Medicines are produced at German-invested B. Braun Vietnam in Hanoi's Thanh Oai Industrial Complex Read (Source: VNA)
Hanoi (VNA) – Disbursement of foreign direct investment (FDI) capital in 2016 was estimated at 15.8 billion USD as of December 26, a record high and up 9 percent on a yearly basis, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

The number of projects granted licences in the year to December 26 was 2,556 with 15.1 billion USD in total register capital, up 27 percent year on year in project number but equal to just 97.5 percent of capital.

In the same period, 1,225 projects asked to add 5.76 billion USD to their capital.

Meanwhile, foreign investors purchased stakes worth more than 3.4 billion USD in 2,547 firms and economic organisations.

All in all, FDI capital inflow in 2016 totalled 24.4 billion USD.

The FDI sector posted an estimated export value (including crude oil) of 125.9 billion USD for the year, up 10.2 percent from 2015 and accounting for 71.55 percent of the country’s total export revenue. Non-oil export value was estimated at 123.55 billion USD, an increase of 11.8 percent over 2015 and making up 70.2 percent of the nation’s total export revenue.

The Foreign Investment Agency said the drop in new registered capital and additional capital was attributable to a lack of large-scale projects.

Two major projects, the 2.5 billion USD Nghi Son 2 power plant and the 2.5 billion USD Vung Ang 2 power plant, were initially hoped to receive licences this year, but they have now been delayed to 2017.

While FDI was poured into 19 sectors, the manufacturing and processing sector absorbed the biggest share of FDI capital with 63.7 percent or 15.53 billion USD, followed by the automobile and motorbike wholesale, retail and repair with 7.79 percent (nearly 1.9 billion USD), and real estate with 6.9 percent (1.68 billion USD).

Among 95 countries and territories investing in Vietnam in 2016, the Republic of Korea led in the term of capital with 7 billion USD (28.8 percent of the total). Japan came second with 2.58 billion USD (10.62 percent), and Singapore was third with 2.41 billion USD (9.9 percent).

Ho Chi Minh City led cities and provinces nationwide in attracting FDI, absorbing 3.42 billion USD (14 percent of the total). The northern port city of Hai Phong came next with 2.98 billion USD (12.26 percent). Hanoi, Binh Duong and Dong Nai followed with 2.79 billion USD, 2.36 billion USD and 2.23 billion USD, respectively.

Most remarkable among new FDI projects licensed in 2016 include the LG Display Hai Phong worth 1.5 billion USD invested by the RoK’s LG Display Co Ltd, the 550 million USD LG Innotek Hai Phong, invested by LG Innotek also of the RoK, and the Dam Nha Mac sea port-industrial park complex in Quang Ninh worth 315.46 billion USD invested by CDC of the Cayman Islands.-VNA