HCMC attracts over US$1 billion FDI Capital in FDI in Jan-Feb

VGP - The country's biggest economic hub lured more than US$1.02 billion in foreign direct investment (FDI) in the first two months of 2019, according to the Ministry of Planning and Investment.

March 12, 2019 5:59 PM GMT+7

A corner of Phu My Hung Urban Area in District 7, Ho Chi Minh City

Vice Chairman of the municipal People’s Committee Le Thanh Liem said that in 2018 the city received more than US$7 billion in FDI, including US$ 6 billion registered in the form of capital contributions and purchases of shares of local enterprises.

The number and value of FDI in M&A (merger and acquisition) projects increased significantly in the last few years, from US$1.5 billion in value in 2016 to US$3.68 billion in 2017, and to US$6 billion in 2018.

Investment in M&A projects totals more than US$10 billion, accounting for 22% of the total FDI mobilised by HCM City since 1988.

Foreign investors favour M&As because of the simple investment procedures and favourable conditions, an official from the HCM City Department of Planning and Investment said.

M&A deals do not require investment registration certificates from investors, he added.

In January, the city received registration for FDI of more than US$745 million, the largest amount of FDI for any locality in the country.

It included US$32.72 million investment in 68 new FDI projects, and additional investment of US$4.7 million for 11 operational projects.

In addition, Ho Chi Minh City approved 191 cases of foreign capital contributions to purchase shares of local businesses (from local shareholders) with total value of more than US$452 million.

By Vien Nhu