FDI inflows to Ho Chi Minh City dip over COVID-19 worries in first seven months

August 17, 2021 | 15:34

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Following the worst COVID-19 outbreak in the country this year, foreign direct investment (FDI) capital flowing into Ho Chi Minh City in the first seven months of 2021 dipped to $1.78 billion, down 25.1 per cent against last year's period.

The figures were revealed in the latest report on the socio-economic situation in July and the first seven months of the year. As of July 20, the city attracted $1.78 billion in FDI, a decline of 25.1 per cent on-year.

Around 345 new projects were granted investment registration certificates in the period with the total registered capital of over $284.5 million, down 42.3 per cent in quantity and 20.1 per cent in capital compared with the corresponding period a year prior.

Meanwhile, 98 existing projects adusted foreign investment capital with an additional $522.5 million, a decrease of 13.3 per cent on-yer in the number of projects, but nearly double the capital amount against the year prior.

In addition, there were 1,438 instances of capital contribution and share purchases by foreign investors, with $975 million, a 46.2 per cent drop on-year.

Singapore took the lead in the city's FDI rankings with the registered investment capital of nearly $612.3 million, followed by Japan ($321.9 million), South Korea ($223.4 million), and the Netherlands ($137.6 million).

The manufacturing and processing sector attracted the largest proportion of FDI in the first seven months with $440.6 million, followed by trade ($383.1 million), real estate ($349.7 million), and science-technology ($350.9 million).

Ho Chi Minh City is among the leading FDI recipients in Vietnam. In the first seven monhts, Ho Chi Minh City ranked second in Vietnam's FDI attraction with a total registered capital of nearly $1.8 billion, trailing behind Long An. Since the resurgence of the COVID-19 pandemic, the city has become the largest pandemic area of Vietnam, dampening the FDI outlook in the coming time.

By Thanh Van

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