FDI disbursement at record high in 2016
Disbursement of foreign direct investment (FDI) capital in 2016 was estimated at US$15.8 billion as of December 26, a record high and up 9% on a yearly basis, according to the Foreign Investment Agency under the Ministry of Planning and Investment.
The number of projects granted licences in the year to December 26 was 2,556 with US$15.1 billion in total register capital, up 27% year on year in project number but equal to just 97.5% of capital.
In the same period, 1,225 projects asked to add US$5.76 billion to their capital.
Meanwhile, foreign investors purchased stakes worth more than US$3.4 billion in 2,547 firms and economic organisations.
All in all, FDI capital inflow in 2016 totalled US$24.4 billion.
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The FDI sector posted an estimated export value (including crude oil) of US$125.9 billion for the year, up 10.2% from 2015 and accounting for 71.55% of the country’s total export revenue. Non-oil export value was estimated at US$123.55 billion, an increase of 11.8% over 2015 and making up 70.2% of the nation’s total export revenue.
The Foreign Investment Agency said the drop in new registered capital and additional capital was attributable to a lack of large-scale projects.
Two major projects, the US$2.5 billion Nghi Son 2 power plant and the US$2.5 billion Vung Ang 2 power plant, were initially hoped to receive licences this year, but they have now been delayed to 2017.
While FDI was poured into 19 sectors, the manufacturing and processing sector absorbed the biggest share of FDI capital with 63.7% or US$15.53 billion, followed by the automobile and motorbike wholesale, retail and repair with 7.79% (nearly US$1.9 billion), and real estate with 6.9% (US$1.68 billion).
Among 95 countries and territories investing in Vietnam in 2016, the Republic of Korea led in the term of capital with US$7 billion (28.8% of the total). Japan came second with US$2.58 billion (10.62%), and Singapore was third with US$2.41 billion (9.9%).
Ho Chi Minh City led cities and provinces nationwide in attracting FDI, absorbing US$3.42 billion (14% of the total). The northern port city of Haiphong came next with US$2.98 billion (12.26%). Hanoi, Binh Duong and Dong Nai followed with US$2.79 billion, US$2.36 billion and US$2.23 billion, respectively.
Most remarkable among new FDI projects licensed in 2016 include the LG Display Hai Phong worth US$1.5 billion invested by the RoK’s LG Display Co Ltd, the US$550 million LG Innotek Hai Phong, invested by LG Innotek also of the RoK, and the Dam Nha Mac sea port-industrial park complex in Quang Ninh worth US$315.46 billion invested by CDC of the Cayman Islands.
