FDI up 7.1 percent YoY in first five months

The country has actualised about $900 million of foreign direct investment (FDI) capital a month during the first five months of 2010, lifting the total actualised FDI amount of Jan-May to $4.5 billion, up 7.1 percent year-on-year, head of Foreign Investment Agency (FIA) Do Nhat Hoang reported.

Notably, the foreign invested projects in fields of processing industry and manufacturing attracted the most FDI with 127 projects and total newly licensed and increase capital volume of $2.55 billion in the period, accounting for 34 percent of total FDI attraction. In which, there are big projects such as AES-Vinacomin Mong Duong power plant that capitalised at $2.1 billion in Quang Ninh province, two steel plants including one worth $1 billion in Nghe An and another $620 million plant in Ba Ria Vung Tau province. The power and gas production and distribution field ranked the second in term of FDI attraction with total $2.2 billion, followed by the real estate market with nearly $1.3 billion.

On Jun 11, leaders of top companies under US Business Council visited HCM City to look for investment opportunities, which are the giants in such sectors as infrastructure, health, information technology, education and energy. Vice chair of Oracle firm, Joseph Alhadeff spoke that his group will focus on investing in upgrading wideband, improving the IT application capacity and supporting educational projects in Vietnam.

Statistics of Ministry of Planning and Investment showed that in Jan-May, the exports of foreign invested enterprises (FIEs) contributed 51 percent in total export earnings of Vietnam while domestic firms made 49 percent against 2009′s ratio 47:53, proving the drastic export growth of FIEs.

Do Nhat Hoang said that exports of FIEs in first five months brought in $13.8 billion (including crude oil), a year-on-year rise of 25.9 percent. Excluding crude oil, FIEs’ export turnover reached $11.7 billion, jumping 39 percent.

Some FIEs also plan to boost exports within 2010. As planned, Intel Vietnam is finalising the phase of installing equipment to turn out the first chipset products in this July. Between Q3 and Q4, the US group will produce six million of products in Vietnam.
In addition, Intel Vietnam built a clean workshop with setup of equipments and machines to raise capacity as necessary (when the world’s chipset demand increases).

Similarly, Samsung Vina hiked the production capacity to approximately four million products a month in June to reach the targeted export of 42 million products in 2010 for $1.5 billion with an aim to become top foreign invested exporter in Vietnam.

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Tags: invest in Vietnam, Vietnam FDI, Vietnam investment