China investment in Vietnam surges amid trade war
FDI commitments in the January – November period totaled US$31.8 billion, up 3.1% year-on-year.
Direct investment flows from Hong Kong and mainland China to Vietnam increased by 3.9-fold and 2-fold year-on-year in the January – November period, respectively, amid escalation of the ongoing US – China trade tensions , a report of the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment has shown.
| Unit: billion USD. Data: MPI. Chart: Ngoc Thuy. |
The data shows that out of 117 countries and territories investing in Vietnam in the eleven-month period, Hong Kong (China) took the lead with US$6.69 billion. South Korea came second with US$5.73 billion, while the third place belonged to Singapore with US$4.47 billion.
Among 60 cities and provinces having received FDI between January and November, Hanoi has attracted the largest portion of capital commitments with over US$6.82 billion, accounting for 21.5% of total commitments in the period.
Ho Chi Minh City came second with US$5.48 billion, followed by Binh Duong, Dong Nai, Bac Ninh.
| Unit: billion USD. Data: MPI. Chart: Ngoc Thuy. |
FDI commitments in the January – November period totaled US$31.8 billion, up 3.1% year-on-year, according to the agency.
Disbursement of foreign direct investment (FDI) projects in Vietnam totaled US$17.69 billion between January and November, representing an increase of 7.2% year-on-year,
Year to November 20, 3,478 new projects have been approved with total commitments of US$14.68 billion, up 28.2% in number of projects and down 7% in capital year-on-year, while 1,256 existing projects have been injected an additional US$5.87 billion, up 20% in projects and down 20.7% in capital.
During this period, 8,561 projects have had US$11.24 billion in capital contributed by foreign investors, up 47.1% year-on-year and accounting for 35.4% of total registered capital.
Investors have poured money into 19 fields and sectors, in which manufacturing and processing continued to attract substantial attention with investment of US$21.56 billion, or 67.8% of the total registered capital, followed by real estate with US$3.31 billion or 10.4% of the total, and retail and wholesale, science and technologies.
Some of the big-ticket projects in the January – November period include a smart city project in Hanoi with registered capital of US$4.14 billion; US$1.2 billion polypropylene (PP) manufacturing plant in Ba Ria – Vung Tau; US$3.85 billion in capital contribution from Hong Kong-based Beerco Limited to Vietnam Beverage for a beer project in Hanoi.
In addition, on the list were an injection of an additional US$410 million to LG Display Hai Phong; the US$260-million electronic manufacturing plant by Goertek (Hong Kong) located in Bac Ninh province; tire manufacturing plant worth US$280 million from a Chinese investor in Tay Ninh province and a similar project worth US$214.4 million financed by Guizhou Advance Type Investment (China) in Tien Giang province; and a solar power project worth US$216.7 million from Thailand’s investors in Phu Yen province.
