Vietnam attracts 5.8 billion USD in FDI in first quarter
The flow of foreign direct investment (FDI) into Vietnam in the first quarter of 2018 witnessed a significant yearly decline of 25 percent to 5.8 billion USD, but disbursement rose by 7.2 percent year-on-year to 3.88 billion USD.
The flow of foreign direct investment (FDI) into Vietnam in the first quarter of 2018 experiences a significant yearly decline of 25 percent. (Photo: VNA)
Hanoi (VNA) – The flow of foreign direct investment(FDI) into Vietnam in the first quarter of 2018 witnessed a significant yearlydecline of 25 percent to 5.8 billion USD, but disbursement rose by 7.2 percentyear-on-year to 3.88 billion USD.
The Foreign Investment Agency (FIA) under the Ministry of Planningand Investment (MoPI) reported that processing and manufacturing remained themost attractive sector to foreign investors, receiving commitments of 3.44billion and accounting for 59.4 percent of the total commitments.
The retail and wholesale sectors received the second largest chunkof FDI with 531 million USD or 9.2 percent, followed by the real estate sectorwith 486 million USD or 8.4 percent.
The Republic of Korea (RoK) has remained the biggest foreigninvestor among 76 countries and territories investing in Vietnam in the firstquarter of 2018, with a total registered capital of 1.84 billion USD,accounting for 31.6 percent of the total capital.
Of the RoK investment, 501 million USD was invested by LG InnotekCo in a project in the northern port city of Hai Phong.
Businesses from Hong Kong registered to pour 689 million intoVietnam, making up 11.9 percent of the country’s total FDI, while those fromSingapore injected 649 million USD, equivalent to 11.2 percent of the totalFDI.
The southern largest economic hub of Ho Chi Minh City continued tobe the largest recipient of FDI during the period with 1.7 billion USD, whilethe northern port city of Hai Phong received 925 million USD to take the secondplace.
The third largest recipient of FDI was the southern province ofBinh Duong with investment worth 565 million USD.
To fully capitalise on the FDI capital source in the new stage,the MoPI is drafting a FDI strategy for 2018-2023.With assistance from the World Bank, the FDI strategy underlines that Vietnamat this stage should focus on sectors having advantages and those that foreignfirms could bring more benefits to rather than domestic firms.
The draft strategy stipulates Vietnam to set out priority sectorsfor attracting FDI, such as those that need increased value andcompetitiveness, including manufacturing, services, agriculture and travel.-VNA
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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.
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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.
The flow of foreign direct investment (FDI) into Vietnam in the first quarter of 2018 experiences a significant yearly decline of 25 percent. (Photo: VNA) 
