Foreign direct investment (FDI) flow to Vietnam has continued to grow since the start of this year with Chinese businesses taking the lead in terms of new projects.
Registered FDI capital totalled $6.17 billion in the year to March 20, up 13.4% year-on-year, versus a 38.8% fall in the same period last year, according to a monthly report by the Ministry of Planning and Investment.
The amount included $4.77 billion from 644 newly-licensed projects, up 57.9% in value and 23.4% in the number of projects; $934.6 million in additional capital for 248 existing projects, down 22.6% and up 6%; and $466.2 million from 604 capital contribution deals, down 61.7% and 14.1%, respectively.
Among 62 countries and territories investing in Vietnam so far this year, Singapore took the lead with $2.55 billion in registered capital, followed by Hong Kong with $1.05 billion. China overtook Japan to take the third place
Newly-registered capital from Singapore and Hong Kong accounted for respective 89.5% and 79.1% of their registered capital in the period.
Meanwhile, mainland China took the top spot in terms of newly-registered projects, accounting for 27.8% of the total. South Korea led in terms of the number of capital additions for existing projects (23%) and capital contribution deals (27.8%).
The five biggest investors combined made up 72.7% of newly-registered projects and 82.9% of newly-registered capital in the three-month period, according to the report.
Foreign investors invested in 17 economic sectors between January and March. Manufacturing and processing remained the most attractive, drawing $3.93 billion, or 63.6% of the country's total registered FDI.
The ministry report highlighted the fact that investors had invested heavily in energy, parts production, electronics and high added value projects.
Hanoi continued to be the largest recipient of registered FDI with $970.8 million, driven by a $662 million residential property project. The runners-up were neighboring Bac Ninh province with $745.2 million, and Quang Ninh, another northern province, with $567.5 million.
The report noted that FDI has flowed mostly to localities with well-developed infrastructure, stable workforce and considerable efforts to carry out administrative reforms and promote investments.
It said FDI disbursement reached $4.63 billion in the three-month period, up 7.1% year-on-year.