Disbursement of foreign direct investment (FDI) in the first 10 months was marginally up 7.1 per cent against the same period last year to reach US$9 billion, according to the Foreign Investment Agency (FIA).
Vehicles are assembled by the wholly Malaysia-invested JRD Co in the central province of Phu Yen. Foreign investment disbursements rose in the first 10 months, while newly registered and additional capital commitments weakened. — VNA/VNS Photo Hong Ky
HA NOI —
The year's target is $10-11 billion.
In October alone, disbursement of FDI hit $950 million, up $50 million against the average monthly disbursement rate of about $900 million since the beginning of this year.
However, newly registered capital and additional capital for existing projects amounted to just $604 million in October. Of which, $184 million was registered capital for 39 new FDI projects, and $420 million was invested in 57 existing projects, the FIA said.
Some industry experts believed that existing projects were trying to expand business in the closing months of the year.
During the ten-month period, the nation attracted $11.59 billion in 759 newly registered projects, down 28.8 per cent in terms of value, equalling a 19.1 per cent decline in project numbers year on year. Another additional $1.2 billion went to 210 existing projects.
In total, FDI of both newly registered and additional capital for existing projects for the past 10 months was $12.79 billion, down 41.9 per cent against the same period last year, and far below the annual target of $22-25 billion.
The Netherlands was the leading source of foreign investment in Viet Nam, registering $2.227 billion, followed by South Korea with $2.142 billion and the US with $1.924 billion.
The processing and manufacturing sector attracted the lion's share of FDI, gobbling up $4.065 billion over a 10 month period. Export turnover of this sector reached $31 billion, up 25.8 per cent year on year. Business advantages were described as one of the main reasons for the large influx of FDI into the sector.
Production, electricity and water distribution, air-conditioning contributed $2.943 billion, while the real estate sector ranked third in FDI attraction, hitting $2.854 billion. — VNS