FDI INFLOWS ROSE BY 13.1 PER CENT IN H1

In the first half of the year, foreign direct investment (FDI) reported an increase of 13.1 per cent, while FDI disbursement also surged by 8.2 per cent on year.

According to the latest report of the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, the total registered FDI in the first half of the year was $15.2 billion, up 13.1 per cent.

A total of 1,538 new projects were granted investment registration certificates in the first half, with the total registered capital of over $9.54 billion, up 18.9 per cent in the number of projects and up 46.9 per cent on-year in terms of capital.

The adjusted capital of almost 592 ongoing projects stood at about $3.95 billion, down 6.3 per cent on-year in number but up 35 per cent in capital terms.

There were approximately 1,420 capital contributions and share purchases as of June 20, equivalent to $1.7 billion, showing a decrease of 57.7 per cent on-year.

The FIA said that the amount of adjusted investment in June increased significantly compared to the previous months, with nearly $1.9 billion, accounting for 47.3 per cent of the total adjusted investment capital in the first half.

This contributed to the surge by 35 per cent of total adjusted investment in the first half, instead of consecutively decreasing compared to the same period in previous months.

“Numerous large projects in semiconductors, energy (production of batteries, photovoltaic cells, silicon bars), components, electronic products, and high value-added products have been newly invested and expanded capital in the first half,” the FIA reported.

The FIA report also indicated that FDI was seen in 18 out of the 21 economic sectors in the first half. Of those, processing and manufacturing took the lead with $10.69 billion, capturing 70.4 per cent of the total, and saw a 26.3 per cent higher than compared to the same period in 2023.

Real estate ranked second with $2.47 billion, making up 16.3 per cent of the total. This was followed by wholesale and retails, and professional, science and technologies with $614 million and $452 million, respectively.

Singapore is the top among 84 countries and territories investing in Vietnam with close to $5.58 billion, accounting for 36.7 per cent of FDI into the country in the first half of 2023, and representing an increase of 86 per cent on-year.

Japan came second with $1.73 billion, followed by Hong Kong, South Korea, and China.

Foreign-invested projects still choose cities and provinces that have more advantageous infrastructure development, human resources, and clear administrative procedures, such as Bac Ninh ($2.58 billion in total registered investment), Ba Ria-Vung Tau ($1.54 billion), and Quang Ninh ($1.36 billion).

Export turnover of FDI sector (including crude oil) was estimated at $136.73 billion or $135.73 billion (excluding crude oil), up 12.3 per cent on year, making up 72.2 or 71.6 per cent of the total export turnover of the country.

Import turnover of FDI was estimated at $114.11 billion, up 15.5 per cent on year, and accounting for 63.3 per cent of the total import turnover of the country.

In the first half of the year, the trade surplus of the FDI sector was $22.62 billion, while local businesses reported a trade deficit of $13.3 billion.

Source: VIR