Workers manufacture mechanical gear at Japanese-invested RK Engineering Co. ltd. in Dinh Vu Industrial Zone in Hai Phong city (Photo: VNA) Hanoi (VNA) - Vietnamhas remained an attractive destination for foreign investors in 2017 with totalFDI capital registered in the country hitting a record high of 35.88 billionUSD, up 44.4 percent against last year.
Reportsfrom the Foreign Investment Agency under the Ministry of Planning andInvestment showed that of the sum, 21.27 billion USD came from 2,591 newprojects, up 42.3 percent against last year.
Another 8.41billion USD was added to 1,188 existing projects, 49.2 percent higher than lastyear.
Theremainder of the FDI, worth 6.19 billion USD, came from 5,002 deals made byforeign investors to contribute capital to businesses and to buy shares ofVietnamese businesses, jumping 45.1 percent compared to last year.
In 2017,FDI disbursement also saw a record setting, as it increased 10.8 percent to 17.5billion USD. In the previous years, the capital influx reached only some 11-12billion USD.
Among 19industries and sectors attracting FDI capital in 2017, the manufacturing-processingindustry remained the top sector, receiving 15.87 billion USD, accounting for44.2 percent of the total registered FDI.
Theelectricity production and distribution sector ranked second with 8.37 billionUSD, representing 23.3 percent of the total FDI. The real estate sector was inthird place with 3.05 billion USD, totalling 8.5 percent.
Among 115countries and territories investing in Vietnam this year, Japan topped thelist, with 9.11 billion USD, making up 25.4 percent of the FDI pledged to thecountry. It was followed by South Korea with 8.49 billion USD or 23.7 percent ofthe FDI, and Singapore with 5.3 billion USD or 14.8 percent.
Thesouthern economic hub of HCM City was at the top, among 59 localities receivingFDI during the year, followed by the northern province of Bac Ninh and thecentral province of Thanh Hoa.
Amongsome of the mega projects in 2017 were three BOT thermal power projects.They were Japan’s 2.8 billion USD Nghi Son 2 thermal power plant in the centralprovince of Thanh Hoa, Japan’s 2.58 billion USD Van Phong 1 thermal powerplant in the central province of Khanh Hoa and Singapore’s 2.07 billion USD NamDinh 1 thermal power plant in the northern province of Thai Binh.
Largeprojects in other industries included the Republic of Korea’s 2.5 billion USD Samsungexpansion project in the northern province of Bac Ninh, the 1.27-billion USDBlock B O Mon gas pipeline project in the Mekong Delta province of Kien Giangand the Republic of Korea’s 885.85 million USD smart complex projectin HCM City’s Thu Thiem New Urban Area.
To fullycapitalise on the FDI capital source in the new stage, the Ministry of Planningand Investment is drafting the foreign direct investment strategy for2018-23. With assistance from the World Bank, the FDI strategy drafts thatVietnam at this stage should focus on sectors having advantages, and those thatforeign firms could bring more benefits to, rather than domestic firms.
Under the draft strategy, Vietnam should set out prioritysectors for attracting FDI, such as those that needs increased value andcompetitiveness, including manufacturing (high-grademetals/minerals/chemicals/plastics and high-tech/electronic components); service(logistics and maintenance, repair and overhaul); agriculture (innovativeand high value agricultural products such as rice, coffee, seafood,fruits); and travel (high-value tourism services).-VNA
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