Despite a 4.3 per cent reduction in the volume of foreign investment inflows into Vietnam in the first half of the year, experts said there are positive signs when looking into the structure of the investment.
|Producing electronic components at the Indian-funded Minda Vietnam Auto Components Co., Ltd in Vinh Phuc province. (Photo: VNA)
Hanoi– Despite a 4.3 per cent reduction in the volume of foreign investment inflows into Vietnam in the first half of the year, experts said there are positive signs when looking into the structure of the investment.
Out of more than 13.43 billion USD worth of foreign investment poured into Vietnam in the first six months of this year, newly-registered capital reached almost 6.5 billion USD, accounting for 48.3 per cent of the total, up 31.3 per cent year on year.
The value of capital contribution and share purchase deals surged 79 per cent to over 4 billion USD, accounting for 29.9 per cent.
Only additional capital for existing projects showed a reduction of 57.1 per cent, but the number of projects raising their capital went up 29.8 per cent.
General Director of the General Statistics Office (GSO) Nguyen Thi Huong said those figures reflect the confidence of foreign investors in the stable macro economic policy and safe investment environment in Vietnam.
New projects are still concentrated in localities with advantages in investment attraction, good infrastructure, stable human resources, drastic efforts in administrative reform and dynamic investment promotion, such as Hanoi, Ho Chi Minh City, Bac Giang, Binh Duong, Hai Phong, Bac Ninh and Dong Thap.
Hanoi was the leading destination of foreign investors in the reviewed period with 2.26 billion USD, higher than the figure of the entire 2022.
HCM City also recorded a surge in the number of new FDI projects (69.1 per cent) and a 3.6-time increase in capital contribution and share purchase.
With high expectation about FDI attraction this year, Director of the Foreign Investment Agency Do Nhat Hoang said the country will continue to improve its business and investment environment, focusing on administrative procedures following licensing, and issue policies to attract investment into fields with great potential for breakthroughs such as high technology, semiconductor and innovation.
|LG Innotek in Haiphong invests further $1 billion
LG Innotek, a producer of core components for mobile devices, automotive displays, and semiconductors, will invest $1 billion into building a new manufacturing facility for advanced smartphone camera modules and other optical products in the northern port city of Haiphong.
|FDI disbursement recovering in H1
In the first half of the year, foreign investment capital disbursement was $10.02 billion, a slight increase of 0.5 per cent on-year. However, the total registered capital fell to $13.43 billion.
|FDI flows into Vietnam forecast to increase in H2: Experts
The flows of foreign direct investment (FDI) into Vietnam are forecast to increase in the second half of the year as the downturn has been improved in recent months, experts have said.
|Hung Yen boasts FDI investment appeal
Foreign direct investment (FDI) has become Hung Yen’s highlight, making significant contributions to the province’s socioeconomic development by creating jobs and increasing revenue for the provincial budget.