Business

Foreign investors' confidence in Vietnam consolidated: Insiders

Vietnam’s rosy economic prospects have helped consolidate the confidence of foreign firms in the country, as reflected through their investment of 6.17 billion USD in the first quarter of this year, up 13.4% year-on-year.
Foreign investors' confidence in Vietnam consolidated: Insiders ảnh 1Vietnam attracts 6.17 billion USD in foreign direct investment (FDI) as of March 20, a year-on-year rise of 13.4%, according to the Foreign Investment Agency under the Ministry of Planning and Investment. (Photo: VNA) 
Hanoi (VNA) – Vietnam’s rosy economicprospects have helped consolidate the confidence of foreign firms in the country, asreflected through their investment of 6.17 billion USD in the first quarter ofthis year, up 13.4% year-on-year.

Of the sum, newly registered capital stood at 4.77billion USD, a rise of 57.9% from the corresponding time last year.Meanwhile, 934.6 million USD was added to 248 existing projects, and 466.2million USD earmarked for stake purchase and capital contribution. These are down 22.6%and 61.7% in value, respectively, according to the Foreign Investment Agencyunder the Ministry of Planning and Investment.

The disbursed foreign investment rose by 7.1% in thefirst quarter to 4.63 billion USD, a sign that the disbursement willcontinue the positive trend, the agency said.

Foreign investors poured capital into 17 out of the 21economic sectors, among which the manufacturing and processing industry tookthe lead with a total registered capital of 3.93 billion USD, a decreaseof 1.3% from the same period last year.

The realestate sector came second with a total registered capital of 1.58 billion USD,2.1 times the figure of the same period last year, followed by thewholesale and retail industry and science and technology with investment of224.8 million USD and 190.2 million USD, respectively.

The foreigninvestment influx came from 62 countries and territories. Singapore was thebiggest investor in Vietnam in the period with a total registered capital of over2.55 billion USD, up by 51.3%, followed by Hong Kong (China) with 1.05 billionUSD, 2.3 times higher.

The capitalcity of Hanoi was the top FDI destination with an influx of 970.8 million USD,rising by 6.1 times over the same period last year, followed by the northern provinceof Bac Ninh with 745.2 million USD.

Nestle Vietnam, which has been operating in Vietnamfor nearly 30 years, has earmarked an additional 100 million USD todouble the processing capacity of high quality coffee lines of its factory inDong Nai, helping the southern province enter the list of Vietnam's top 10localities in FDI attraction in the period.

Binu Jacob, General Director of Nestlé Vietnam, saidthrough the project, the firm hopes to generate more job opportunities andexpand its long-term operation in Vietnam.  

Director of the Department of Industry andConstruction Statistics under the General Statistics Office Phi Thi Huong Ngacalled FDI attraction a bright spot that contributed to the country’s economic achievementsin the three months, marking a good start for the year.

However, foreign investors shared the view that apartfrom political stability and improved human resources, limitations still remainsuch as cumbersome administrative procedures, volatile investment attractionpolicies, and an incomplete supply chain.

Given this, Prof. Dr. Nguyen Mai, Chairman of theVietnam's Association of Foreign Invested Enterprises (VAFIE), suggested that thetop priority should be given to perfecting institutions and legal regulations.

Ranjit Thambyrajah, Chairman and CEO of AcuityFunding, said Vietnam needs to invest further in education and training toprovide industries with a competent workforce.

At the same time, the country should build fullyintegrated and energy-neutral industrial parks suitable for the future ofmanufacturing, he said./.
VNA
#Vietnam #FDI #Ministry of Planning and Investment #Nestlé Vietnam #administrative procedures #supply chain #Acuity Funding #Vietnam #VietnamPlus #Vietnam news
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