Foreign direct investment (FDI) pledges to Vietnam over the first two months of 2018 dropped by 1.8% year-on-year to US$3.34 billion, but disbursements rose by 9.7% to US$1.7 billion, as per official data from February 20.
FDI disbursement increases by 9.7% in first two months
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Manufacturing remained the most attractive sector to foreign investors, receiving commitments of US$1.83 billion, more than half of the total number of new projects.
The construction sector received the second largest chunk of FDI with US$345.4 million, followed the by the property sector with US$312.1 million.
Among the 60 countries and territories investing in Vietnam in early 2018, the Republic of Korea came out on top with US$851.2 million, or a quarter of the total capital, followed by the British Virgin Islands and Singapore with US$450 million and US$418.5 million, respectively.
Ho Chi Minh City, Vietnam’s economic powerhouse, was the largest recipient of FDI during the period with US$1.1 billion, while the neighboring province of Binh Duong received US$434 million to take second place.
The third largest FDI recipient was the south central coastal province of Ninh Thuan, thanks to a US$150-million wind farm project funded by Singapore.
During January and February, exports by the foreign-invested sector reached nearly US$24 billion, with oil revenues accounting for 71.3% of Vietnam’s total export turnover.
The sector also imported goods worth US$19.2 billion, meaning it ran a trade surplus of US$4.8 billion in the period.
In terms of investment fields, foreign investors have invested in 16 sectors. Of these, the manufacturing sector attracted the most attention, with a total capital of US$1.83 billion, accounting for 54.6% of the total registered capital.
In terms of investment partners, there are 60 countries and territories with investment projects in Vietnam. South Korea ranked first, with the total investment of US$851.2 million, accounting for 25.5% of the total.
In terms of investment areas, foreign investors have invested in 47 cities and provinces. Of these, Ho Chi Minh City attracted the most foreign investment capital.
There are only some large-scale projects registered to invest in Vietnam early this year. For example, the US$150-million Hanbaram Wind Power Project in Ninh Thuan province, invested by Singapore, aims to generate electricity from renewable energy.
Data from the Foreign Investment Agency showed that up to February 20, 2018, foreign direct investment projects have disbursed US$1.7 billion, up 9.7% over the same period of 2017.
