Foreign investment inflow into Vietnam rises by 4.2% in Jan

07 Feb '22

2 min read

Pic: Shutterstock

Foreign investment into Vietnam hit over $2.1 billion as of January 20, up by 4.2 per cent year on year (YoY), according to the latest report from the Foreign Investment Agency (FIA), which said disbursement of foreign direct investment (FDI) also witnessed a rise of 6.8 per cent to surpass $1.61 billion during the first month of this year.

Following the recovery from the end of 2021 after the impact of the COVID-19 pandemic, many foreign-invested enterprises have stabilised and expanded their production and business activities, FIA noted.

According to the document, up to 103 new foreign-invested projects were licensed with a total registered capital of nearly $388 million, up by 119.1 per cent YoY in terms of the number of projects, but down 70.7 per cent in value, a Vietnamese news agency reported.

Although registered investment capital decreased compared to the same period last year due to a lack of large-scale projects, an increase in the number of new investment projects showed the confidence of foreign investors in the country's investment environment, FIA said.

Meanwhile, 71 operating projects were allowed to raise their capital by $1.27 billion, up by 54.3 per cent in project number and nearly triple the level of capital seen in the same month last year.

Capital contributions and share purchases by foreign investors stood at $443.5 million, up two times over the last year's corresponding month.

Among 15 sectors receiving FDI in the first month, processing and manufacturing took the lead with over $1.2 billion, accounting for 58.9 per cent of the total FDI. Wholesale and retail received over $221 million and $52.5 million respectively.

Singapore led 33 countries and territories investing in Vietnam with total investment capital of nearly $666 million, making up nearly 31.7 per cent of the total FDI registered in the country.

South Korea ranked second with over $481 million, up by five times YoY or equivalent to 30 per cent of the total FDI. Mainland China came third with nearly $451 million, down 27 per cent or 21.5 per cent.

The capital city attracted the highest amount of FDI, with over $448 million, 29.9 times higher than last January, making up 21.3 per cent of the total. The central province of Nghe An came second with $400 million or 19 per cent. It was followed by Bac Ninh, Long An and Phu Tho.

Fibre2Fashion News Desk (DS)

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