Sunday,  Nov 18, 2018,19:20 (GMT+7) 0 0
HCMC draws over US$5 billion in FDI
By Thanh Thom
Wednesday,  Sep 5, 2018,19:22 (GMT+7)

HCMC draws over US$5 billion in FDI

By Thanh Thom

The photo shows an employee at work – PHOTO: QUOC HUNG

HCMC – From January to August this year, fresh foreign direct investment (FDI) in HCMC soared by 67% year on year to US$5.18 billion, according to a report on the socioeconomic performance of the city for August and the last eight months.

The city government had approved 640 FDI projects, worth more than US$558 million, up by 22% in number compared with the same period last year, according to the report prepared by the city's Department of Planning and Investment.

The processing and manufacturing sector saw the largest proportion of FDI projects (24.5%), followed by real estate (23%); wholesale, retail and automobile and motorbike repair (22.4%); and professional, scientific and technological activities (14.5%).

Foreign investors mainly came from South Korea, Singapore, Norway, Japan and Hong Kong.

Foreign investors injected more than US$480 million into 178 operational projects. In addition, they conducted 1,912 transactions to contribute capital and acquire stakes in local companies with a combined value of US$4.14 billion, up by 34.5% in number and 2.4 times in capitalization from a year earlier.

Meanwhile, during the period, the city recorded the establishment of over 28,000 companies, whose registered capital reached roughly VND350 trillion.

The new companies entered the retail and automobile and motorbike repair sectors (37%); construction (10%); science and technology, as well as consulting, design and advertising services (9.8%); the processing and manufacturing sector (9.5%); and real estate (7%).

The eight-month period also witnessed robust growth in a wide range of fields, including services, imports, exports and capital mobilization.

Growth in services

The total revenue of retail sales and services in August reached VND85.9 trillion (US$3.7 billion), down by 0.3% against the previous month but up by 14.5% from 2017.

The monthly decline was the result of seasonal factors – August is the end of the summer vacation. Lodging and catering services fell by 2.2%, while travel and tourism services declined by 2%.

Overall, the total revenue of retail sales and services between January and August jumped by 12.6% year-on-year to more than VND679.8 trillion (US$29.2 billion). The revenue of retail goods accounted for a staggering 64%, followed by the restaurant and hotel segment at 11%, the travel and tourism segment at 2% and other services at 22.7%.

The city saw an estimated 583,000 international tourists in August, up by 17% month-on-month. The eight-month figure was some 4.9 million, increasing by 17% compared with the same period last year and reaching 65.8% of the full-year target.

The local tourism sector earned some VND87.5 trillion (US$3.7 billion) in revenue during this period, growing by 16% year-on-year, while fulfilling 66.9% of the full-year target.

Imports, exports up

The city brought in US$3.5 billion in exports in August, up by 7.3% over the previous month. The total figure in the eight-month period was US$24.6 billion, a year-on-year growth of 6%. Popular export items included computers, electronic products and their spare parts, rice, vegetables and seafood.

Meanwhile, the city spent US$4.1 billion on imports in August, rising by 6.2% against July. The total import bill was estimated at US$30.7 billion during the January-August period, up 9.6% from a year earlier.

Local firms mainly purchased products such as machinery, equipment, tools and spare parts (up by 24.8%) and raw plastics (10.1%) from China and Malaysia.

High capital mobilization

Local credit institutions had mobilized capital worth an estimated VND2.15 trillion (US$92.4 billion) as of late August, up by 7.2% against end-2017 and 11.5% over the same period last year.

Deposits in Vietnam dong reached some VND1.905 trillion, making up a staggering 88.6% of the total, while those in foreign currencies were valued at VND245.5 trillion.

Besides this, outstanding loans amounted to VND1.955 trillion (US$83.9 billion), up by 11% against late 2017 and 17.9% against the year-ago period. Mid- and long-term loans accounted for 52.8% of the total, while the remaining comprised short-term loans, up by 11.4% and 10.5%, respectively.

Of this, outstanding loans in Vietnam dong reached VND1.776 trillion, or 90.8% of the total, while those in foreign currencies gained VND179 trillion.

Among the five priority groups, small- and medium-sized enterprises took the lead in obtaining short-term loans, worth more than VND104.9 trillion, or roughly 70.5%, followed by agriculture and rural development (VND25.4 trillion, 17.1%).

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