Vietnam’s 1st quarter FDI plummets by half

Thanh Nien News

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Production at a foreign business in Ho Chi Minh City / PHOTO COURTESY OF TBKTSG
New foreign direct investment of only US$3.33 billion has been licensed in Vietnam this year as of March 20, down 49.6 percent year on year, Thoi bao Kinh te Saigon (Saigon Times) has reported.
The report quoted the General Statistics Office as saying that the figure included 252 new projects with total investments of over $2.04 billion.
The remaining was invested in 82 existing projects.
According to the office, the decrease took place even though Vietnam saw an increase in FDI inflows in March from the first two months - $1.79 billion compared to a total of $1.54 in January and February.
Analysts explained the fall as a result of the absence of big projects.
They said that last year Vietnam licensed Samsung Electronics Vietnam to build a $2-billion plant in the northern province of Thai Nguyen, while the Nghi Son refinery complex in the north-central province of Thanh Hoa had its capital increased by $2.8 billion.
On the other hand, foreign investors have disbursed $2.85 billion in the first quarter this year, an increase of 5.6 percent year on year, the report said.
It said the processing and manufacturing sectors accounted for 69.9 percent of FDI, followed by real estate accounting for 8.6 percent.
Ho Chi Minh City attracted 33.6 percent of FDI, followed by the northern province of Hai Duong, and the southern province of Binh Duong.
In the meantime, South Korea is the biggest investor, followed by Hong Kong and the British Virgin Islands.

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