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Vietnam FDI attraction reaches nearly US$30 billion in 2020

As of December 20, the total foreign direct investment (FDI) into Vietnam reached US$ 28.5 billion, a year-on-year decrease of 25%, according to statistics by the Ministry of Planning and Investment.

There were 2.523 new registered projects with a total capital of US$ 14.6 billion, down by 35% and 12.5% in project numbers and value respectively compared to the same period last year, Baodautu reported.

As many as 1.140 existing projects were allowed to raise the investment capital by more than US$ 6.4 billion in total, a year-on-year increase of 10.6 %.

In terms of capital contribution and share purchases, there were 6.141 times of capital contribution and share purchase by foreign investors totaling US$7.5 billion, declining 51.7% over the same period.

Given the complicated development of the Covid-19 pandemic, production – business activities have been affected causing the realized investment capital of foreign investment projects in 2020 to slightly decrease compared to 2019. Specifically, the disbursement of foreign direct investment capital is estimated at 19.98 billion USD, equivalent to 98% over the corresponding period last year.

Many foreign-invested enterprises are gradually recovering, maintaining well their production activities. More importantly, there are still many foreign investors keen on investing in Vietnam.

Statistics from the Ministry of Planning and Investment indicated that nearly 300 foreign enterprises have plans to expand investment in the country, 60 of which have achieved initial results in carrying out their plans.

FDI capital was invested into 19 sectors, in which the manufacturing and processing industry took the lead after receiving over US$13.6 billion, or accounting for 47.7% of the total. It was followed by power production and distribution with over US$5.1 billion, or occupying 18% of the total, real estate with US$4.2 billion, and wholesale and retail with US$1.6 billion.

There were 112 countries and territories investing in Vietnam in 2020. Among them, Singapore took the lead with nearly US$9 billion or 31.5 percent of the accumulative capital. It was followed by the Republic of Korea, China, Japan, Taiwan, and Hong Kong.

Notably, a US$34.6 billion trade surplus in the FDI sector offset a 15.6 billion trade deficit in the domestic sector, which helped the whole economy obtain a trade surplus of US$19.1 billion.

Several big projects invested in 2020 include the Bac Lieu Liquefied Natural Gas (LNG) power plant project with registered capital of US$4 billion. It was followed by the Southern Vietnam Petrochemical Complex project (Thailand) in Ba Ria-Vung Tau and the West Lake Urban Center project (South Korea) in Hanoi.