FDI disbursements hit US$16.5 bil. in 11 months

Updates from the Viet Nam Foreign Investment Agency under the Ministry of Planning and Investment revealed that data as of November 20, showed newly registered FDI capital hit nearly US$15.8 billion, down 20.3% year on year.

With US$7.4 billion in additional funding to existing projects, total FDI pledges in the January-November period were estimated at US$23.2 billion.

The manufacturing sector remained the largest recipient of FDI, accounting for more than 47.1% of total commitments, followed by property trading at 33% and other sectors at 19.9%.

Notably, foreign capital flow to buy stakes in Viet Nam rose by 44.4% to total $7.6 billion.

A breakdown of capital sources shows that Japan was the largest investor with approximately US$6.1 billion while the Republic of Korea and Singapore came second and third with US$3.4 billion and US$1.1 billion, respectively.

Ha Noi was the top destination for FDI flow which attracted $6.3 billion in registered capital. HCM City ranked second with registered capital of $5.6 billion, then Hai Phong with $2.49 billion registered capital.

Pledges of US$1.8 billion to Ba Ria-Vung Tau earned the province the second position while Binh Duong province was placed third with US$953 million.

Conversely, Viet Nam invested a total of US$357 million in overseas projects in the first 11 months of the year, mainly in finance-banking, agriculture and manufacturing.

The Republic of Korea was the largest investor in Viet Nam with total registered capital of $62.2 billion, so far and Japan came second with total registered capital of $56.4 billion.

After about three decades of attracting FDI, Viet Nam was now more selective, targeting to attract quality capital flow into technology-rich and environmentally-friendly industries and boost the development of local companies through setting up value chains.

By Vien Nhu