Tuesday, April 20 2021

VietNamNews

Foreign investment tops $5.46b in Jan-Feb

Update: February, 26/2021 - 08:36
Components for gas stoves are manufactured by workers of the Japan-invested Paloma Vietnam Co in Hải Phòng City. — VNA/VNS Photo Danh Lam

HÀ NỘI — Foreign investors poured US$5.46 billion into Việt Nam in the first two months of this year, a year-on-year decrease of 15.6 per cent, according to the Foreign Investment Agency (FIA).

Up to 126 new projects were granted investment licences during the period, down 75 per cent year-on-year while the registered capital topped $3.31 billion, plunging 34 per cent compared to the same period last year which saw the $4 billion Bạc Liêu LNG-to-power project from Singapore licensed.

However, if the project was excluded, total investment this month would be 83 per cent higher than last year, the FIA said.

It added 115 existing projects were allowed to add capital totaling $1.62 billion, representing a yearly slump of 24 per cent in the number of projects but 2.5 times higher in level of capital.

Meanwhile, capital contributions and shares purchased by foreign investors stood at over $543 million, down 34.4 per cent.

The resurgence of COVID-19 in many countries including Việt Nam has affected investors' travel as well as their decisions in making new investments and in project expansion. Therefore, the number of new projects, the level of capital added into operating projects and their capital contributions and share purchases in two months of 2021 both decreased over last year’s corresponding period, the FIA noted.

In a bright spot, however, FDI disbursement saw a slight increase of 2 per cent to an estimated $2.5 billion, it said, attributing this encouraging figure to business recovery of foreign companies and their efforts in ensuring production amid the impact of the COVID-19 pandemic.    

Foreign investors pumped capital into 17 sectors in the period, with processing and manufacturing holding the lead at nearly $3 billion, representing 56 per cent of the total.

Electricity production and distribution ranked second with $1.44 billion or 26.5 per cent, followed by real estate and science and technology with $485 million and nearly $153 million, respectively.

Japan surpassed Singapore to become Việt Nam’s largest source of FDI with $1.64 billion, accounting for 30 per cent of the total. Singapore came next with $1.07 billion or 19.6 per cent while South Korea was third with $1.05 billion or 19.3 per cent, followed by mainland China, Hong Kong and the US.

As of February 20, the country is home to 33,215 valid foreign-invested projects, worth $388.8 billion. Over half of the total has been disbursed.— VNS

Some large-scale projects in January-February period

1. The Japanese Ô Môn II Thermal Power Plant, worth $1.3 billion in Cửu Long Delta City of Cần Thơ. Once operational, the plant is expected to meet the needs of power for the regional grid and the national electricity system in Cần Thơ.

2. The addition of $750 million pumped by the South Korean LG Display Vietnam into its project in the northern port city of Hải Phòng. The additional amount brought the investment capital of the entire project to $3.25 billion in total, making it the foreign-invested project with the highest value in the city.

3. Capital expansion was made by China’s radian tyre manufacturing project in the southern province of Tây Ninh which has added $312 million.

4. The project of Singapore’s Vietnam Kodi New Material Co., valued at $270 million in northern Bắc Giang Province with the goal of manufacturing and processing tablets and laptops. 

5. China’s $210 million JA Solar PV Vietnam which will manufacture photovoltaic cells in Bắc Giang Province. — VNS

 

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