Vietnam’s 10-month FDI tumbles 20%

Vietnam attracted US$23.4 billion in foreign direct investment (FDI) in the January-October period this year, down by around 19.4% from the same period last year due to the adverse impacts of the Covid-19 pandemic, according to data from the Ministry of Planning and Investment.

Workers are seen at an FDI firm. Vietnam attracted US$23.4 billion in foreign direct investment (FDI) in the January-October period this year, down by around 19.4% from the same period last year - PHOTO: KY ANH

Of the figure, the newly registered capital reached US$11.6 billion, down 9.1% year-on-year, while the additional capital rose 4.4% at US$5.7 billion.

According to the Foreign Investment Agency under the ministry, the rise of additional capital came from the nearly US$1.4 billion poured into a petrochemical complex in Ba Ria-Vung Tau Province by a Thai investor and US$774 million into the West Lake urban center project by a South Korean firm.

During the period, 2,100 new foreign enterprises were licensed, down 32.1% from the previous year. The total registered capital reached US$11.66 billion, down 9.1% over the same period in 2019.

Regarding the additional capital, 907 FDI firms registered to inject more investment capital, down 20.8%.

For share purchases, over 5,400 enterprises reported funds contributed by foreign investors, down 27.4% year-on-year. The total value of capital contribution was US$6.11 billion, down 43.5%.

The processing and manufacturing sector was the biggest FDI earner with US$10.7 billion, accounting for 45.7% of the total investment capital.

Electricity production and distribution was second with US$4.8 billion, making up 20.5% of the total registered investment capital. Real estate, wholesale and retail got a total registered capital of nearly US$3.5 billion and US$1.4 billion, respectively, said the agency.

Singapore was Vietnam’s biggest investor with US$7.51 billion, accounting for 31.9% of the country’s total investment.

South Korea came second with a total investment of US$3.42 billion, accounting for 14.6%, followed by China with US$2.17 billion.

According to the agency, many foreign-invested firms are recovering or maintaining good business, indicating better growth in the last months of 2020.

The pandemic has greatly obstructed foreign investors' travel and new investment decisions. However, amid the strong decline in global investments, the results implied Vietnam’s attractiveness in the eyes of foreign investors, it added.