NEWLY-REGISTERED FDI UP SLIGHTLY IN FIRST SEVEN MONTHS

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

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 $16.7 billion, down 11.1 per cent on-year, according to the Ministry of Planning and Investment's Foreign Investment Agency.

A total of 1,006 projects (down 37.9 per cent on-year) received new investment certificates, with a total of nearly $10.13 billion (up 7 per cent on-year).

561 projects (down 9.4 per cent) asked to adjust capital by adding a total of $4.54 billion (down 3.7 per cent on-year).

Additionally, capital contributions and share purchases also decreased against the corresponding period of last year, with 2,403 instances (down 46.1 per cent) and a total investment of $2.05 billion (down 55.8 per cent).

In the first seven months, Singapore led the 86 countries and territories investing in Vietnam with a total investment sum of $5.92 billion, making up 35.4 per cent of the total investment. Japan ranked second with $2.54 billion (15.2 per cent) while South Korea ranked third with $2.2 billion (13.1 per cent).

Most capital arriving from Singapore and Japan went into newly-registered projects, making up 81 and 68.3 per cent of FDI inflows, the Foreign Investment Agency report highlighted.

As of July 20, foreign-invested projects have disbursed $10.5 billion, a rise of 3.8 per cent on-year, which reflects that the FDI sector has remained strong during the pandemic.

The export turnover of foreign-invested enterprises (FIEs) increased during the period, reaching $135.8 billion, up 28.9 per cent on-year (including crude oil) and $135 billion (excluding crude oil), up 29.3 per cent on-year, equivalent to around 73.7 and 73.2 per cent of the country's total export turnover.

The import turnover of FIEs is estimated at $120.9 billion, up 37.6 per cent on-year, making up 64.7 per cent of the country's total import turnover. In the first seven months, the trade surplus of the sector was estimated at $14.9 billion (including crude oil) and $14.1 billion (excluding crude oil). This has offset part of the $17.4 billion trade deficit of local businesses.

Source: VIR