Workers at an FDI firm in HCM City (Photo: bnews.vn)

HCM City (VNA) – Foreign direct investment (FDI) in HCM City, the country's major economic hub, has fallen 38 percent year-on-year since the beginning of this year, according to the city's Statistics Office.

As of the middle of May, the office reported total FDI of approximately 650 million USD.

Nearly 280 FDI projects were awarded investment certificates, worth a total of 482 million USD. Some 48 projects had value added with a capital of 166 million USD.

According to the office, total FDI flow significantly dropped by 408 million USD over the same period last year.

Of the total, 47.9 percent was from the Cayman Islands with four projects worth over 230 million USD.

The following were Japan with 42 projects, Singapore with 38 projects, the Republic of Korea with 50 projects, and Malaysia with nine projects.

Tran Viet Ha, Head of the Investment Department of the HCM City Export Processing and Industrial Zones Authority (Hepza), said the city had no new big projects in the garment and textile sector, which had caused FDI figures to fall.

In other sectors, no new projects worth 50 million USD or more have begun this year, Ha was quoted as saying in Dau Tu (Investment Review) Newspaper.

The city's Statistics Office said that most of the projects were in the sectors of real estate, finance and telecommunications.

FDI poured into HCM City, however, was expected to increase at the end of this year.

According to Vietnam Investment Review, at a recent press conference, Hepza announced that there could be a number of projects this year, including one worth 500 million USD to develop solar energy.-VNA