FDI from the EU to Vietnam starts to rise significantly
Foreign direct investment (FDI) from the European Union (EU) to Vietnam have started to recover this year after a decline-trend in four consecutive years, according to a report from Foreign Investment Agency under the Ministry of Planning and Investment.
The report released by Foreign Investment Agency this week showed that at present, 23 EU countries have invested in Vietnam with the number of existing projects at 1,688 and the total investment capital worth 21 billion USD. Average investment is 12.6 million USD per project.
In the 1988 - 1994 period, the registered capital of the EU in Vietnam remained modestly. However, the FDI from the EU grew significantly in 1995 reaching 707 million USD from only 15 million USD in 1988.
The FDI from the region continued to rise in 1997, 2000 and 2001, of which, most of investments came from the United Kingdom (UK) and the Netherlands.
However, from 2002 - 2004, the percentage decreased to 16.8% due to the EU's low demand in investing abroad.
The EU's investment in Vietnam recovered to reach 1.7 billion USD in 2005 and continuously rose to 2.3 billion USD in 2008 but then decreased to about 450 million USD in 2009.
The FDI gained a highest growth of 2.6 billion USD in 2010.
The FDI from the EU has recovered after reduction from 2011 to 2014 due to recession in the global economy.
The report reflected that the EU's total investment in Vietnam in the first six months of this year reached 600 million USD, nearly the same as in 2013 and even higher than in the entire 2014.
According to the agency, EU's investment is mainly concentrated in large cities such as Hanoi and HCM City as well as provinces and cities with oil and gas resources or large industrial zones including Binh Duong, Dong Nai, Ba Ria-Vung Tau, and Da Nang, in addition to Hai Phong, Khanh Hoa and Hai Duong. Large amounts of FDI were poured into Hanoi and HCM City.
The EU investors have mainly poured their money into the processing and manufacturing sector, with 573 projects and a total investment of 6.29 billion USD, accounting for 32% of the total FDI. Their other key investment sectors have included the power production and real estate sectors, with 19 projects and a total investment of 3.5 billion USD, accounting for 17.8% of the total FDI.
In the 1988 - 1994 period, the registered capital of the EU in Vietnam remained modestly. However, the FDI from the EU grew significantly in 1995 reaching 707 million USD from only 15 million USD in 1988.
The FDI from the region continued to rise in 1997, 2000 and 2001, of which, most of investments came from the United Kingdom (UK) and the Netherlands.
However, from 2002 - 2004, the percentage decreased to 16.8% due to the EU's low demand in investing abroad.
Photo for illustration
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The FDI gained a highest growth of 2.6 billion USD in 2010.
The FDI from the EU has recovered after reduction from 2011 to 2014 due to recession in the global economy.
The report reflected that the EU's total investment in Vietnam in the first six months of this year reached 600 million USD, nearly the same as in 2013 and even higher than in the entire 2014.
According to the agency, EU's investment is mainly concentrated in large cities such as Hanoi and HCM City as well as provinces and cities with oil and gas resources or large industrial zones including Binh Duong, Dong Nai, Ba Ria-Vung Tau, and Da Nang, in addition to Hai Phong, Khanh Hoa and Hai Duong. Large amounts of FDI were poured into Hanoi and HCM City.
The EU investors have mainly poured their money into the processing and manufacturing sector, with 573 projects and a total investment of 6.29 billion USD, accounting for 32% of the total FDI. Their other key investment sectors have included the power production and real estate sectors, with 19 projects and a total investment of 3.5 billion USD, accounting for 17.8% of the total FDI.
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