Vietnam’s FDI volumes boom in 2016’s first quarter

March 24, 2016 | 16:57

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In the first quarter of 2016, the total newly-registered foreign direct investment (FDI) capital in Vietnam reached $2.74 billion, up 125.2 per cent on-year, thanks to numerous projects worth hundreds of millions of dollars, according to the Ministry of Planning and Investment’s statistics released on March 23.

Notably, in the first quarter of 2016, Vietnam licensed approximately $4.03 billion in FDI, up 109 per cent on-year, comprising $2.74 billion to 473 newly-registered projects and $1.29 billion in added capital to 203 existing projects.

The boom in attracting FDI is thanks to numerous large-scale projects. Four outstanding projects a worth particular mention due to size and economic significance. The first is a Taiwanese investor’s $220 million paper manufacturing factory in the southern province of Tien Giang. The second is a $210.6 million computerized lottery project in Hanoi, a joint venture between Malaysian Berjaya Corporation Berhad and Vietnam Computerized Lottery One Member Co., Ltd. The third is Korean Taekwang Industrial’s $171 million shoe-manufacturing factory in the southern city of Can Tho. The fourth is Zincox Resources Public Limited Company’s $115 million steel mill emissions processing facility in the southern province of Ba Ria-Vung Tau.

Foreign investors are involved in 19 sectors of the Vietnamese economy. In the first quarter, the majority of them were clustered in the processing and manufacturing sector, with 216 projects worth a total of $2.9 billion, making up 72.2 per cent of the total FDI flow into the country. The second most preferred sector is real estates, with 11 projects worth $239.8 million, making up 6 per cent of the total FDI volume.

South Korean enterprises became the largest foreign investors registering new projects in Vietnam in the first quarter of 2016, with $888.6 million in capital, equalling 22 per cent of the total newly-registered capital. The runners-up are Singapore and Taiwan with the total capital of $554 million and $465.6 million, respectively.

In a provincial break-down of FDI, Dong Nai attracted the largest amount of FDI with an impressing $585 million to 60 projects, followed by Bac Ninh and Binh Duong provinces with the total capital of $398 million and $371 million, respectively.

In the first quarter of 2016, disbursed FDI capital reached $3.5 billion, up 14.8 per cent on-year.