FDI inflow estimated at $7.53b in Jan-May

Vietnam’s FDI inflow in May is estimated to surge by $1.1 billion month on month, marking a fairly high level compared with the average of many previous years and bringing total figure of first five months of 2010 to $4.5 billion, a year-on-year growth of 7.1 percent, Foreign Investment Agency (FIA) officially announced yesterday.

On an average, the actualised FDI amount of Vietnam reached $900 million a month in Jan-May.

This month, 97 projects were granted the investment certificates with total registered capital of over $1.5 billion. In the first five months, 360 foreign invested projects worth over $7.1 billion were registered successfully, up 40 percent in value against the same period of 2009.

Also, 15 projects sought approval to increase capital size with an extra of $78 million this month. The figures were 107 projects and $403 million in Jan-May.

Due to the slowdown in the increased capital amount of FDI projects, total registered amount in first five months is going down. Generally speaking total registered and increased FDI capital volume gained $7.53 billion, equalling to 77 percent of same period of 2009.

Therefore, the actualised FDI disbursement accounted for a high ratio in comparison with registered volume ($4.5 billion vs $7.5 billion).

In details, the processing and manufacturing sector received much attention of foreign investors with 127 projects being registered, $2.55 billion increased.

Notably, foreign investors pledged to invest $2.2 billion in the fields of production and distribution of electricity, gas and water, accounting for 28.6 percent of total registered FDI in Jan-May, followed by the real estate sector with $1.283 billion of newly licensed and increased capital (including $1.281 billion from 10 new projects).

Among newly licensed projects in the period, prominent ones include AES TKV Mong Duong Power Co Ltd ($2.1 billion) in Quang Ninh province, Kobelco Vietnam ($1 billion) in Nghe An, US’s Skybridge Dragon Sea Co Ltd ($902.5 million) in Ba Ria Vung Tau, Posco SS-Vina Co Ltd ($602 million) in Ba Ria Vung Tau.

Total 36 countries and territories invested in Vietnam in Jan-May, led by Netherlands with total registered capital of $2.2 billion (making up 29.4 percent of FDI attraction of Vietnam in the period). Korea placed Japan and US behind to take the second biggest investor of Vietnam with registered $1.1 billion (15.3 percent).

Ba Ria Vung Tau with a figure of $2.16 billion is the province attracting the most FDI capital in Jan-May, followed by Quang Ninh, Nghe An, HCM City with $2.14 billion, $567 million and $340 million correspondingly.

Production of foreign invested enterprises (FIEs) also showed very impressive surge, especially in the field of processing and manufacturing industry. Exports of FIEs including crude oil reached $13.8 billion, a year-on-year rise of 25.9 percent and accounting for over 50 percent of the country’s’ total $25.83 billion. If excluding crude oil, the export turnover of FIEs was recorded at $11.7 billion, soaring by 39.1 percent.

Import spending of FIEs was $13 billion during the first five months, jumping 50.5 percent from 2009 and making up 42 percent of Vietnam’s total figure of $31.2 billion. Thus, the trade deficit of FIEs in Jan-May was $800 million (including crude oil).

TBKTVN

Tags: invest in Vietnam, Vietnam FDI, Vietnam investment