The total FDI that Vietnam has attracted in the first six months of this year has reached 13.43 billion USD. (Photo: VNA) Only a few days after Do Nhat Hoang, Director of the ForeignInvestment Agency under the Ministry of Planning and Investment (MPI), announcedthat many large-scale projects, including billion-USD ones from Republic ofKorea (RoK) firms are waiting to enter Vietnam, Hai Phong authorities on Jun 26 handed over a licence to LG Innotek Vietnam Hai Phong Co., Ltd. to add over 1 billion USD to its project in the northern port city, raising its total investment to over2.05 billion USD.
However, the sum has yet to be counted in the totalamount of FD in Vietnam in the first six months of 2023 when the additionalcapital poured into underway projects was recorded at 2.93 billion USD, down57.1% year on year.
The reasons behind the decline include a lack of expansionof big projects, while a large amount of the added capital recorded in the first halfof 2022 at 6.82 billion USD.
However, insiders noted that the situation has been improved,as the total FDI that Vietnam has attracted in the first six months of this year has reached 13.43billion USD, a decrease of only 4.3% year on year, a lower level than adownturn of 7.3% in the five months, 17.9% in the four months, and 38.8% in the threemonths.
The LG Innotek Vietnam Hai Phong Co., Ltd. to add over 1 billion USD to its project in Hai Phong. (Photo: baodautu.vn) Once the capital injected in LG Innotek project is recorded,the chance for FDI in Vietnam to reverse is high.
Particularly, in the first half of this year, 10.2 billionUSD of FDI was disbursed, up 0.5% year on year.
Hoang said that the increase in the disbursement rate showedthe efficiency of the Government’s efforts to support businesses inimplementing their projects.
However, according to Hoang, although many large-scale firmsare showing interest in Vietnam, they have remained cautious in giving finaldecisions.
He said that Japanese and RoK investors have tended to slow down in making investment decisions to consider internal problems of the economy and the US’sencouragement of investors to switch production chains from China to othercountries.
Meanwhile, investors from Taiwan (China) are flocking toVietnam, especially in the fields of electricity, electronics, technology andelectric vehicles. Chinese firms are also establishing new productionfacilities outside the country to make full use of the host countries’advantages.
Right after China’s reopening, Chinese investors haveflocked to Vietnam. In the first six months of this year, China ranked third in terms of registered FDI in Vietnam with 1.95 billion USD, and ranked first in the number ofnew projects, accounting for 18% of the total 1,293.
Polytex Far Eastern Vietnam Ltd from Taiwan plans to invest an additional 250 million USD in Vietnam in the third quarter of 2023, raising its total investment to over 1 billion USD. Meanwhile, ChengLoong, also from Taiwan, is implementing the second phase of its 1-billion-USDproject in Vietnam.
Xiamen Hithium Energy Storage Technology and Growatt NewEnergy from China are also reportedly considering to invest a total of 1 billion USDin Vietnam.
These are positive news, and if realised, the FDI flows into Vietnam will increase remarkably in the coming time./.
VNA
