.248 trillion ($55.6 million) project to develop Hanoi’s information-telecommunication system.

The third is Samsung Electronics Vietnam (SEV)’s $300 million research and development (R&D) centre in Hanoi. SEV will develop a 21-storey building on a three-hectare land plot and employ 2,000 labourers in 2016, which will be bolstered up to 4,000 in the upcoming years. A total capital volume of $300 million will be disbursed within four years, including $50 million in the 2016-2017 period, $150 million in 2018, and the remaining $100 million in 2019.

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