Vietnam reports first billion-dollar FDI projects of 2018

The $4.2 billion smart city invested by Sumitomo and BRG

According to information published by the Ministry of Planning and Investment, in the first six months of 2018, total newly and additionally registered capital and capital in M&A by foreign investors was $20.33 billion, up 5.7 per cent compared to the same period in 2017.

Notably, as of June 20, 2018, Vietnam granted the investment certificate to 1,366 newly-registered projects with the total investment capital of $11.8 billion, equalling 99.7 per cent of the figure from last year.

Besides, there are 507 added-capital projects with the total investment capital of $4.43 billion, equalling 86.2 per cent of the figure from last year.

Meanwhile, 2,749 M&A deals were signed with the total investment capital of $4.1 billion, up 82.4 per cent compared to last year’s figure.

Foreign investors invested in 17 industries nationwide. The processing and manufacturing industry still kept the top position with a total of $7.91 billion, equalling 38.9 per cent of the total foreign direct investment (FDI) inflows. The runner-up was the real estate sector with $5.54 billion, equalling 27.3 per cent of the total.

In the first half of this year, there were 87 countries and territories having investment projects in Vietnam. Japan ranked first with the total investment capital of $6.47 billion, making up 31.8 per cent of the total.

South Korea ranked second with the total registered investment capital of $5.06 billion, accounting for 24.9 per cent, and Singapore ranked third with the total registered investment capital of $2.39 billion, capturing 11.8 per cent.

Regarding cities and provinces receiving FDI, foreign investors poured capital into 55 cities and provinces across the country. Hanoi overcame Ho Chi Minh City to become the place attracting the largest investment capital volume with the total of $5.87 billion.

Ho Chi Minh City ranks second with $3.68 billion. Besides, Ba Ria-Vung Tau ranked third for the first time, attracting the largest investment capital in the first six months with $1.93 billion.

Especially, in June a number of billion-dollar projects were announced.

The first is $4.2 billion smart city project in Vinh Ngoc commune, Hanoi’s Dong Anh district, funded by the joint venture formed between Japan's Sumitomo and Vietnam's BRG.

President and CEO of Sumitomo Corp., Masayuki Hyodo affirmed that the project could commence work on the first phase by late 2018 or early 2019, building the initial components, focusing on infrastructure for clean water supply.

The second one is the $1.25 billion capital addition to Laguna Lang Co Integrated Resort.

On May 25, Laguna Lang Co, one of Asia’s largest integrated resorts managed by international hospitality operator Banyan Tree, officially received its casino license from the Vietnamese government. Additionally, the resort increased its total investment capital to $2 billion.

The project was officially licensed on May 25, however, the local authorities, including the Foreign Investment Agency (FIA), did not add it to the list of foreign invested projects in the first five months of this year because the list is closed on the 20^th day of every month.