FDI capital mainly flows in the processing and manufacturing industry
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The period also saw $356 million come from 415 deals made by foreign investors to contribute capital to Vietnamese firms or buy shares of Vietnamese firms, jumping 54% year-on-year.
GSO said FDI was concentrated mostly in the processing and manufacturing industry with $330 million, accounting for 74% of the total investment. Electricity production and distribution came second with $60 million (13.5%).
Foreign businesses provided capital to 24 provinces and cities nation-wide in January.
Ho Chi Minh City took the lead in FDI attraction with $86.2 million, accounting for 19.5%. It was followed by Nam Dinh Province at $80.2 million and Ninh Thuan at $60 million.
With $147.7 million, Singapore was the largest investor among the 23 countries and territories investing in Vietnam, making up 33.4% of total FDI, followed by South Korea, which invested $70.4 million, or 15.9% of total FDI, and Norway with $70.1 million.
Experts have so far forecast that Vietnam will continuously see a rising foreign direct investment inflow this year.
Phan Huu Thang, former director of the Ministry of Planning and Investment's Foreign Investment Agency and deputy chairman of the Vietnam Association of Foreign Invested Enterprises, believed that Vietnam can be optimistic about foreign investment capital inflows in 2018 as well as the subsequent years after successfully hosting the APEC Summit last November.
Thang explained that the APEC’s role in record high foreign investment and FDI inflows cannot be denied. It is sure that the APEC will position Vietnam as a desirable destination for an increasing number of investors.
It needs to be added that 2017 marked the 30th year that Vietnam opened its doors to FDI. During these three decades, Vietnam has gradually affirmed its position in the international arena, producing constant growth that has become one of the major factors attracting foreign investment capital, he said.
According to experts, the government has asked the Ministry of Planning and Investment to co-ordinate with relevant agencies and the provincial authorities of Quang Ninh, Khanh Hoa, and Kien Giang to quickly draw up the Law on Special Administrative-Economic Zones. Despite the heated debate about the contents of the draft law, it will contribute to attracting FDI this year once it is approved by the National Assembly.
Thang said that Vietnam has so far planned for FDI attraction in 2018 with a focus on high-tech and environmentally friendly projects. Notably, Vietnam will stimulate investment in renewable energy projects, high-tech agriculture, as well as smart cities, among others.
It will try to attract FDI while keeping the national identity and safeguarding the environment, Thang said.
Reports from the Foreign Investment Agency under the Ministry of Planning and Investment showed that Vietnam has remained an attractive destination for foreign investors in 2017 with total FDI capital registered in the country hitting a record high of $35.88 billion, up 44.4% against the previous year.
In 2017, FDI disbursement also saw a record setting, as it increased 10.8 per cent to $17.5 billion. In the previous years, the capital influx reached only some $11-12 billion.
These sweet fruits show that government has been very successful in creating a favorable investment environment for foreign investors, as committed, Thang concluded.
