Bac Lieu attracts lion’s share of FDI capital in first four months

The southern province of Bac Lieu topped the country in attracting foreign investment in the first four months of 2020 with a single project worth US$4 billion producing electricity from LNG, the Ministry of Planning and Investment’s Foreign Investment Agency (FIA) has reported.

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Drawing of Bac Lieu LNG Power Project (Source: cafef.vn)

The 3,200MW plant, invested by Singapore’s Delta Offshore Energy Pte.Ltd, will have four turbines of 750MW each and one with a capacity of 200MW, the former to go on stream at the end of 2023 and the latter in 2027. It is expected to create thousands of jobs and contribute more than VND3 trillion (US$129.6 million) a year to the State budget.

Bac Lieu was followed by the southern province of Ba Ria-Vung Tau, with US$1.9 billion and Ho Chi Minh City, with US$1.31 billion.

In the period, Vietnam attracted a total of US$12.33 billion in FDI, a year-on-year decrease of 15.5% due to the impact of the COVID-19 pandemic.

The figure, however, was much higher than that of the same period of 2018 and 2017 with US$5.8 billion and US$9.2 billion, respectively, the FIA said.

Singapore was the country’s largest source of FDI with US$5.07 billion in committed investment, accounting for 41%. Thailand and Japan were the runners-up with US$1.46 billion and US$1.16 billion, respectively, followed by mainland China, Taiwan (China) and the Republic of Korea.

Foreign investors pledged to pour capital in 18 sectors, with manufacturing and processing receiving nearly US$6 billion, accounting for 48.4% of the total capital. It was followed by power production and distribution (US$3.9 billion); wholesale and retail (US$776 million); and real estate (US$665 million), the FIA said.

According to the agency, FDI disbursement reached US$5.15 billion in the four months or equivalent to 90.4% of the last year’s corresponding period.

VNA