Vietnam attracts nearly 16.8 bln USD in FDI in eight months

ABO/NDO- Vietnam raked in nearly 16.8 billion USD in foreign direct investment (FDI) as of August 20, down 12.3% year-on-year, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

In the period, a remarkable decrease was seen in the value of newly-registered capital, down 43.9% to 6.35 billion USD. Meanwhile, additional capital injected into existing projects rose by 50.7% to 7.5 billion USD; and capital contributions and share purchases was up 3.6% to 2.9 billion USD.

Experts said that although Vietnam is still assessed as an attractive destination, the current world developments such as Russia-Ukraine tensions, supply chain disruptions and escalating inflation have remarkably affected FDI influxes into the country and other Southeast Asian nations.

During January-August, 12.8 billion USD of foreign-invested projects was disbursed, up 10.5% year-on-year, signaling foreign investors’ confidence in Vietnam’s investment prospects in the coming time.

Illustrative image (Photo: VNA).

Processing and manufacturing continued to lure the largest FDI capital, with 10.7 billion USD, accounting for 63.9% of the total. It was followed by real estate business, with over 3.3 billion USD, making up 19.9% of the total.

Singapore topped the list of the 94 nations and territories pouring capital in Vietnam in the period, with 4.53 billion USD, accounting for 27% of the total. It was followed by the Republic of Korea and Japan, with nearly 3.5 billion USD and 1.49 billion USD, respectively.

Ho Chi Minh City attracted the largest capital, with more than 2.7 billion USD, making up 16.1% of the total, followed by Binh Duong with nearly 2.64 billion USD, and Bac Ninh nearly 1.75 billion USD.

As of August 20, the country had over 35,500 valid projects totaling over 430 billion USD. Meanwhile, disbursement is estimated at 264.4 billion USD, equal to 61.5% of the total valid registered capital.

In the first eight months of this year, the foreign-invested sector reported an export value of 184.66 billion USD (including crude oil), up 17% year-on-year and accounting for 73.9% of the total.

(Source: NDO)