FDI inflows continue on downward trajectory

FDI restructuring is in the works to guarantee quality

According to the Ministry of Planning and Investment's Foreign Investment Agency, Vietnam counted total FDI inflows of about $18.7 billion in the first eight months of the year, equivalent to 84.7 per cent of the previous year's total.

Of this, $7.12 billion was poured into 1,355 newly-licensed projects, up 11.8 per cent on the number of projects last year but a sharp reduction of 43 per cent in value.

Another $8.3 billion was added to 769 projects currently underway, a rise of 29.9 per cent in value and 13.4 per cent in quantity. Overseas investors also poured almost $3.3 billion into around 2,700 share purchase deals, a slight increase of 1.9 per cent over the same period last year.

FDI disbursement climbed well by 16.2 per cent on-year, to around $15.4 billion.

Among the 18 sectors receiving funds in the first nine months, processing and manufacturing took the lead with more than $12.1 billion, accounting for 64.6 per cent of total FDI. This was followed by real estate ($3.5 billion), science, technology, and professional activities ($677 million), and retail and wholesales ($618 million).

Singapore led the 97 countries and territories investing in Vietnam in the first nine months with a total investment capital of around $4.75 billion, followed by South Korea ($3.8 billion), and Japan ($1.9 billion).

Ho Chi Minh City attracted the highest amount of FDI in these nine months with just under $3 billion, followed by Binh Duong with $2.7 billion, and Bac Ninh with $1.8 billion.

The export turnover of foreign-invested enterprises (FIEs) continued increasing by 18.4 per cent on-year to about $210.8 billion (including crude oil), or $209.1 billion (excluding crude oil), making up about 74 per cent of the country's total export value.

Their import turnover was estimated at around $181.8 billion, up 13.8 per cent and accounting for 65.2 per cent of the total.

FIEs' trade surplus was $29 billion (including crude oil), or $27.3 billion (excluding crude oil), in the first nine months, while local businesses reported a trade deficit of $23.3 billion.

The almost 35,800 valid foreign-invested projects were accumulated across the country with the total registered capital of more than $431.5 billion. Their disbursement was about $267 billion, equivalent to 61.9 per cent of the valid registered capital.