A worker at a foreign-invested firm. (Photo: Hung Le)
According to data from the Ministry of Planning and Investment’s Foreign Investment Agency, new foreign investment approvals in Vietnam in the first two months of the year have reached US$8.47 billion, up 2.5 times over the same period last year.
In the two-month period, 514 new projects have obtained investment certificates, with total registered capital of some US$2.44 billion, surging by 75.7% year-on-year. In addition, 176 operational foreign-invested projects have won approval to inject an additional US$854.8 million, up 22.1% versus the year-ago period.
Meanwhile, foreign investors have conducted 1,040 transactions to contribute funds to and acquire shares in local firms, with a combined value of US$5.17 billion, a four-fold increase against the first two months of 2018.
Foreign capital inflows into the country through mergers and acquisitions (M&As) have steadily grown over the last two years.
According to the Foreign Investment Agency, foreign investors injected capital into 18 sectors, of which the manufacturing and processing sector is the most attractive, having received a total investment of US$6.93 billion, making up 81.8% of the fresh capital.
The real estate sector is second, with US$478 million, followed by the science and technology sector, with US$306.7 million.
Hong Kong is Vietnam’s largest investor in the two-month period, with US$4.3 billion, accounting for more than half of the total. Singapore is second, with US$979.1 million, and the third largest investor is South Korea, with US$873 million.
In terms of localities, Hanoi received the most foreign investment, more than US$4 billion, 47.3% of the total, followed by HCMC with over US$1 billion and Bac Ninh Province with US$541.7 million.
With these positive results in attracting foreign investment in the first two months of the year, the country can expect a surge in foreign capital inflows this year thanks to the country’s high and stable economic growth, deeper international integration, young manpower, improved infrastructure and the Government’s preferential policies for foreign investors.
