FDI drops 15.1 % year on year in first half

Vietnam recorded a year-on-year decrease of 15.1 % in foreign direct investment (FDI) inflows to US$15.67 billion as of June 20, according to the Ministry of Planning and Investment (MPI).

fdi drops 15.1 % year on year in first half hinh 0
The Sapporo Vietnam beer factory in the southern province of Long An (Photo: VNA)
The value included US$8.44 billion registered for 1,418 new projects, over US$3.7 billion added to 526 existing projects, and US$3.51 billion spent on contributing capital to or purchasing shares of domestic firms.

Among 18 sectors receiving foreign capital, the processing – manufacturing industry attracted the most – more than US$8 billion or 51.1 % of the total. It was followed by electricity production and distribution (US$3.95 billion , or 25.2 %), wholesale – retail (US$1.08 billion ), and real estate (nearly US$850 million).

Meanwhile, 98 countries and territories invested in Vietnam during the period. The largest investors were Singapore (US$5.44 billion, equivalent to 34.7 % of the total), Thailand (US$1.58 billion, 10.1 %), and China (US$1.58 billion, 10.1 %), followed by Japan, the Republic of Korea, and Taiwan (China), statistics show.

Foreign investors channeled capital into 57 provinces and centrally-run cities, with Bac Lieu province the top destination (US$4 billion, 25.5 % of the total), followed by Ho Chi Minh City (over US$2 billion, 12.9 %), Ba Ria – Vung Tau province (US$1.95 billion, 12.4 %), Hanoi, Binh Duong province, and Hai Phong city.

In its report, the MPI also pointed out that exports by the FDI sector in the first six months declined in both value and their proportion in Vietnam’s total overseas shipments, estimated at US$79.8 billion (including crude oil) – equivalent to 93.3 % of the figure in the same period last year and 65.9 % of the country’s total figure, and US$79 billion (excluding crude oil) – equivalent to 93.6 % of the figure in the same period last year and 65.2 % of the six-month value.

This sector’s imports stood at US$65.6 billion, representing 94.6 % of the figure in the same period last year and 56 % of the country’s total imports in the first half of 2020.

FDI firms still posted a trade surplus of US$14.2 billion, including crude oil, and US$13.4 billion, excluding crude oil, during the period. That helped make up for the deficit of nearly US$10.2 billion in the domestic sector, contributing to Vietnam’s trade surplus of over US$4 billion during the six months, the MPI noted.

VNA

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