Vietnam attracts $18 bln in Jan-July FDI, Amkor top investor

Registered foreign direct investment (FDI) in Vietnam hit $18 billion in the year to July 20, up 10.9% year-on-year, according to the Ministry of Planning and Investment.

Of this, $10.76 billion was pledged for 1,816 newly-registered projects, up 35.6% and 11.6% year-on-year, respectively. Additional capital for 734 existing projects reached $4.97 billion, down 0.3% and up 19.4%; while $2.27 billion came from 1,795 capital contributions and share acquisition deals, down 45.2% and 3.1%, respectively.

By sector, manufacturing-processing recorded the biggest figure of $12.65 billion, or 70.3% of the total registered capital, followed by real estate with $2.87 billion, or 16%.

Locality-wise, the northern province of Bac Ninh was the most attractive FDI destination with $3.2 billion, triple year-on-year and accounting for 17.8% of the national total. Other top localities were the northern coastal province of Quang Ninh with $1.56 billion and Ho Chi Minh City with $1.55 billion.

A major project that pushed Bac Ninh to the top was one worth $1.07 billion initiated by U.S.-headquartered semiconductor giant Amkor Technology Inc.

Singapore was the biggest FDI provider during the period with $6.52 billion, or 36.2% of the total, up 79.1% year-on-year. Other major contributors were Hong Kong with $2.19 billion, Japan with $1.91 billion, mainland China with $1.65 billion, and South Korea with $1.58 billion.

The ministry noted that all top five partners were traditional ones from Asia, accounting for 77% of Vietnam’s total FDI intake during the period.

The ministry highlighted the trend of semiconductor, energy (manufacturing of batteries and solar cells) and electronics sectors becoming major FDI magnets.

It also noted that most of the FDI went to localities with strong infrastructure, stable workforce, investment promotion activities and simplified administrative procedures, like Bac Ninh, HCMC, Ba Ria-Vung Tau, Hanoi, Hai Phong, Binh Duong, Dong Nai, Bac Giang, and Thai Nguyen.

In the seven-month period, the FDI disbursement reached $12.55 billion, up 8.4% year-on-year.

Vietnam has so far attracted 40,777 valid FDI projects with a total registered capital of $487 billion. Disbursement has reached $309.7 billion, or 63.6% of the registered FDI capital, government data shows.