Vietnam attracts $4 billion FDI capital despite COVID-19 crisis
Although the COVID-19 crisis is deepening across the globe, Vietnam managed to woo $4 billion in FDI capital in the first quarter.
As of March 20, 2020, the total newly and additionally registered capital and capital contributed and shares purchased by foreign investors was $8.55 billion, equaling 79 per cent of the same period in 2019, according to a report by the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.
The disbursed capital of foreign direct investment (FDI) projects was estimated at $3.85 billion, equaling 93 per cent of the corresponding period last year.
In the first quarter, the whole country granted investment certificates to 758 new foreign-invested projects, including 100 per cent foreign-invested and joint-venture projects between local and foreign entities with a total newly registered capital of $5.5 billion, up 45 per cent against the same period in 2019.
The increase in registered capital is attributable to the Singapore-financed $4 billion Bac Lieu liquefied natural gas-fired thermal power plant, which received an investment licence in January.
In addition, there were 236 projects registered to adjust capital with a total additionally registered capital of $1.07 billion, equaling 82 per cent of the same period in 2019.
Also in the first quarter of 2020, the whole country saw 2.523 instances of capital contribution and share purchases by foreign investors with a total value of capital contributions reaching $2 billion, up 53 per cent against the same period last year and capturing nearly 34 per cent of the total registered capital.
As of March 20, 2020, Vietnam had nearly 32,000 valid projects with a total registered capital of $370 billion. The accumulated disbursed capital of FDI projects was estimated at $215.6 billion, equalling 58 per cent of the total valid registered capital.
By investment field, foreign investors have invested in 18 industries, in which production and distribution of electricity accounted for the highest proportion, followed by the processing and manufacturing sector as well as the wholesale and retail sector.
Featured image credit: VIR