Fresh foreign investment hits record high in 10 months

Up to 2,608 newly foreign-invested projects were licensed in 10 months, surging 66 % against last year's same period. 

The report said that foreign investment inflows into the country also saw a yearly rise of 14.7 % to over $25.76 billion in the period.

Of the total, over $5.33 billion was added to 1,051 existing projects. Though the additional capital fell 39 %, the project number still increased 19.4 % from a year earlier, showing investors were confident in Vietnam’s investment climate, so they decided to expand their projects.

Meanwhile, foreign investors spent over $5.13 billion on contributing capital to and purchasing shares of domestic companies via 2,836 transactions, up 35.4 % and down 5.4 %, respectively. 

During the period, disbursement of foreign investment hit $18 billion, up 2.4 % year on year, according to the report. 

The processing and manufacturing industry lured the lion's share of foreign investment with nearly $18.84 billion, accounting for almost 73.1 % of the total and rising 45.8 % year on year.

Real estate came next with nearly $2.14 billion or 8.3 %, down 44.8 %. Finance and banking followed with about $1.54 billion, up 61.4-fold, and wholesale and retail with approximately $907 million, up 6.3 %.

The processing and manufacturing also ranked first in terms of new projects (32.8 % of the total) and those with additional capital (54.4 %). Meanwhile, the wholesale and retail sectors recorded the biggest number of capital contributions and share-purchasing transactions (41.6 %).

Six traditional investment partners of Singapore, Japan, mainland China, Taiwan, Hong Kong and South Korea accounted for 81.7 % of the country's total investment capital from January to October.

Of them, Singapore ranked first with more than $4.65 billion, making up over 18 % of the total and declining 13 %. 

South Korea followed with nearly $3.93 billion or equivalent to 15.2 % and rising 0.5 %, and Hong Kong with nearly $3.54 billion or over 13.7 % and rising almost 2.6-fold. 

The report added that China took the lead in the number of new projects, accounting for 21.7 % of the total. At the same time, South Korea ranked first in terms of projects with additional capital (25.7 %) and capital contribution and share purchasing transactions (28.2 %).

Quang Ninh Province attracted the most capital with nearly $3.09 billion, accounting for nearly 12 % and increasing 41.3 % from a year earlier. Hai Phong City stood second with over $2.8 billion, accounting for 10.9 % and surging 2.14-fold, followed by Hanoi, HCM City, and Bac Giang Province.

HCM City was the best performer in attracting new projects (38 %), those with additional capital (25.3 %), and capital contribution and share purchasing transactions (66.6 %), the report noted.

During a meeting with foreign investors in Hanoi this month, Prime Minister Pham Minh Chinh said Vietnam would continue to build a safe, transparent and highly competitive business and investment environment, enabling businesses and investors, including foreign ones to operate for a long term in the country. 

PM Chinh asked ministries, sectors and localities to continue effectively implementing policies and laws regarding the improvement of investment and business environment, while reviewing, adjusting and supplementing foreign cooperation policies to suit the reality, and listening to the ideas of businesses and investors, including foreign ones, to settle all arising problems.

He proposed that the business community continue to build long-term, sustainable and environmentally friendly business strategies, reforming their production and business models towards a green economy, digital economy, circular economy, knowledge economy, and climate change response.

"The success of investors is the success of Vietnam itself, everyone wins and no one is left behind," he said.

Viet Nam News

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