Foreign investors spend $3bn on capital contribution, stock in Vietnam in past year

August 09, 2016 | 09:49

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More foreign investors have been investing via capital contributions and stock purchases in Vietnam over the last year, the Foreign Investment Agency has said.

Between July 20, 2015 and July 20, 2016, foreign investors channeled a total of US$2.948 billion into contributing capital to, or purchasing stocks at, 3,141 businesses in the country, according to the agency.

This is the first time the Foreign Investment Agency has publicized information related directly to capital contributions and stock purchases by foreign investors outside of traditional reports on foreign direct investment (FDI).

Of the amount, nearly $1.9 billion has been focused on 1,709 companies whose foreign capital contribution has exceeded 50 percent of the charter capital or that operate within conditional investment sectors.

The rest has been directed to companies where foreign capital contribution accounts for less than 50 percent of the charter capital.

Real estate remains the most attractive destination for foreign capital, with a total foreign capital contribution of $350.1 million, accounting for 23.1 percent of the sector’s total.

Retail occupies second place, with 57 projects and a total foreign capital contribution of $318.9 million, or 21 percent of the entire amount.

Experts said that the statistics show a burgeoning rise in foreign capital contributions and stock purchases.

After the new Law on Investment came into effect on July 1, 2015, foreign investors have chosen capital contributions and stock purchases in order to enter the Vietnamese market quickly and develop their projects.

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