FDI reaches US$23 billion in 2015

Up to 2,013 projects with US$15.58 billion in foreign investment were granted licences as of December 15, surging 26.8% in terms of the number of projects, but plunging 0.4% in terms of capital over the same period last year. Meanwhile, 814 existing projects were also allowed to increase their capital by US$7.18 billion.

During the reviewed period, FDI disbursement reached an estimated US$14.5 billion, surging 17.4% year-on-year, GSO said.

The manufacturing and processing sector attracted the lion's share of FDI at US$15.23 billion, accounting for about 67% of the nation's FDI. The production and distribution of electricity, gas, hot water and steam, and air conditioners ranked second with US$2.81 billion FDI or 12.4%, while real estate trading came third with US$2.39 billion or 10.5%.

Ho Chi Minh City beat 48 cities and provinces to become the most attractive destination for foreign investors. The city lured more than US$2.81 billion, comprising 18% of the total FDI registered in the country.

It was followed by Tra Vinh Province with US$2.52 billion or 16.2%, Binh Duong Province with US$2.46 billion or 15.8%, Dong Nai Province with US$1.47 billion or 9.4% and Hanoi with US$910.7 million or 6%.

Other localities that also attracted FDI are Haiphong City (US$573.1 million), Tay Ninh Province (US$503 million) and Quang Ninh Province (US$374 million).

Among 58 countries and territories that have invested in Vietnam, the Republic of Korea is the country's largest source of FDI with US$2.68 billion, accounting for 17.2% of the total new FDI, followed by Malaysia with US$2.45 billion or 15.7% and Japan with US$1.28 billion or 8.2%, besides the United Kingdom with US$1.26 billion or 8.1% and Taiwan (China) with US$940.4 million or 6%.

Experts said Vietnam was likely to attract more foreign investment next year and in the future because of the opportunities and advantages resulting from free trade agreements (FTAs).

Vo Tri Thanh, deputy head of the Central Institute of Economic Management, said of the FTAs, the Trans Pacific Partnership (TPP) deal and FTA between Vietnam and the European Union would bring great opportunities for the nation and attract additional foreign investment, especially FDI.

If foreign investors came to Vietnam to participate in production and business, they could approach large markets that are member countries of the FTAs, Thanh said.

These member countries include the US, Japan, Australia and Canada in the TPP, and European Union nations operating under the FTA.

Hoang Thi Chinh from the HCM City Economics University said Vietnam would enjoy great opportunities from not only Japanese and American investments, but also the Republic of Korea's ones.

There would be investments not in labour-intensive industries, but in fields that required hi-tech and intelligence, Chinh told Dat Viet online newspaper.

The Republic of Korea's and Japan's investors might pour money into agriculture, while the US was likely to inject money into hi-tech fields, she said.