Vietnam's FDI inflow surges at start of year

According the General Statistics Office (GSO), of this sum, over US$1.9 billion came from 291 newly-licensed projects, surging 96.6% in the number of projects and 167.5% in the level of capital, while another 137 operating projects, which expanded their investments, contributed US$898.3 million.

GSO noted that disbursements of foreign direct investment (FDI) also recorded a yearly rise of 15.4% to an estimated US$1.5 billion.

During the reviewed period, the manufacturing and processing sector accounted for more than 71% of the total FDI pledged in the country, as it attracted US$1.99 billion. This was followed by the entertainment industry, with US$210.6 million.

Singapore remained Vietnam's largest source of FDI, with US$435.2 million and making up 22.8% of the nation's total new registered FDI in the past two months. It was followed by Malaysia with US$233.2 million or 12.2%; the Republic of Korea (US$202.4 million or 10.6%); and Japan (US$160.6 million or 8.4%).

Large foreign investors also included Hong Kong, mainland China, the United Kingdom and Taiwan (China).

The northern provinces of Bac Giang and Bac Ninh came in second and third with US$206.1 million or 10.8%, and US$200.6 million or 10.5%, respectively. 

They were followed by Ba Ria-Vung Tau Province with US$157.1 million; HCM City (US$156 million); Dong Nai Province (US$143 million) and Ha Tinh Province (US$139 million).

Earlier, Nguyen Mai, chairman of the Vietnam Association of Foreign Invested Enterprises, told online newspaper bizlive that many multinational groups have scheduled to move their production and businesses from other countries in the region to Vietnam to take advantage of the FTAs. 

Therefore, the Government should guide authorities of provinces and cities to choose suitable foreign investors and technologies to protect the environment and reduce energy usage, he noted.