Vietnam Sees Increase in FDI

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Aug. 2 – Within the first seven months of 2013, Vietnam has managed to attract over US$12 billion in foreign direct investment (FDI) – a 19.6 percent year on year increase. Furthermore, nearly US$7 billion of the FDI came in as newly registered funds, up 10 percent year on year.

Of Vietnam’s total FDI inflows, an astounding 88 percent was directed towards the processing and industrial zone; the property sector came in at a distant second, taking in less than five percent.

Notably, Japan continued to be the largest investor in Vietnam, accounting for 34.4 percent of total FDI. Singapore followed closely, accounting for 31.2 percent of total FDI.

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During this same period, disbursed FDI to the Dong Nai region rose from US$370 million to US$500 million – a 35 percent increase. Most of the funds came from enterprises in Japan, Singapore and Korea with a focus on electronic components, mechanics and hi-tech industries.

Japanese investors have continued to increase their investments into Dong Nai due to there being good business prospects in the region and since the regional government also provides Japan certain investment promotions. As a result, there are a total of 20 Japanese companies in Dong Nai that have pledged over 50 percent of new FDI to the region.

Dong Nai hopes to attract between US$800 million–US$1 billion in total FDI this year.

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