Tuesday,  Jun 19, 2018,10:13 (GMT+7) 0 0
Fresh FDI capital pledges drop sharply
Hung Le
Wednesday,  May 30, 2018,18:18 (GMT+7)

Fresh FDI capital pledges drop sharply

Hung Le

New FDI capital in the five-month period totaled US$7.15 billion, a year-on-year drop of 30.8%, according to the General Statistics Office of Vietnam - PHOTO: TL

HCMC – New foreign direct investment (FDI) approvals in the January-May period fell by a staggering 30% from a year earlier due to the absence of new mammoth projects, according to the General Statistics Office of Vietnam.

Data shows more than 1,000 FDI projects had been approved in the year to May 20 with total registered capital of US$4.65 billion, up 14.6% and down 16.8% respectively against the year-ago period. This period also saw roughly 400 operational FDI projects revising up their investment capital by nearly US$2.5 billion, down a whopping 47.4%.

In all, new FDI capital in the five-month period totaled US$7.15 billion, a year-on-year drop of 30.8%. The decline is attributable to the fact that no billion-dollar projects got the go-ahead in the period, according to the State agency.

However, foreign investments via capital contributions and share acquisitions in the period were up strongly.

In particular, foreign investors conducted 2,340 transactions to contribute capital and acquire stakes in local firms with a combined value of US$2.75 billion, up a hefty 53.5% from a year earlier.

They included 1,117 transactions to raise chartered capital of companies worth US$1.58 billion, and 1,224 deals worth US$1.17 billion to buy domestic stakes without increasing chartered capital.

Overall, foreign investment pledges reached US$9.9 billion, while FDI inflows amounted to an estimated US$6.75 billion, the latter figure rising 9.8% year-on-year.

New FDI capital was mainly poured into the processing and manufacturing sector with US$2.29 billion, accounting for 49.1% of the total. The sector also made up the biggest proportion of capital contributions and share acquisitions, at 26.5% and US$729 million.

Meanwhile, the real estate sector attracted US$623.3 million of FDI, or 13.4% of the total.

Among 50 countries and territories with fresh investment projects in Vietnam in the period, South Korea took the lead with US$1.02 billion (21.9%), followed by Japan with US$904.8 million (19.4%), Thailand with US$536.2 million (11.5%), and Singapore with US$503 million (10.8%).

In a related development, Vietnamese investors had 48 new outbound investment projects worth US$144.7 million approved, and injected a combined US$40 million into their operational projects abroad in the same period, according to statistics of the Foreign Investment Agency.

The financial and banking sector took the first place with US$105.8 million, making up 57.3% of the total. The processing and manufacturing sector came second with US$25.4 million or 13.7%, followed by the agro-forestry-fisheries sector with US$21 million or 11.4%.

Vietnamese companies have invested in 24 countries and territories, with Laos as the top destination, followed by Cambodia and Cuba.

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