FDI disbursement maintains momentum

Dzung Trieu law firm

FDI businesses continue to do well in Vietnam

A report from the Foreign Investment Department revealed that new and supplementary foreign direct investment (FDI) capital and the number of new and supplementary FDI projects had declined sharply in the first six months of this year. However, the amount of disbursed FDI capital had remained stable and even increased by a slight 1.9 percent over the same months last year, marking a highlight in Vietnam's FDI picture in the first six months of this year.

The Ministry of Planning and Investment said that FDI attraction in 2012 would focus on boosting FDI capital disbursement, rather than increasing the total amount of registered FDI capital. Specifically, disbursed FDI capital reached US$5.4 billion in these months or 101.9 percent of what was a year ago.

The report also indicates that Vietnam had attracted 452 new FDI projects worth US$4.762 billion (accounting for 75.3 percent of what was a year ago) and permitted 123 ongoing projects to increase capital by US$1.622 billion (50.5 percent). In total, Vietnam attracted US$6.384 billion worth of FDI capital in these months representing 72.3 percent of the amount for the same period last year.

Of this, the processing and manufacturing sector attracted 193 new projects and 95 supplemented projects increasing the amount of new and supplementary FDI capital to US$4.02 billion. Following it was the real estate sector with four new projects and two supplemented projects increasing total new and supplementary FDI capital to US$1.57 billion. The wholesale, retail and repair sector took third place with 87 new projects and three supplemented projects increasing the total new and supplementary FDI capital to US$20.7 million.

Forty-three foreign countries and territories invested in Vietnam in the first six months of this year. Of these, Japan took the lead with 126 new projects and 38 supplemented projects increasing its total new and supplementary investment capital to US$4.16 billion. Next was the British Virgin Islands with seven new projects and eight supplemented projects increasing its total new and supplementary investment capital to US$484 million. The Republic of Korea took third place with 90 new project and 22 supplemented projects increasing its total new and supplementary investment capital to US$480.8 million.

Also in these months 45 provinces and cities attracted FDI capital, the top four being Binh Duong with 42 new projects, 20 supplemented projects and US$1.788 billion worth of new and supplementary investment capital, Dong Nai 31, 25 and US$942.4 million, Hai Phong 13, 14 and US$934.8 million, and Ho Chi Minh City 140, 7 and US$629 million, respectively.

Notably, FDI businesses maintained the export and import growth in the first six months of this year despite the numerous domestic and global economic difficulties. Exports from the FDI sector reached US$32.65 billion in these months making up 137.3 percent of what was a year ago (not including crude oil, exports were US$28.88 billion and 141.5 percent, respectively). Import purchases stood at US$27.98 billion making up 126.1 percent of what was a year ago. FDI businesses continue to do well in Vietnam.

Nguyen Hoa/VEN