However, new FDI during the period totalled just US$83.09 billion, a drop of 27% year-on-year.
The period also witnessed a significant slump in added investment capital. Only 73 operating projects registered to increase their levels of capital by a total of US$1.16 billion– 60% of the figure in the corresponding period last year. This added investment will bring the total amount of FDI committed to the country in the first four months of the year to US$4.26 billion, a yearly reduction of 32%.
Among the largest projects are the Japan-invested Tokyu Binh Duong urban area worth US$1.2 billion, a tyre manufacturing plant worth US$575 million, a US$300 million fibre production plant and a US$180 million shipbuilding factory financed by Oshima Shipbuilding Vietnam.
Processing and manufacturing surpassed real estate to become the most attractive sector to foreign investors. It was worth US$2.3 billion, accounting for 55.6% of the total FDI.
The real estate sector ranked second with US$1.57 billion, making up 37% of the total FDI, while the transport and storage sectors came third, worth US$180 million.
Out of 32 nations and territories, Japan was the leading source of foreign investment, pumping US$2.86 billion into Vietnam in the first four months. It was followed by the British Virgin Islands, which invested US$438 million and Hong Kong, US$351 million.
Southern Binh Duong province drew the largest share of FDI, worth US$1.58 billion, with northern Hai Phong city in second at US$664 million and Ho Chi Minh City in third with US$460 million.
A marked slowdown in FDI inflows in the first quarter of 2012 has not deterred Ho Chi Minh City from targeting total FDI investments of US$2.5 billion for the whole year.
According to the Ho Chi Minh City Department of Planning and Investment, in the first quarter of the year, Ho Chi Minh City attracted registered FDI capital of US$65.7 million, just 5.83% of amount in the same period of 2011.
Nevertheless, the city is focusing on achieving the ambitious annual target through the finance and banking, insurance, transport and logistics, import-export services, and telecommunication technology industries, the deputy director of the department, Lu Thanh Phong, told the Vietnam Investment Review.
The city is also seeking to boost FDI in the real estate consulting services, healthcare, tourism and education sectors, as also in the field of science and technology, he said.
The city will also pay attention to hi-tech industries and sectors of high added value such as electronic engineering, information technology, pharmaceutical chemicals, rubber, food processing and bio-technology industries, he added.
Energy saving technologies and supporting industries will be other areas of focus, he said.
Phong said that in the Thu Thiem Urban Area, the city will give priority to key projects including the development of low-income buildings in the residential area located south of the East-West Highway, office buildings along the East-West Highway, luxury hotels in the eastern part of the city, a convention centre and a financial centre, and a multi-purpose sports complex. The city will call for investment from Japanese investors in the Hiep Phuoc IP.
It is also seeking FDI from the US, the European Union, and the Northeast Asian countries, Phong said.
From the US, the city is calling investments in hi-tech industries, supporting industries and health care services. Investment is sought from Germany, Belgium and Holland for projects in solar energy, bio-technology and IT, he added.
'The FDI target can be reached if these measures are carried out synchronously and comprehensively,' Phong said.
Regarding the price-transfer issue, where FDI enterprises had their local subsidiaries suffer losses by importing components at high prices and selling finished products at lower prices in their books, Phong said his department provided information on firms doing this to the city's Taxation Bureau for follow up action.