Newly registered FDI records three-fold increase in Jan-Feb

Newly-registered foreign direct investment capital in Vietnam jumped by 2.8 times year-on-year to $1.76 billion in the year to February 20, while disbursed capital dropped 4.9% to $2.55 billion.

The number of newly-registered FDI projects reached 261 in the two months, up 42.6%. Of these, four projects have registered capital exceeding $100 million, while the figure in the same period last year was only two.

Notably, the Singapore-invested Fulian precision technology plant project in the northern province of Bac Giang, with registered capital of $621 million, aims to produce electronics components and computers.

Total registered capital, which includes newly registered capital, additional capital of operational projects, and capital contributions for stake acquisitions, was nearly $3.1 billion, down 38% year-on-year.

Capital expansion of operational FDI projects plunged 85.1% to $535.4 million. A total 133 projects saw adjustments, down 6.3%.

Capital contributions for stake acquisitions inched up 3.7% compared to the same period last year to nearly $797.9 million, while the number of deals increased 10% to 440.

"The statistics show that Vietnam's FDI attraction has not significantly improved, though major investors have confirmed they see the country as an attractive investment destination," the Foreign Investment Agency said in a release.

Manufacturing and processing received the largest amount of registered FDI with $2.17 billion, accounting for 70.1% of the country's total, followed by the real estate sector with $396.9 million or 12.8%.

Wholesale-retail and warehouses attracted $202.1 million and nearly $141.9 million, respectively.

Of the 51 countries and territories investing in Vietnam in the first two months, Singapore led the pack with $978.4 million, or 31.6% of the total, down 42.7% year-on-year.

Taiwan ranked second with nearly $407.1 million, accounting for 13.1% of the total, 3.85 times higher than the same period last year, followed by the Netherlands with $369 million (11.9%), mainland China, South Korea and Sweden.

Mainland China ranked first in terms of new projects, accounting for 17.2%, while South Korea led the pack in terms of numbers of capital expansions and stake acquisitions (30.5%).