Foreign investors drawn to Vietnam’s manufacturing-processing
The manufacturing-processing sector continued to attract the major share of foreign direct investment (FDI) in Vietnam in the first half of 2018, with 7.91 billion USD, accounting for 38.9 percent of the total registered capital.
Foreign investors drawn to Vietnam’s manufacturing-processing. (Photo: VNA)
Hanoi (VNA) –♊ The manufacturing-processing sector continued to attract the major share of foreign direct investment (FDI) in Vietnam in the first half of 2018, with 7.91 billion USD, accounting for 38.9 percent of the total registered capital.
It was followed by real estate, with 5.54 billion USD, and the wholesale and retail sector with 1.5 billion USD, making up 27.3 percent and 7.4 percent of the total, respectively.
According to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, in the period, FDI poured into Vietnam exceeded 20 billion USD, while 8.37 billion USD was disbursed, up 5.7 percent and 8.4 percent from the same period last year respectively.
Foreign investors invested in 1,362 new projects, added capital to 507 existing ones and contributed capital and bought shares in domestic companies 2,749 times.
Japan ranked first among 87 nations and territories investing in Vietnam in the first half, with 6.47 billion USD, followed by the Republic of Korea (5.06 billion USD), and Singapore (2.39 billion USD).
During January-June, foreign investors poured their capital into 55 provinces and cities, in which Hanoi ranked first with 5.87 billion USD. The capital city was followed by Ho Chi Minh City (3.68 billion USD), and Ba Ria-Vung Tau province (1.93 billion USD).
According to Deputy Minister of Planning and Investment Nguyen The Phuong, after 30 years of Vietnam opening its door to foreign investors, the FDI sector has become an important part of the economy.
To date, the country has attracted nearly 26,000 projects with a registered capital of 326 billion USD. Disbursement is estimated at 180 billion USD.
Foreign investment accounts for 25 percent of the country’s total investments and contributes 20 percent of GDP. Last year, the sector contributed nearly 8 billion USD to the State budget, 14.4 percent of total revenue.
At present, 58 percent of foreign investments focus on processing and manufacturing, generating half of industrial production value.-VNA
The manufacturing-processing industry absorbs more than half (57.9 percent) of the foreign direct investment (FDI) inflow into Vietnam over the past years to May 2018.
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Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
Foreign investors drawn to Vietnam’s manufacturing-processing. (Photo: VNA)
