FDI on the Rise in Vietnam
Apr. 26 – During the first four months of 2013, Vietnam attracted newly registered and additional foreign direct investment (FDI) capital worth over US$8 billion. The capital was injected into projects throughout 18 different sectors, with the processing and manufacturing industries topping the list, followed by the property, wholesale and retail sectors.
Of this, US$4.9 billion of new capital was added thanks to the licensing of 341 new FDI projects. Another 121 projects expanded its capital by a total of US$3.34 billion. These capital injections represent a 14.6 percent and 20.7 percent year-on-year increase, respectively.
Newly approved FDI projects in Vietnam include the establishment of a plant worth US$2 billion by Samsung Electronics Vietnam which will produce and assemble hi-tech electronic products. Additionally, Japan’s Nghi Son Oil Refinery Ltd. Co. expanded its FDI capital by US$2.8 billion.
Furthermore, an estimated US$3.75 billion from the FDI projects were disbursed during the four-month period, a 3.9 percent year-on-year increase.
According to the Vietnamese Ministry of Planning and Investment (MPI), Japan ranked first among the 37 foreign investors that committed capital to projects in the first four months of 2013, with newly-registered and additional capital worth a total of US$3.6 billion. Japan is followed by Singapore with US$2.3 billion and Russia with US$1.1 billion.
During this same period, Ho Chi Minh City (HCMC) recorded a 15.6 percent export growth, reaching a total of US$9.2 billion. HCMC’s export growth registered higher than its import growth despite imports rising to US$8.04 billion, which is a 19.5 percent year-on-year increase. Imports mainly comprised of raw materials, equipment and facilities.
In addition, a total of 97,700 jobs were created in HCMC during this four-month span.
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.
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