FDI shrinks 50% in two months
Total foreign direct investment (FDI) capital in the first two months of the year decreased to US$1.23 billion, down significantly from the same period last year, according to preliminary statistics from the General Statistics Office.
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| Steel plates are made at Thai-invested Siam Steel Viet Nam Co. |
During the period, Viet Nam licensed 65 new foreign-invested projects with a total registered capital of nearly $911 million, down 55 per cent over the first two months last year. The country also approved another 25 existing projects to add nearly $320 million to its registered capital.
The office said that total FDI capital disbursement in the first two months reduced by 9 per cent to $1 billion.
Manufacturing and processing were the most attractive sectors to foreign investors, with 26 projects bringing in $990 million or 80.8 per cent of the country's total FDI capital in January-February, the office reported.
The logistics and retail sectors followed in second place with capital volumes of $180 million and $27.1 million, respectively.
Japan topped the list of 23 countries and territories with projects in Viet Nam for the first two months, with more than $1 billion in registered and additional capital invested. Taiwan and Singapore ranked second and third, the office said.
The northern port city of Hai Phong was the most attractive destination to foreign investors as it absorbed nearly $606 million, followed by the provinces of Khanh Hoa and Binh Duong.
The country this year targeted to attract $15-16 billion of FDI registered capital and expected that roughly $10-11 billion would be disbursed.
Do Nhat Hoang, director of the Ministry of Planning and Investment's Foreign Investment Agency, said the country would value quality over quantity, considering the effectiveness of potential projects rather than amount of registered capital.
However, experts said, the Government should revise many of the current incentive policies in an effort to meet the target figure.
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