Japan Surpasses Singapore to Become Second Largest Investor in Vietnam

With a Japanese-invested gas pipeline project, Japan has surged to become the second largest investor in Vietnam since the start of this year.

Japanese companies pledged to invest $1.86 billion in Vietnam year to April 20, turning the Northeast Asian country the second biggest investor in Vietnam, according to statistics of the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

A Japanese company has partnered with PetroVietnam and PV Gas Corp to build and operate a $1.27 billion pipeline that will bring gas ashore in the southern province of Kien Giang.

Meanwhile, South Korea remained at the top among countries and territories investing in Vietnam in the four-month period, with a total of $4.05 billion. Singapore, which occupied the second highest place last month, followed with $1.1 billion.

The FIA said that foreign direct investment (FDI) pledges in the period increased 40.5% year-on-year to $10.95 billion, including new approvals of $4.88 billion, down 4%, and additional funds to existing projects of $4.36 billion, up 241.8%.

Notably, foreign injected $1.35 billion through capital contributions and stake purchases at companies in Vietnam in the period, soaring 106.8% from a year earlier.

Thanks to an additional injection worth $2.5 billion of Samsung Display, Bac Ninh remained the most invested locality in Vietnam. The runners-up were Binh Duong with $1.53 billion and Kien Giang with $1.28 billion. 

Actual FDI in Vietnam rose 3.2% year-on-year to $4.8 billion, the agency added.

Last year, Vietnam received a record high of $15.8 billion in foreign investment.

Tuan Minh / BizLIVE