Disbursement of foreign direct investment (FDI) capital in 2016 was estimated at 15.8 billion USD as of December 26, a record high and up 9 percent on a yearly basis.
Medicines are produced at German-invested B. Braun Vietnam in Hanoi's Thanh Oai Industrial Complex Read (Source: VNA)
Hanoi (VNA) – Disbursement of foreign directinvestment (FDI) capital in 2016 was estimated at 15.8 billion USD as ofDecember 26, a record high and up 9 percent on a yearly basis, according to theForeign Investment Agency under the Ministry of Planning and Investment. The number of projects granted licences in the year toDecember 26 was 2,556 with 15.1 billion USD in total register capital, up 27percent year on year in project number but equal to just 97.5 percent ofcapital. In the same period, 1,225 projects asked to add 5.76 billionUSD to their capital. Meanwhile, foreign investors purchased stakes worth morethan 3.4 billion USD in 2,547 firms and economic organisations. All in all, FDI capital inflow in 2016 totalled 24.4 billionUSD. The FDI sector posted an estimated export value (includingcrude oil) of 125.9 billion USD for the year, up 10.2 percent from 2015 andaccounting for 71.55 percent of the country’s total export revenue. Non-oilexport value was estimated at 123.55 billion USD, an increase of 11.8 percentover 2015 and making up 70.2 percent of the nation’s total export revenue.
The Foreign Investment Agency said the drop in new registeredcapital and additional capital was attributable to a lack of large-scaleprojects.
ꦇ Two major projects, the 2.5 billion USD Nghi Son 2 powerplant and the 2.5 billion USD Vung Ang 2 power plant, were initially hoped toreceive licences this year, but they have now been delayed to 2017.
While FDI was poured into 19 sectors, the manufacturing andprocessing sector absorbed the biggest share of FDI capital with 63.7 percentor 15.53 billion USD, followed by the automobile and motorbike wholesale,retail and repair with 7.79 percent (nearly 1.9 billion USD), and real estatewith 6.9 percent (1.68 billion USD). Among 95 countries and territories investing in Vietnam in2016, the Republic of Korea led in the term of capital with 7 billion USD (28.8percent of the total). Japan came second with 2.58 billion USD (10.62 percent),and Singapore was third with 2.41 billion USD (9.9 percent). Ho Chi Minh City led cities and provinces nationwide inattracting FDI, absorbing 3.42 billion USD (14 percent of the total). Thenorthern port city of Hai Phong came next with 2.98 billion USD (12.26percent). Hanoi, Binh Duong and Dong Nai followed with 2.79 billion USD, 2.36billion USD and 2.23 billion USD, respectively. Most remarkable among new FDI projects licensed in 2016include the LG Display Hai Phong worth 1.5 billion USD invested by the RoK’s LGDisplay Co Ltd, the 550 million USD LG Innotek Hai Phong, invested by LGInnotek also of the RoK, and the Dam Nha Mac sea port-industrial park complexin Quang Ninh worth 315.46 billion USD invested by CDC of the Cayman Islands.-VNA
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