Foreign investment capital registered in Vietnam decreased while disbursed capital increased significantly over the same period last year.
According to the Foreign Investment Agency under the Ministry of Planning and Investment, as of June 20, the total newly registered, adjusted, and contributed capital, and purchased shares from foreign investors reached $15.27 billion. However, this figure is only 97.4 per cent compared to the same period in 2020.
Specifically, in the first half of the year, 804 new projects were granted investment registration certificates, with a total registered capital sum of nearly $9.55 billion, down 43.3 per cent in quantity but up 13.2 per cent in capital on-year.
In addition, 460 projects registered to adjust investment capital with the total additional registered $4.12 billion, down 12.5 per cent in quantity and up 10.6 per cent in capital over the same period.
In addition, there were 1,855 instances of capital contribution and share purchases by foreign investors, with $1.61 billion, down 55 per cent in quantity and 54.3 per cent in capital on-year.
According to the FIA, investment through capital contribution and share purchase continues to decrease due to the general trend in 2021. The COVID-19 pandemic has greatly affected the mergers and acquisitions (M&A) market in the world in general and Vietnam.
Movement restrictions in the context of the pandemic have significantly affected the ability of foreign investors to make investment decisions.
Besides, some large M&A transactions in the first six months of last year (and a lack of such standout deals so far this year) was another cause behind the decrease in M&A value this year.
The agency stated that despite a decrease in both the number and value of capital contributions, share purchases, the gap is gradually narrowing.
However, while the registered capital is declining, disbursed foreign investment capital is still estimated at $9.24 billion in the past six months, up 6.8 per cent over the same period in 2020.
In the first half, foreign investors invested in 18 industries. Of these, the processing and manufacturing industry led the way with the total investment of $6.98 billion, accounting for 45.7 per cent of the total registered capital.
Electricity production and distribution ranked second, worth $5.34 billion – nearly 35 per cent of the total. They are followed by the real estate business, science and technology with $1.15 billion and $476 million, respectively.
Singapore led with $5.64 billion, up 3.6 per cent over the same period in 2020. Japan ranked second with a total $2.44 billion, increasing 66.8 per cent over the same period. South Korea ranked third with $2.05 billion, up 43.6 per cent over the same period.