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Saturday, July 11 2020
Tiếng Việt
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Date 29/04/2020-10:33:00 AM
Report of foreign direct investment in the first 4 months of 2020
As of April 20, 2020, the total value of newly registered capital, adjusted capital and capital contribution or share purchase of foreign investors reached US $ 12.33 billion, equivalent to 84.5% of the same period of 2019. Capital generated by FDI projects was estimated at 5.15 billion USD, equalling 90.4% as compared to the same period in 2019.
Accumulated to April 20, 2020, the whole country had 31,862 valid projects with a total registered capital of 373.1 billion USD. The accumulated realized capital of FDI projects was estimated at 216.93 billion USD, equalling 58.2% of the total valid registered investment capital.

I. FDI INFLOWS

1. FDI attractionin thefirst 4 monthsof 2020

1.1.FDI performance

Realized capital

As of April 20, 2020, foreign direct investment projects were estimated to disburse 5.15 billion USD, or 90.4% as compared to the same period in 2019.

Import and export performance

Export: Export turnover of the foreign invested sector increased again after a slight decrease in the first 3 months.Export including crude oil reached 56.49 billion USD, a rise of 1.5% over the same period, accounting for 70.2% of export turnover.Export excluding crude oil was 55.75 billion USD, up by 1.5% as compared to the same period in 2019, accounting for 69.3% of the national export turnover in the first 4 months of 2020.

Import: Import of FDI sector was 46.32 billion USD, an increase of 2.9% over the same period and accounting for 57.6% of the national import turnover.

Despite being affected by the Covid-19 epidemic, in the first 4 months of 2020, the FDI sector still saw a trade surplus of 10.2 billion USD including crude oil and 9.4 billion USD excluding crude oil, offsetting trade deficit of 9.6 billion USD in the domestic sector, bringing about a trade surplus of 983 million USD.

1.2.Investment registration:

As of April 20, 2020, the total value of newly registered capital, adjusted capital and capital contribution and share purchase by foreign investors arrived at 12.33 billion USD, a fall of 15.5% in comparison with the same period in 2019. Despite the newly registered and adjusted investment capital increased over the same period, the capital made by foreign investors in the form ofcapital contribution and share purchase decreased sharply, leading to shrinkage of the total investment capital attracted in the first 4 months.

However, in terms of value, the registered capital in the first 4 months of 2020 still made a rise compared to the same period in 2016-2018(a surge of 52.3% compared to 2018, 16.4% compared to 2017 and 79% compared to 2016).The decrease in 4 months is also less than in the first 3 months.

Foreign investment in the first 4 months of the year

Newly registered capital: There were 984 new projects granted with investment certificates. The total newly registered capital reached 6.78 billion USD, a fall of 9.1% in the number of projects and a upsurge of 26.9% in the registered capital over the same period last year. The increase in investment in the first 4 months of the year is thanks to the issuance of a new investment certificate to the LNG power plant in Bac Lieu which is worth 4 billion USD, accounting for 59% of the total newly registered capital. Large projects have widened up the average project size over the same period, from 4.9 million USD in 2019 to 6.9 million USD in 2020.

Adjusted capital: 335 turns of projects were registered to adjust investment capital with the total additional registered capital of more than 3.07 billion USD, up by 45.6% over the same period in 2019. The adjusted capital increased sharply after continuous decline in the first 3 months of the year thanks to the South Vietnam Petrochemical Complex Project in Ba Ria - Vung Tau (Thailand) with an increase of investment capital by US 1.386 billion USD.However, the turns of projects with capital adjustment in 4 months still fell by 5.2% over the same period last year.

Capital contribution and share purchase:There are 3,210 times of capital contribution and share purchase by foreign investors with a total value of capital contribution reaching nearly 2.48 billion USD, a rise of 32.9% in the number of capital contribution and share purchase and an equivalent to 34.7% of the value of capital contribution compared to the same period last year. Although the number of capital contributions and share purchases has increased, the scale of capital contribution remains small, much smaller than the average size in the first 4 months last year (only 0.77 million USD/capital contribution on average). The value of capital contribution and share purchase in the total registered investment capital also decreased significantly compared to the same period in 2019(from 48.9% in the 4 months of 2019 to 20.1% in the 4 months of 2020).

(Detailed tables in Appendix I attached to the report).

By sector

Foreign investors invested in 18 sectors, of which the processing and manufacturing led with total investment of nearly 6 billion USD, accounting for 48.4% of the total registered investment capital. Electricity production and distribution ranked second with investment capital of 3.9 billion USD, accounting for 31.9% of total registered investment capital.This is followed by retail and real estate business with the total registered capital of 776 million USD and 665 million USD.The rest are other sectors.

By counterpart

There are 93 countries and territories investing in Vietnam.Singapore led with total investment of 5.07 billion USD, accounting for 41.1% of total investment capital into Vietnam;Thailand ranked second with 1.46 billion USD, accounting for 11.8% of total investment capital.Japan ranked third with 1.16 billion USD, accounting for 9.4% of total investment capital.Next are China, Taiwan, Korea, etc.

In terms of the number of projects, South Korea ranked first (265 projects);China ranked second (135 projects);Japan ranked third (116 projects);and Singapore ranked fourth (81 projects).

By location

Foreign investors invested in 57 provinces and cities across the country.Bac Lieu continued to lead with a large project worth 4 billion USD, accounting for 32.4% of the total registered investment capital.Ba Ria - Vung Tau ranked second with 1.9 billion USD, accounting for 15.4% of total investment capital.Hochiminh City ranked third with 1.31 billion USD, accounting for 10.6% of total investment capital(of which investment by capital contribution and share purchase occupied a large proportion or 76.5 of the City’s total investment capital, 53.1% of the number of capital contribution and share purchase and 40.4% of the nationwide value of capital contribution).Next are Hanoi, Ha Nam, and Binh Duong.

In terms of the number of projects, Hochiminh City led the list (369 projects);Hanoi ranked second (223 projects);and Bac Ninh ranked third (65 projects).

(Detailed tables in Appendix II attached to the report).

Several major projects in thefirst 4 monthsof 2020

- Liquefied Natural Gas (LNG) Plant Project under the operation of Bac Lieu LNG Thermal Power Centre (Singapore) having total registered investment capital of 4 billion USD with the goal of producing electricity from liquefied natural gas.

- The South Vietnam Petrochemical Complex Project (Thailand) in Ba Ria - Vung Tau with an increase of adjusted investment capital by 1,386 billion USD.

- Radian Jinyu Tire Manufacturing Plant Project (Vietnam) with a total investment of 300 million USD aimed at producing full steel TBR tires invested by Chinese investors in Tay Ninh.

- Victory Project - A factory manufacturing high-tech electronic products in Dong Van, Ha Nam (Taiwan), worth 273 million USD with the goal of manufacturing and assembling electronic computer and computer auxiliary equipment,production of civil electronic audio and visual equipment.

- The Office Building project at 29 Lieu Giai (Singapore) with an increase of adjusted investment capital by 246 million USD.

2. FDI attraction performance in April 2020

In April 2020 only, the whole country attracted 3.78 billion USD of newly registered capital, expanded investment and capital contribution and share purchase from foreign investors, approximately equal to the investment capital attracted in the same period last year (99.9% of investment capital attracted in April 2019), accounting for 30.7% of total investment capital in the first 4 months, a surge of 81.4% compared to March’s value, 3.3 times higher than the value in February and equivalent to nearly 80% of the value attained on January 1, 2020.

- 229 projects were newly granted with certificates of investment; total registered capital reached 1.25 billion USD, an equivalent of nearly 82% compared to the same period in 2019 and 33% of total investment capital in the month.

- 99 times of expanded projects made a rise of registered capital by more than 2 billion USD, 2.5 times compared to the same period last year and accounting for 60.9% of the total investment capital in the month.Capital adjustment increased sharply thanks to a large capital adjustment of 1.386 billion USD in April 2020, accounting for 69% of the total adjusted capital.

- There are 940 times of capital contribution and share purchase by foreign investors, of which the total value of capital contribution reached nearly 523 million USD, equalling 36.1% compared to the same period last year and accounting for 26% of the total investment capital in the month.Although foreign investment capital in the form of capital contribution and share purchase accounted for a large proportion in the structure of attracted capital (54.2%) in March 2020, investment capital in this form decreased in both value and capital ratio in Aprilpartly due to a decrease in the number of capital contribution and share purchase (a fall of 27%), and as a result of some new investment projects and large capital adjustments this month.

3. Evaluation of the FDI performance in the first 4 months of 2020

- The Covid-19 pandemic had a negative impact on the world economy, in which production and business activities were delayed, global supply chains were disrupted, many businesses fell into difficult situation.Generated capital of FDI projects continued to decrease in the first four months of the year, equivalent to only 90.4% over the same period last year.

- The travel of investors as well as decisions of making new investment and expansion of existing foreign investment projects are also affected.The number of new projects and capital adjustments has decreased over the same period.Although new investment and capital adjustment increased, most of the rise was thanks to large projects, which had been submitted and negotiated for a long time before.If excluding large projects of over1billion USD, the total newly, adjusted and contributed capital made by foreign investors in the first 4 months of 2020 will be equal to 64.7% of the same period last year.

- Investment promotion activities made a big change in the first 4 months of 2020, which recorded a sharp decline in the number of delegations visiting to explore investment opportunities, especially from key partners like Japan, Korea, Singapore, ASEAN, USA, and EU.Activities of seminars, conferences and forums on investment have mostly been postponed.

- Export turnovers of the foreign investment sector in the first 4 months of 2020 increased slightly again after decreasing in 3 months.Foreign investment sector saw a trade surplus of 10.2 billion USD including crude oil and 9.4 billion USD excluding crude oil, offsetting the trade deficit of 9.6 billion USD in the domestic sector, bringing about a trade surplus of 983 million USD.

4. Accumulated foreign direct investment as of April 20, 2020

- By sector: Foreign investors have invested in 19/21 sectors in the national economic classification system, of which the processing and manufacturing sector accounts for the highest proportion of 219.7 billion USD, or 58.9% of total investment capital, followed by real estate business worth 59 billion USD or 15.8% of total investment capital;electricity production and distribution with 27.5 billion USD (capturing 7.4% of total investment capital).

- By counterpart: There are now 136 countries and territories having investment projects in Vietnam, in which,South Korea ranked first with total registered capital of 68.8 billion USD or 18.4% of total investment capital.Japan ranked second with 59.6 billion USD (almost 16% of total investment capital), followed by Singapore, Taiwan and Hong Kong.

- By location: Foreign investment has been present in all 63 provinces and cities nationwide, of which Hochiminh City is still the leading province in attracting foreign investment with 47.6 billion USD (accounting for 12.8% of total investment);followed by Hanoi with 34.9 billion USD (9.4% of total investment capital);Binh Duong with 34.7 billion USD (9.3% of total investment capital).

(Detailed tables in Appendix III attached to the report)

II.FDI OUTFLOWS

In the first 4 months of 2020, Vietnam’s total newly registered investment and expanded investment outflows were 68.9 million USD, equivalent to 46.1% of the same period in 2019. Of which 45 projects were newly registered with total investment of 53.1 million USD (equal to 55.3% compared to the same period last year) and 09 times of investment adjustment with capital gain of 15.8 million USD (or 29.5% compared to the same period last year).

Vietnamese investors have invested in 10 sectors abroad.In which wholesale and retail led the list with 15 projects, total registered capital of 29.1 million USD, accounting for 42.2%.Accommodation and catering services ranked second, with a total investment of 15.2 million USD, accounting for 22.1%;followed by the sectors of professional activities, science and technology, manufacturing and processing industry.

There are 18 countries and territories receiving investment from Vietnam in the first 4 months of 2020. Leading was Myanmar with 6 new investment projects and 1 extended project, total newly and additionally registered investment reaching USD 21.2 million, accounting for 30.8% of the total investment.The United States ranked second with 20.5 million USD, accounting for nearly 30%.Next were Singapore, Cambodia, and Cuba.(Detailed tables in Appendix IV attached to the report).


Attach Files:
FDI_4.2020_(ENG).xlsx

Ministry of Planning and Investment

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