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Sunday, July 21, 2024

Foreign investment up over 9% this year

The Saigon Times

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HCMC – Vietnam had attracted some US$31.2 billion in foreign investment in the year to December 20, up 9.2% year-on-year, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

Of the total, newly registered and additional capital continued rising, while investment through capital contributions and stake acquisitions inched down against the same period last year.

During the period, foreign investors registered to inject over US$15.2 billion into over 1,730 projects, up 4.1% in the total pledged capital year-on-year but tumbling by 31% in the number of new projects.

The period also saw 985 operational foreign direct investment projects revise up their investment by a total of over US$9 billion, down 13.6% in the number of projects but soaring by 40.5% in capital over the same period last year.

Besides, foreign investors conducted some 3,800 transactions to contribute funds and acquire shares in local firms with total capital of some US$6.9 billion, dropping 38.2% and 7.7% year-on-year, respectively.

The agency attributed the decrease in the number of projects to Vietnam’s selective investment attraction policy that limits small-scale projects or ones with a low added value.

The agency said that entry restrictions and requirements for prolonged quarantine during the Covid pandemic hindered foreign experts and project development teams from entering Vietnam, leading to a drop in the number of newly registered projects in the country.

Foreign investors poured capital into 18 of 21 national economic industries in Vietnam, with the processing and manufacturing sector taking the lead in investment capital at US$18.1 billion, accounting for 58.2% of the total registered capital.

The electricity production and distribution sector came second with over US$5.7 billion, representing 18.3% of the total.

As many as 106 countries and territories invested in Vietnam this year. Singapore was the biggest investor with over US$10 billion, followed by South Korea with some US$5 billion and Japan with nearly US$3.9 billion.

Haiphong City was the largest recipient of foreign investment with some US$5.3 billion, a 3.5-fold year-on-year increase, followed by Long An Province with US$3.8 billion and HCMC with US$3.7 billion.

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