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Brief on foreign direct investment of the first quarter of 2018

Date 27/03/2018 - 15:53:00 | 71 views
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Accumulated to March 20th, 2018, the country has 25,339 valid projects with a total registered capital of 319.98 billion USD. The accumulated realized capital of foreign direct investment projects was estimated at 176.25 billion USD, equivalent to 55% of total valid registered capital

In the first quarter separately, the total value of newly and additionally registered capital, capital contributed and shares purchased by foreign investors was 5.8 billion USD, equaling 75.2% of the same period in 2017. The realized capital of foreign direct investment projects was estimated at 3.88 billion USD, up 7.2% over the same period in 2017.

I. Foreign investment in Vietnam

1. FDI accumulation until February 2018

Up to March 20th, 2018, the foreign investors have invested in 19 out of 21 branches in the national economic classification system, in which, processing, manufacturing industrial field accounted for the highest proportion with 185.9 billion USD, making up 58.1% of total investment capital, followed by real estate business with 53.7 billion USD (accounting for 16.8% of total investment capital), production and distribution of electricity, water and gas with 21.1 billion USD (making up 6.6% of total investment capital)

There were 126 countries and territories having valid investment projects in Vietnam. Korea ranked first with a total registered capital of 59 billion USD (accounting for 18.4% of total investment capital). Japan ranked second with 49.8 billion USD (capturing 15.6% of total investment capital), followed by Singapore and Taiwan, British Virgin Islands, Hong Kong.

FDI has been present in 63 provinces and cities in the whole country, in which Ho Chi Minh City continued to rank first in FDI attraction with 44.5 billion USD (making up 13.9% of the total investment capital), followed by Binh Duong with 30.62 billion USD (accounting for 9.6% of total investment capital), Hanoi with 27.7 billion USD (capturing 8.7% of total investment capital).

The registered capital accumulated until March 2018 decreased as compared to that accumulated until February 2018 because of the termination of the investment contract for Vung Ro petroleum refinery project in Phu Yen in March.

2. FDI attraction in the first quarter of 2018

2.1 Performance

Realized capital

As of March 20th, 2018, foreign direct investment projects were estimated to disburse 3.88 billion USD, up 7.2% as compared to the same period in 2017.

Export and import

Export: Export of foreign investment sector (including crude oil) was 39.34 billion USD, up 22.8% as compared to the same period in 2017 and accounting for 72.4% of export turnover. Export excluding crude oil was 38.83 billion USD, up 24.2% as compared to the same period in 2017 and accounting for 71.5% of total export turnover.

Import: Import of FDI sector was 31.75 billion USD, up 13.7% as compared to the same period in 2017 and capturing nearly 59.9% of import turnover. Generally, the trade surplus of FDI sector was 7.59 billion USD including crude oil and 7.08 billion USD excluding crude oil.

2.2 Granting of investment certificate

As of March 20th, 2018, the whole country had 618 new projects granted investment certificate with total registered capital of 2.12 billion USD, equaling 72.7% as compared to the same period last year and 199 times of projects registered to adjusted capital with total additionally registered capital of 1.79 billion USD, equaling 45.4% as compared to the same period in 2017. The registered investment capital in the first quarter of 2018 decreased as compared to same period in 2017 because, in the first quarter of 2017, Vietnam Samsung Display adjusted to increase capital to 2.5 billion USD.

Also in the first quarter of 2018, the whole country had 1285 times of capital contribution and share purchase by foreign investors with a total value of the capital contribution of 1.89 billion USD, up 121.6% as compared to same period of 2017. This includes 732 times of capital contribution and share purchase that increased enterprise chartered capital with the value of the capital contribution of 1.34 billion USD and 553 times of capital contribution and share purchase in which foreign investors bought secondhand shares from domestic holders without increasing charter capital with the total value of capital contribution of 547.8 million USD.

Generally in the first quarter of 2018, total newly and additionally registered capital and capital contributed and shares purchase by foreign investors was 5.8 billion USD, equaling 75.2% of the same period of 2017.

By investment field

In the first quarter of 2018, 17 fields were invested by foreign investors, in which, processing and manufacturing industry attracted much attention from foreign investors with the total capital of 3.44 billion USD, accounting for 59.4% of the total registered investment capital in the first quarter of 2018. Wholesale and retail field ranked second with total investment capital of 531 million USD, accounting for 9.2% of total registered investment capital. Real estate business ranked third with total registered investment capital of 486 million USD, capturing 8.4% of total registered investment capital.

By investors

In the first quarter of 2018, there were 76 countries and territories having investment projects in Vietnam. South Korea ranks first with total investment capital of 1.84 billion USD, making up 31.6% of total investment capital; Hong Kong ranked second with total registered investment capital of approximately 689 million USD, accounting for 11.9% of total investment capital into Vietnam; Singapore ranked third with a total registered investment capital of 649 million USD, capturing 11.2% of total investment capital.

By investment area

In the first quarter of 2018, 49 provinces and cities were invested by foreign investors, in which Ho Chi Minh City attracted the most of FDI with a total registered capital of 1.7 billion USD, capturing 29.3 % of total investment capital. Hai Phong ranked second with a total registered capital of 925 million USD, accounting for about 16% of total investment capital. Binh Duong ranked third with a total registered capital of 565 million USD, accounting for 9.7% of total investment capital.

Some large projects granted investment certificate in January 2018 are:

- LG Innotek Hai Phong factory project, licensed on September 1st, 2016 with the objective of manufacturing camera module, adjusted to increase investment capital by 501 million USD.

- Regina Miracle International Vietnam Co. project, licensed on March 20th, 2014 with the purpose of producing sports shoes and clothes in Hai Phong, adjusted to increase investment capital by 260 million USD.

-  Hanbaram Wind Power Plant Project, licensed on February 7th, 2018, with total investment capital of 150 million USD invested by Singapore in Ninh Thuan with the goal of producing electricity from renewable energy.

- Kefico Vietnam Co., Ltd., licensed in 2009 with the aim of producing spare and auxiliary parts for motor vehicles in Hai Duong, adjusted to increase investment capital by 120 million USD.

- Vina Cell Technology Co., Ltd projects, licensed in 2016 with the goal of producing the solar battery in Bac Giang province, adjusted to increase investment capital by 100 million USD.

II. Vietnam's investment abroad

In the first quarter of 2018, the whole country had 23 projects granted certificates of investment registration abroad with a total investment capital of 123.62 million USD from Vietnam, there were 5 adjusted capital projects with a total additional investment capital of 25.88 million USD from Vietnam. Generally, in the first quarter of 2018, the total newly and additionally registered investment capital abroad from Vietnam was 149.5 million USD.

In the first quarter of 2018, banking and finance sector ranked first in Vietnam’s investment capital abroad with the total newly and additionally registered capital of 105 million USD, accounting for 70.2% of total investment capital, manufacturing and processing industries ranked second with the total newly and additionally registered investment capital of 19.9 million USD, accounting for 13.3% of total investment capital. The other projects mainly belong to the wholesale and retail field with seven projects, with the total investment capital from Vietnam of 8.5 million USD, accounting for 8% of total investment capital. Some projects were in catering and accommodation services field, accommodation-only services and professional activities in science and technology, information and communication, construction, transportation, and warehouse.

There were 16 countries, territories received investments from Vietnam in the first quarter of 2018, led by Lao (accounting for 53.5% of total investment capital), Cambodia (accounting for 17,3%), Cuba (accounting for 13.3%), Australia ( accounting for 8%).


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