The Hanoitimes - South Korea, Japan and Singapore ranked the top three countries investing in Vietnam, pouring a total of $4.41 billion in the first four months of 2018.
Vietnam’s foreign direct investment (FDI) disbursement continued a positive trend in the first four months of 2018 while there was a reduction in the registered FDI capital.
According to the Ministry of Planning and Investment’s Foreign Investment Agency (FIA), FDI projects in Vietnam disbursed US$5.1 billion during the first four months, a year-on-year increase of 6.3 per cent.
Meanwhile, Vietnam attracted a total registered FDI capital of $8.06 billion in the first four months, or 76.1 per cent of that in the same period in 2017.
Foreign investors pour US$4.41 billion in Vietnam in the first four months
By April 20, the country had 883 new FDI projects, with a total newly registered capital of $3.55 billion and some 303 projects registering to increase their capital at a total of $2.24 billion, or 51.5 per cent of that in the same period in 2017.
In the first four months of this year, foreign investors contributed capital and bought shares worth $2.27 billion, a year-on-year surge of 67 per cent.
According to FIA, foreign investors had invested their capital in 17 industries and fields during the first four months. Of this, the manufacturing and processing sector attracted the largest FDI, with a total registered capital of $4.52 billion, accounting for 56.1 per cent of the total investment.
The real estate sector ranked the second in terms of FDI attraction, with a total investment capital of $807.5 million, accounting for 10 per cent of the total. In the third place were the wholesale and retail sectors, with a total registered capital of $779 million, accounting for 9.7 per cent of the total.
Some 82 countries invested in projects in Vietnam in the first four months. South Korea topped the list, with an investment of $2.32 billion, accounting for 28.7 per cent of the total investment. Japan ranked second, with a registered capital of approximately $1.29 billion, accounting for 16 per cent of the total investment. Singapore stood at the third place, with a registered investment of $808 million, accounting for 10 per cent of the total.
HCM City attracted the largest FDI in the first four months, with a total registered capital of $1.92 billion, accounting for 23.8 per cent of the total investment. Hai Phong ranked the second, with a registered capital of $1.03 billion, accounting for 12.8 per cent of the total. Hanoi ranked the third, with a registered registered capital of $746 million, accounting for 9.25 per cent of the total.
In the period of 2018-30, Vietnam should shift its strategy of attracting FDI away from profit-based incentives towards efficiency-based rewards, according to the FDI draft strategy for 2018-30 compiled by the Ministry of Planning and Investment (MPI) with support from the World Bank (WB).
The objective of the strategy is to identify priority sectors for FDI attraction in 2018-30, review the policy framework for FDI and recommend specific solutions and policies to help Vietnam attract FDI into these priority areas.
The main focus of this strategy is to shift from attracting appropriate investors for available Vietnamese products to develop suitable products (including business environment and appropriate investment conditions) to the kind of investment that Vietnam needs in the future. This shift will maximise the spillover effects and added value of FDI.