FDI inflows drop 15.1 percent year on year in first half

Hanoi (VNA) – Vietnam recorded a year-on-year decrease of 15.1 percent in foreign direct investment (FDI) inflows to 15.67 billion USD as of June 20, according to the Ministry of Planning and Investment (MPI).

The value included 8.44 billion USD registered for 1,418 new projects, over 3.7 billion USD added to 526 existing projects, and 3.51 billion USD spent on contributing capital to or purchasing shares of domestic firms.

Among 18 sectors receiving foreign capital, the processing – manufacturing industry attracted the most – more than 8 billion USD or 51.1 percent of the total. It was followed by electricity production and distribution (3.95 billion USD, or 25.2 percent), wholesale – retail (1.08 billion USD), and real estate (nearly 850 million USD).

Meanwhile, 98 countries and territories invested in Vietnam during the period. The largest investors were Singapore (5.44 billion USD, equivalent to 34.7 percent of the total), Thailand (1.58 billion USD, 10.1 percent), and China (1.58 billion USD, 10.1 percent), followed by Japan, the Republic of Korea, and Taiwan (China), statistics show.

Foreign investors channeled capital into 57 provinces and centrally-run cities, with Bac Lieu province the top destination (4 billion USD, 25.5 percent of the total), followed by Ho Chi Minh City (over 2 billion USD, 12.9 percent), Ba Ria – Vung Tau province (1.95 billion USD, 12.4 percent), Hanoi, Binh Duong province, and Hai Phong city.

In its report, the MPI also pointed out that exports by the FDI sector in the first six months declined in both value and their proportion in Vietnam’s total overseas shipments, estimated at 79.8 billion USD (including crude oil) – equivalent to 93.3 percent of the figure in the same period last year and 65.9 percent of the country’s total figure, and 79 billion USD (excluding crude oil) – equivalent to 93.6 percent of the figure in the same period last year and 65.2 percent of the six-month value.

This sector’s imports stood at 65.6 billion USD, representing 94.6 percent of the figure in the same period last year and 56 percent of the country’s total imports in the first half of 2020.

FDI firms still posted a trade surplus of 14.2 billion USD, including crude oil, and 13.4 billion USD, excluding crude oil, during the period. That helped make up for the deficit of nearly 10.2 billion USD in the domestic sector, contributing to Vietnam’s trade surplus of over 4 billion USD during the six months, the MPI noted./.