31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Investment / News
Vietnam's FDI disbursement rises nearly 7% in Jan-May
Ngoc Mai 05:32, 2021/05/28
FDI commitments to the country returned to positive trend by an expansion of 0.8% year-on-year to US$14 billion.

Disbursement of foreign direct investment (FDI) to Vietnam rose by 6.7% year-on-year in the first five months of this year to US$7.15 billion, a report of the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment has shown.

 Production at General Electric in Haiphong. Photo: Le Sang

Meanwhile, FDI commitments to the country returned to a positive trend by an expansion of 0.8% year-on-year to US$14 billion.

“Vietnam’s outlook for FDI attraction this year remains bright as investors from developing countries are shifting their investment activities here,” noted the General Statistics Office (GSO).

“Thanks to Vietnam’s effective containment of the pandemic and social-political stability, high-quality FDI inflows from the US, Japan, or South Korea have turned to Vietnam as a way to diversify their supply chains and reduce dependence on the Chinese market,” it noted.

To grasp new opportunities from the new investment wave, the GSO said Vietnam is offering incentives and support for quality FDI projects, especially those with high spillover effects to socio-economic development.

Meanwhile, the GSO expects the government to continue perfecting the legal frameworks to create a fair and convenient investment/business environment for all investors.

Singapore remains the largest investor in Vietnam

Year to May 20, Vietnamese authorities approved 613 new projects with total registered capital of US$8.83 billion, down 49.4% in the number of projects but up 18.6% in capital year-on-year, while 342 existing projects have been injected an additional US$3.86 billion, down 21.6% in number but up 11.7% in the capital. 

During this period, 1,422 projects had over US$1.3 billion in capital contributed by foreign investors, down 59.7% in the number of projects and 56.3% in value year-on-year.

Investors have poured money into 18 fields and sectors, in which manufacturing and processing led the pack with investment capital of nearly US$6.14 billion, accounting for 43.9% of total registered capital. Electricity production and distribution came second with US$5.43 billion, or 38.8%, followed by real estate with US$1.05 billion.

FIA’s report added that out of 70 countries and territories having projects in Vietnam in the first five months of the year, Singapore took the lead with US$5.26 billion, or 37.6% of the total registered FDI for new projects, followed by Japan with US$2.59 billion, or 18.5% and South Korea with US$1.83 billion or 13.1%.

Among 56 cities and provinces having received FDI in the January-May period, the southern province Long An has attracted the largest portion of capital commitments with US$3.35 billion, or 23.9% of the total. Ho Chi Minh City came second with nearly US$1.34 billion (9.6%), followed by the southern city of Cantho with US$1.32 billion (9.4%).

As of present, Vietnam is home to 33,615 valid foreign investment projects with a combined registered capital of US$396.86 billion, while the disbursed amount stood at US$240 billion, or 60.5% of the committed amount.

Big-ticket projects in January-May include the Long An liquefied natural gas (LNG) power plant project worth US$3.1 billion from Singaporean investors; US$1.31-billion O Mon II thermal power plant from Japanese investors; an additional injection worth US$750 million into LG Display Haiphong from South Korean investors; a tire manufacturing plant in the southern province of Tay Ninh with an additional fund of US$312 million; and Kodi New Material Vietnam manufacturing plan from Singaporean investor worth US$270 million to make tablets and laptops in the northern province of Bac Giang.
TAG: Vietnam FDI Singapore Japan covid-19 China South Korea
Other news
21:36, 2023/36/12
Laos vows to facilitate Vietnam's investors
The Government of Laos pledged to amend the law to facilitate the investment of Vietnamese companies that have poured more than US$5.34 billion in the neighboring country so far.
17:49, 2023/49/02
Hanoi lures nearly $1.7 billion in foreign investment in 2022
The capital city ranks among the top localities in foreign direct investment attraction.
17:33, 2022/33/11
European Investment Bank will provide Vietnam climate finance
Vietnam's Minister of Finance will visit Luxembourg soon to discuss the update of mutual agreements and address issues in regard to EIB-funded projects in the Southeast Asian country.
16:56, 2022/56/09
Vietnam stands as credible partner for foreign investors
The Vietnamese Government has made efforts to create favorable conditions for local and foreign businesses to ensure their long-term operation.
12:47, 2022/47/01
Vietnamese Gov’t to divest state capital at 141 businesses until 2025
The Government is determined to accelerate the divestment and privatization process at state firms that have stagnated due to the impacts of the Covid-19 pandemic.
17:42, 2022/42/11
IFC assists Vietnam to boost green finance for a low-carbon economy
Capital markets have a big role to play in Vietnam’s transition to a climate-resilient and low-carbon economy, helping mobilize green capital.