China is out of the top three largest FDI investors in Vietnam

Some business conditions are revised in rewording way
16 January, 2018
Position: Lawyer / investment consulting specialist
26 September, 2018

China is out of the top three largest FDI investors in Vietnam

As reported by the Ministry of Planning and Investment (MPI), the first two months, Vietnam attracted about 3.3 billion USD, disbursements reached 1.7 billion USD. It is worthwhile saying that China despite puts money to buy more shares of Vietnamese enterprises but still bounced out of three biggest investors in Vietnam in the first two months.

According to the latest report of the Ministry of Planning and Investment’s Foreign Investment Department, in the first two months of 2018, the total registered capital of foreign investors was $ 3.34 billion, by 98.2% over the same period in 2017, the project has disbursed $ 1.7 billion, up 9.7% over the same period in 2017.

This is a remarkable figure showing that the attractiveness of foreign investment in the country is rising strongly, which is a good sign for a globalized economy, solving many difficulties in the country, especially the problem of workers.

Currently there are 16 sectors of interest to investors, in which the processing and manufacturing industry still attracts the most investors with the total capital of over $ 1.8 billion, accounting for 54.6% of the total registered capital. Processing and manufacturing industries are two industries in which Vietnam has strengths because of natural resources and abundant human resources. Other sectors such as construction and real estate are still in second and third place respectively.

Currently, Vietnam has investors from more than 60 countries and territories poured capital. South Korea is the No. 1 investor, with $ 851.2 million in capital; Investors from the UK ranked second with a total investment of approximately $ 450 million and Singapore ranked third with a total registered capital of $ 418.5 million, accounting for 12.5% of total capital.

In the past two months, China has remained among the top 10 direct investment partners in Vietnam, however, its investment capital is not big, mainly raising capital and acquiring shares of Vietnamese enterprises.

A major feature of FDI attraction in the beginning of 2018 is that very few large capital projects. Apart from the five key projects with the capital of $ 80 million to $ 150 million invested by Singaporean and Korean investors in Vietnam, the average of projects with an average capital of less than $ 10 million. Vietnam is expanding to attract foreign investors, however it seems that foreign investors are quite cautious, only some investors from big and strong partners are bold. This is because Vietnam is a relatively new market.

Specifically, as of the end of February 2018, the country has 411 new projects with a total registered capital of $ 1.39 billion, 133 projects registered to adjust investment capital with a total registered capital increase of 700,3 million USD; 873 times of capital contribution, share purchase of foreign investors with total capital contribution of $ 1.25 billion.

Thus, the new project capital is about $ 3.4 million per project; increased capital is about $ 5.2 million per project; The share capital of foreign investors is about $ 1.4 million per project.

Ho Chi Minh City is the locality attracting the most foreign investment capital with a total registered capital of 1.05 billion USD, followed by Binh Duong and Ninh Thuan.

An Linh Dan Tri Express