The processing and manufacturing industry attracts US$8.4 billion of FDI in the first quarter of 2019.
The figure was US$4.03 billion in 2016, US$7.71 billion in 2017 and US$5.8 billion last year. As of March 20th 2019, foreign investors had registered US$10.8 billion in new and additional capital, and capital for buying shares of domestic firms, up 86.2% year-on-year.
This included US$3.82 billion for 785 new projects, rising by 80.1%. However, capital pumped into existing projects, at nearly US$1.3 billion for 279 existing ones, was equal to only 72.5% of the figure in the corresponding period last year.
Despite an increase of 40.2% in the number of projects receiving additional capital, the extra capital injected into each project in the period was only US$4.65 million on average, lower than US$8.99 million in the same period last year.
In the first three months of the year, foreign investors conducted more than 1,650 transactions to contribute funds to and acquire shares in local firms, with a combined value of US$5.68 billion, or 52.6% of the total figure, a threefold increase against that in the first three months of 2018.
Foreign investors poured money into 18 sectors, with US$8.4 billion or 77.7% channelled into processing and manufacturing. Real estate and science-technology came second and third in terms of FDI attraction, gathering US$778.2 million and US$383.2 million, respectively.
Real estate came second in terms of FDI attraction, with US$778.2 million.
In the 74 countries and territories invested in Vietnam, according to FIA, Hong Kong was the largest financial supporter in the three-month period, with US$4.4 billion, accounting for 40.7% of the total. Singapore ranked second, with US$1.46 billion, followed by South Korea (US$1.3 billion), China (US$1 billion) and Japan (US$700 million).
Meanwhile, the FDI capital flowed into 49 provinces and cities. Hanoi was the biggest destination, attracting over US$4.15 billion, making up 38.4% of the total. Ho Chi Minh City and Binh Duong province followed with US$1.57 billion and US$625.6 million, respectively.
Between January and March, FDI projects were estimated to disburse $4.12 billion, an increase of 6.2 percent year-on-year.
According to the FIA, the foreign-invested sector exported US$41.45 billion worth of goods, including crude oil, during the three months, rising 2.7% year-on-year and accounting for 70.8% of Vietnam’s total exports. Excluding crude oil, the figure stood at US$40.95 billion, up 2.8% and making up 70% of the total shipments.
The FDI sector recorded a trade surplus of US$7.57 billion (including crude oil) and US$7.06 billion (excluding crude oil).
Previously, in Jan-Feb period, FDI attraction hit $8.47 billion, about 2.5 times higher than the same period of 2018. Capital structure, however, showed growth mainly comes from indirect investment capital. Meanwhile, capital disbursement rose slightly, reaching $4.1 billion, up 5.7 percent over the same period last year.
