Foreign investment in M&A deals continues to increase

September 27, 2018 | 18:38

(0) user say

Despite a decrease in FDI volume, Vietnam continued to see soaring foreign investment capital in M&A deals in the first nine months of this year, with the total investment capital of $5.7 billion, up 36.8 per cent on-year.

foreign investment in ma deals continues to increase

Foreign investors remain interested in Vietnam

According to statistics published by the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, generally, in the first three quarters of 2018, foreign investors spent a total of $25.37 billion to register new and added capital as well as to contribute capital and purchase shares, which is a 99.6 per cent increase over the corresponding period of 2017.

Notably, as of September 20, 2018, the country granted investment certificates to 2,182 new projects, with $14.1 billion of newly registered capital, down 3 per cent on-year, and 841 capital adjustments with $5.5 billion, 82.1 per cent of the figure from last year.

Meanwhile, overseas players spent $5.7 billion on acquiring shares in Vietnamese companies with 5,275 deals, shooting up 36.8 per cent on-year.

Manufacturing and processing continues to be the most appealing sector by attracting $11.3 billion from January to September, accounting for 44.6 per cent of the total investment inflows. It was followed by real estate trading with $5.8 billion (23 per cent) and retail and wholesale with $2.1 billion (8.3 per cent).

Japan remained the leading foreign investor by pouring $7 billion into Vietnam during the period, making up nearly 28 per cent of the total FDI registered in the country. South Korea ranked second with $5.6 billion (22.4 per cent), while Singapore came next with $3.6 billion (14.4 per cent).

According to the FIA, foreign investors were present in 59 cities and provinces. The capitol lured in the largest share with $5.8 billion, accounting for 22.9 per cent. The southern economic hub of Ho Chi Minh City and the southern province of Ba Ria-Vung Tau were the runners-up with $4.2 billion (16.6 per cent) and $2.1 billion (8.5 per cent).

By Kim Oanh

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional