Reports from the Foreign Investment Agency under the Ministry of Planning and Investment showed after receiving only US$9.9 billion of FDI registered capital in the first five months, down 18.4% year-on-year, Vietnam in June saw foreign investment to accelerate strongly, pushing the total inflow in the first half of the year to more than US$20 billion.
The construction of the Southeast Asia's largest smart city will be completed by 2028.
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Under the joint venture's plan, Southeast Asia's largest smart city will be developed within five phases invested by five joint venture models with the total investment capital of $4.138 billion. In the first phase, the Sumitomo - BRG joint venture will pour over $1 billion into facilities on an area of 73.11 hectares.
So far, these corporations have completed all the investment procedures and prepared financial resources to start the project.
The joint venture will soon conduct the land clearance to kick off the first facilities in October as expected. The city's final phase is also expected to be completed by 2028.
The two other billion-dollar projects got new license or approved to increase capital in the past month are the US$1.2 billion polypropylene production project invested by South Korea's Hyosung Corporation in the northern province of Ba Ria-Vung Tau; and the US$1.12 billion Laguna Lang Co luxury property project invested by Singapore's Banyan Tree Holdings in the central province of Thua Thien-Hue.
Besides, in the past month, the country also licensed the US$600 million Lotte Mall Hanoi project and approved to increase investment capital of US$501 million for the LG Innotex camera modules production project in the northern city of Hai Phong invested by South Korean firms.
Foreign inflows continue rising
The acceleration of FDI inflow in the past month has removed concern that the foreign inflow to Vietnam is slowing down.
Nguyen Mai, President of the Vietnam Association of Foreign Invested Enterprises (VAFIE), said that a market report conducted by the American Chamber of Commerce clearly stated that in 2018, Vietnam continues to be a haven for overseas investors in electronics and polyester yarn factories due to "low costs, abundance of labor and matter-of-fact permitting process."
Besides, the FDI inflows to Vietnam next months are also expected to rise significantly after recent visits of Vietnamese leaders to South Korea, Singapore and Japan, where they met and discussed with many big companies to encourage them to continue investing in the country.
The visits have so far also brought good results. After the visit to Singapore of Prime Minister Nguyen Xuan Phuc in late April, Singapore's Sembcorp signed a memorandum of understanding with Quang Ngai province on the development of the Dung Quat Power Project with total investment capital of over US$2 billion.
The state visit of President Tran Dai Quang to Japan in May is also expected to open the possibility that many large projects of Japanese investors will continue to select Vietnam as an investment destination.
With the move, experts forecast that FDI inflows will continue pouring into Vietnam in the time to come.
