NEWLY-REGISTERED FDI IN THE FIRST EIGHT MONTHS SOARED BY 16.3 PER CENT

Newly- and additionally-registered foreign direct investment (FDI) capital increased in the first eight months, while capital contributions and share purchases dropped remarkably.

The total newly-registered and added capital, as well as capital contributions and share purchases in the first seven months of 2021, amounted to nearly $19.1 billion, down 2.1 per cent on-year, according to the Ministry of Planning and Investment's Foreign Investment Agency.

A total of 1,135 projects (down 36.8 per cent on-year) received new investment certificates, with a total of nearly $11.4 billion (up 16.3 per cent on-year).

Almost 640 projects (down 11 per cent) asked to adjust capital by adding a total of $5 billion (up 2.3 per cent on-year).

Additionally, capital contributions and share purchases also decreased against the corresponding period last year, with 2,720 instances (down 43.4 per cent) and a total investment of $2.81 billion (down 43.4 per cent).

In the first eight months, Singapore led the 92 countries and territories investing in Vietnam with a total investment sum of $6.2 billion, making up 32.5 per cent of the total investment. Japan ranked second with $3.2 billion (16.8 per cent) while South Korea ranked third with $2.4 billion (12.7 per cent).

Most capital arriving from Singapore and Japan went into newly-registered projects, making up 79.4 and 73.9 per cent of FDI inflows, respectively, the Foreign Investment Agency highlighted.

As of August 20, foreign-invested projects have disbursed $11.58 billion, a rise of 2 per cent on-year. The pandemic has halted or declined the capacity of numerous foreign-invested factories. The realised FDI capital in August was reduced by 12.2 per cent on-year, and by 14.3 per cent on-month.

The export turnover of foreign-invested enterprises (FIEs) increased during the period, reaching $156.9 billion, up 25.5 per cent on-year (including crude oil) and $155.9 billion (excluding crude oil), up 25.9 per cent on-year, equivalent to around 73.8 and 73.3 per cent, respectively, of the country's total export turnover.

The import turnover of FIEs is estimated at $140.2 billion, up 36.4 per cent on-year, making up 64.8 per cent of the country's total import turnover. In the first eight months, the trade surplus of the sector was estimated at $16.7 billion (including crude oil) and $15.6 billion (excluding crude oil). This has offset part of the $20.4 billion trade deficit of local businesses.

Source: VIR