Registered FDI in Vietnam hits $15.2 bln in H1, Bac Ninh top recipient

Registered foreign direct investment (FDI) in Vietnam reached $15.2 billion in the year to June 20, up 13% year-on-year, the Ministry of Planning and Investment reported.

Of the total, $9.54 billion was pledged for 1,538 newly-registered projects, up 46.9% and 18.9% year-on-year, respectively.

Additional capital for 592 existing projects reached $3.95 billion, down 6.3% but up 35% year-on-year, respectively; while $1.7 billion came from 1,420 capital contributions/acquisition deals, down 57.7% and 10.9%, respectively.

By sector, manufacturing-processing recorded the biggest figure of $10.69 billion, or 70.4% of the total registered capital, followed by real estate with $2.47 billion, or 16.3%.

Locality-wise, the northern province of Bac Ninh passed Ba Ria-Vung Tau province in southern Vietnam to become the most attractive destination with $2.58 billion, tripling year-on-year.

The Ministry of Planning and Investment attributed Bac Ninh's success to a $1.07-billion project invested by the U.S.-headquartered Amkor Technology Inc., which makes semiconductors.

In June, Bac Ninh province also granted an investment registration certificate to Taiwanese electronic giant Foxconn, a major Apple supplier, for a $383.3 million project to manufacture printed circuit boards (PCB).

Ba Ria-Vung Tau province came in second place with $1.54 billion, up 1,129% year-on-year. The ministry noted the surge was thanks to a $730-million plant invested by Hyosung Dong Nai Co., Ltd. to produce bio-based (1,4 Butanediol) BDO which is an important compound used as a starting material for the production of important polymers.

Other key recipient locations were the northern coastal province of Quang Ninh with $1.36 billion, Hanoi with $1.18 billion, the northern coastal city of Hai Phong with $1.14 billion, and Ho Chi Minh City with $1.12 billion.

Regarding sources, Singapore accounted for the biggest portion of $4.8 billion, or 36.7% of the total, up 86% year-on-year. Other major contributorss were Japan with $1.73 billion, Hong Kong with $1.73 billion, South Korea with $1.41 billion, mainland China with $1.3 billion, and Taiwan with $1.05 billion.

In the year to June 20, disbursed FDI had reached $10.84 billion, up 8.2% year-on-year.

As of June 20, Vietnam had attracted 40,544 FDI projects with total registered capital of $484.77 billion. The disbursement was $308 billion, equivalent to 63.5% of the registered FDI capital.