I. Foreign investment in Vietnam

1. FDI attraction in the first 8 months of 2019

1.1 Performance

Realized capital:

In the first 8 months of 2019, foreign direct investment projects were estimated to disburse 11.96 billion USD, up 6.3% as compared to the same period in 2018.

Export and import:

Export: Export of the FDI sector (including crude oil) was 117.95 billion USD, up 4.6% over the same period in 2018 and accounting for 69.4% of export turnover. Export excluding crude oil was 116.55 billion USD, up 4.7% as compared to the same period in 2018 and accounting for 68.6% of export turnover.

Import: Import of the FDI sector was 96.15 billion USD, up 4.8% as compared to the same period in 2018 and capturing 57.7% of import turnover.

Generally, in the first 8 months of 2019, the trade surplus of the FDI sector was 21.8 billion USD including crude oil and 20.4 billion USD excluding crude oil. Although the trade deficit of the domestic economic sector was 18.4 billion USD but the trade surplus of the foreign investment sector offset the trade deficit of the domestic economic sector. Therefore, the whole country saw a trade deficit of 3.4 billion USD in the first 8 months of 2019.

1.2 Granting of investment certificate

As of August 20th, 2019, the total newly and additionally registered capital and capital contributed and shares purchased by foreign investors was 22.63 billion USD, equalling 92.9% as compared to the same period in 2018. In which:

Newly granted: As of August 20th, 2019, the whole country had 2.406 new projects granted investment certificate, up 25.4%  in the number of projects as compared to the same period in 2018. The total newly-registered capital was 9.13 billion USD, equalling 67.7% as compared to the same period in 2018. Newly registered investment capital decreased as compared to the same period due to the decrease in the scale of the project, in the first 8 months of 2019, there is no project with a capital scale over 300 million USD. Meanwhile, there are some projects been granted new investment certificates in the first 8 months of 2018 (Smart city projects in Hai Boi, Dong Anh district, Hanoi, with total investment capital of 4.14 billion USD, invested by Japan, Polypropylene manufacturing plant and liquefied petroleum gas warehouse project, with a total registered investment capital of 1.2 billion USD, invested by South Korea in Ba Ria – Vung Tau). Excluding projects with over 1 billion USD scale, the total registered investment capital in the first 8 months of 2019 increased 12.1% as compared to the same period in 2018 and up 24.82% as compared to the same period in 2017.

Capital adjustment: There were 908 times of projects registered to adjust capital, increased 23.4% as compared to the same period in 2018. The total  adjustment capital reached nearly 4 billion USD, equalling to 71.4% as compared to the same period in 2018.  In 8 months of 2019, the scale of adjusting to expand the capital of small projects, there is no  project raising capital with a large scale as in the same period in 2018 (in the first 8 months of 2019, Laguna Company Limited project, invested by Singapore adjusted to raise capital with an addition of 1.12 billion USD)

Capital contribution and share purchase: Also in the first 8 months of 2019, the whole country had 5.235 times of capital contribution and share purchase by foreign investors with a total value of the capital contribution of 9.51 billion USD, increased 80% as compared to the same period in 2018 and capturing 42% of the total registered capital.

By investment field:

In the first 8 months of 2019, 19 fields were invested by foreign investors, in which, the investment mostly focused on the processing and manufacturing sector with the total capital of 15.74 billion USD, accounting for 69.6% of the total registered investment capital. Real estate business ranked second with total investment capital of 2.31 billion USD, accounting for 10.2% of total registered investment capital. Wholesale and retail field ranked third with a total registered investment capital of 1.19 billion USD, capturing 5.2% of total registered investment capital, etc.

By investors

In the first 8 months of 2019, there were 103 countries and territories having investment projects in Vietnam. HongKong ranked first with total investment capital of 5.63 billion USD (including 3.85 billion USD of shares purchased in Vietnam Beverage Co., Ltd. in Hanoi), making up 24.9% of total investment capital; Korea ranked second with total registered investment capital of 3.48 billion USD, accounting for 15.4% of total investment capital into Vietnam; Singapore ranked third with a total registered investment capital of 3.27 billion USD, capturing 14.5% of total investment capital. Chian, Japan ranked fourth and fifth successively with a total registered capital of 2.78 billion USD and 2.34 billion USD.

By investment area

In the first 8 months of 2019, 56 provinces and cities were invested by foreign investors, in which Hanoi attracted the most of FDI with a total registered capital of 5.66 billion USD, capturing 25% of total investment capital. Ho Chi Minh City ranked second with a total registered capital of 3.86 billion USD, accounting for 17% of total investment capital. Binh Duong ranked third with a total registered capital of 1.95 billion USD, accounting for 8.6% of total investment capital, etc.

Some large projects in the first 8 months of 2019 are:

- Capital contribution and share purchase project of Beerco Limited (HongKong) in Vietnam Beverage Limited Company, with the total value of the capital contribution of 3.85 billion USD, with the main goal of producing beer and malt for brewing beer in Hanoi.

- ACTR's all-steel Radian tire manufacturing project with a total registered investment capital of 280 million USD, invested by Chinese investors in Tay Ninh to produce TBR all-steel tires.

- Electronic equipment, network equipment, and multimedia audio products manufacturing factory project, with the total registered capital of 260 million USD, invested by Goertek (HongKong) co., Limited in Bac Ninh.

- Hoa Hoi solar power plant project in Phu Yen, with the total registered capital of 216.7 million USD, invested by Thailand investors in Phu Yen to produce solar energy.

- Vietnam’s Advance Tire co., Limited project, with the total registered capital of 214.4 million USD, invested by Guizhou Advance Type Investment co., Ltd (China) to produce and consume tires, rubber, and related products in Tien Giang.

- Vinhtex project with the total registered investment capital of 200 million USD, invested by Royal Pagoda Private Limited (Singapore) to produce fabric and dyeing knitting fabric in Nghe An.

- Meiko Electronics Vietnam Co., Ltd (Hong Kong) project to design, assemble and manufacturing electronic components in Hanoi, adjusted to increase investment capital by USD 200 million.

2. FDI accumulation until August 2019

Accumulated to August 20th, 2019, the whole country has 29.532 valid projects with a total registered capital of 353.7 billion USD. The accumulated realized capital of foreign direct investment projects was estimated at 203.45 billion USD, equalling 57.5% of total valid registered capital.

- By investment field: The foreign investors have invested in 19 out of 21 branches in the national economic classification system, in which, processing and manufacturing sector accounted for the highest proportion with nearly 207.2 billion USD, making up 58.6% of total investment capital, followed by real estate business with 58.1 billion USD (accounting for 16.4% of total investment capital), production and distribution of electricity, gas and water with 23.45 billion USD (making up 6.6% of total investment capital).

- By investors: 132 countries and territories were having valid investment projects in Vietnam. Korea ranked first with a total registered capital of 64.87 billion USD (accounting for 18.3% of total investment capital). Japan ranked second with 58.23 billion USD (capturing 16.5% of total investment capital), followed successively by Singapore and Taiwan, Hong Kong.

- By investment area: FDI has been present in all 63 provinces and cities of the country, in which Ho Chi Minh City continued to rank first in FDI attraction with 45.9 billion USD (making up nearly 13% of the total investment capital), followed by Binh Duong with 33.3 billion USD (accounting for 9.4% of total investment capital), Hanoi with 32.7 billion USD (capturing 9.2% of total investment capital).

II. Vietnam's investment abroad

In the first 8 months of 2019, the total newly and additionally registered investment capital abroad from Vietnam reached 439.02 million USD. In which there were 102 projects newly granted certificates of investment registration with a total investment capital of 339.49 million USD from Vietnam. There was 23 project adjusted capital with a total additional investment capital of 99.53 million USD from Vietnam.

By investment field: The fields of wholesale and retail ranked first in Vietnam’s investment capital aboard with the total newly and additionally registered capital of 96.68 million USD, accounting for 22% of total investment capital; agriculture, forestry, fisheries ranked second with 88.75 million USD and accounting for 20.2% of total investment capital; the fields of professional, scientific and technological activities ranked third with 83.36 million USD, accounting for 19% of total investment capital. The other projects belong to others field.

By investment area: In the first 8 months of 2019, there were 30 countries and territories received investments from Vietnam. Australia is the leading area of Vietnam's investment abroad with 178.9 million USD, accounting for 40.7% of total investment. Spain ranked second with a large project with 59.8 million USD of investment capital, capturing 13.6% of the total investment capital, followed by the United State of America, Cambodia, Singapore, Canada, etc./.

Ministry of Planning and Investment