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Thursday, October 29 2020
Tiếng Việt
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Date 29/07/2020-22:50:00 PM
Report on foreign direct investment in the first 7 months of 2020
As of July 20, 2020, the total value of newly registered capital, adjusted capital and capital contribution or share purchase by foreign investors reached 18.82 billion USD, equaling 93.1% as compared to the same period in 2019. Capital generated by FDI projects was estimated at 10.12 billion USD, equaling 95.9% over the same period in 2019.
Accumulated as of July 20, 2020, the whole country had 32,391 valid projects with total registered capital of 380.6 billion USD. The accumulated realized capital of foreign direct investment projects was estimated at 221.87 billion USD, equaling 58.3% of total valid registered investment capital.

Details are as follows:

I. FDI INFLOWS

1. FDI attractionin thefirst 7 monthsof 2020

1.1.FDI performance:

Realized capital:

As of July 20, 2020, foreign direct investment projects were estimated to disburse 10.12 billion USD, or 95.9% over the same period in 2019.

Import and export performance:

Export: Export turnover of the foreign investment sector continued to decrease in both value compared to the same period and the proportion in the country's export turnover.Export (including crude oil) reached over 95 billion USD, or 94.3% over the same period, accounting for 65.2% of export turnover.Export excluding crude oil was 94.1 billion USD, equivalent to 94.5% compared to the same period last year, accounting for 64.6% of the country's export turnover in the 7 months of 2020.

Import: Import of the FDI sector was nearly 77.5 billion USD, a fall of 6.1% over the same period and accounting for 55.6% of the country's import turnover.

Despite a decrease compared to the same period, in the first 7 months of 2020, the FDI sector still saw a trade surplus of approximately 17.6 billion USD including crude oil and a trade surplus of 16.7 billion USD excluding crude oil, offsetting the trade deficit of 11.1 billion USD of the domestic sector, helping the country to gain a trade surplus of roughly 6.5 billion USD.

As of July 20, 2020, the total value of newly registered capital, adjusted capital and capital contribution and share purchase by foreign investors reached 18.82 billion USD, a decrease of 6.9% compared to the same period last year. Although the newly registered capital and adjusted capital increased over the same period, the capital made by foreign investors in the form ofcapital contribution and share purchase continued to decline sharply, reducing the total investment capital attracted in the first 7 months of the year.

Of which:

Newly registered capital: There were 1,620 new projects grantedwith investment certificates(down 21.5% over the same period), the total registered capital reached 9.46 billion USD (up by 14.4%over the same period last year).The increase in investment capital is mainly thanks to the fact that in the first 7 months of the year, Bac Lieu LNG Power Plant project was granted a new investment certificate with total investment capital of 4 billion USD(accounting for 42.3% of total newly registered capital).Large projects have pushed the average project size to increase over the same period from 4.3 million USD in 2019 to 5.8 million USD in 2020.

Adjusted capital:There were 619 times of projects registered for adjustment of investment capital (a year-on-year decrease of 21.7%), total additional registered capital reached over 4.7 billion USD(up 37.7% over the same period)period).Adjusted capital in 7 months increased thanks to the capital expansion of Vietnam Southern Petrochemical Complex Project in Ba Ria - Vung Tau (Thailand) by 1,386 billion USD and that of the project of West Lake Urban Center (South Korea) by 774 million USD.

Capital contribution, share purchase:There were 4,459 times of capital contribution and share purchase by foreign investors (a slight increase of 1.6% over the same period last year). The total value of capital contribution was worth 4.64 billion USD(equal to 54.4% compared to same period last year).The proportion of capital contribution and share purchase in the total investment capital also decreased significantly compared to the same period in 2019(from around 42.1% in 7 months of 2019 to 23.7% in 7 months of 2020).

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

By sector:

Foreign investors have invested in18sectors, of which the processing and manufacturing led with total investment capital of over 8.96 billion USD, accounting for 47.6% of the total registered investment capital.Electricity production and distribution ranked second with investment capital of 3.95 billion USD, accounting for 21% of total registered investment capital.It is followed by the real estate business, wholesale and retail with the total registered capital of 2.8 billion USD and roughly 1.1 billion USD.The rest are other sectors.

By counterpart:

There are 104 countries and territories investing in Vietnam.Singapore led with total investment capital of 6.44 billion USD, accounting for 34.1% of total investment capital in Vietnam;South Korea ranked second with investment of 2.8 billion USD, accounting for 15% of total investment capital.China ranked third with registered investment capital of 1.7 billion USD, accounting for 9% of total investment capital.Next were Japan, Thailand,Taiwan, etc.

In terms of the number of new projects, Korea ranked first (421 projects);China ranked second (237 projects);Japan ranked third (175 projects);and Hong Kong ranked fourth (148 projects).

By location:

Foreign investors have invested in 59 provinces and cities nationwide.Bac Lieu continued to lead with a large project worth 4 billion USD, accounting for 21.3% of total registered investment capital.Hanoi ranked second with total registered capital of 2.82 billion USD, accounting for approximately 15% of total investment capital(of which investment was mainly in the form of expanding existing projects and capital contribution, share purchase, accounting for 42.6% and 42.1% of the city’s total registered investment capital, respectively).Ho Chi Minh City ranked third with around 2.4 billion USD, accounting for 12.6% of total investment capital(in which investment in the form of capital contribution, share purchase accounted for a large proportion or 76.2% of the city’s total investment capital).Next are Ba Ria - Vung Tau, Binh Duong, HaiPhong, and so on.

Regarding the number of new projects, Ho Chi Minh City led the list (598 projects);Hanoi ranked second (336 projects);Bac Ninh ranked third (102 projects).

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

Several major projects inJuly and the first 7 monthsof 2020:

In July 2020, particularly:

(1) West of West Lake Urban Center Project (Korea) with an increase of adjusted investment capital by 774 million USD.

(2) Expanding project of phase II INTC electromagnetic components manufacturing factory by INTC (Korea) Company Ltd. with total investment of 150 million USD located in Phu Tho.

(3) CROWN Vung Tau Beverage Packaging Company Limited (Singapore) project with total investment of 130 million USD.

(4) Hyosung Financial System Vina Company Ltd. (Korea) project with total investment of 110 million USD located in Bac Ninh.

In the first 7 months of 2020:

(1) 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 (granted with a certificate of competency on January 16, 2020).

(2) The South Vietnam Petrochemical Complex Project (Thailand) in Ba Ria - Vung Tau with an increase of adjusted investment capital by 1,386 billion USD (adjusted Investment Certificate dated April 18, 2020).

(3) Radian Jinyu Tire Manufacturing Plant Project (Vietnam) with total investment of 300 million USD aimed at producing full steel TBR tires invested by Chinese investors in Tay Ninh (granted with a certificate of investment on January 1, 2020).

(4) 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 (granted with a certificate of competency on April 1, 2020)

(5) Office Building project at 29 Lieu Giai (Singapore) with expanded investment capital by 246 million USD (adjusted Investment Certificate issued on March 31, 2020).

2. FDI attraction in July 2020

In July 2020, the whole country has attracted3.15 billion USDof newly registered capital, expanded investment and capital contribution and share purchase from foreign investors, anincrease of 79.8% over the same period last year, an increase of 76.2% compared to that of June 2020 and accounting for 16.7% of the total attracted investment in the first 7 months.

Of which:

- 202 projects were newly granted with certificates of investment, total registered capital reached 1.02 billion USD, up by 19.1% over the same period last year, an increase of 2.8% compared to June 2020 and accounting for 32.6% total investment in the month.Although the number of newly registered investment projects in July decreased compared to previous months, there were more large production projects with capital from 100 million USD to 150 million USD this month.

- 93 times of expanded projects made a rise of registered capital by nearly 992.2 million USD, more than 2 times higher than the same period last year, accounting for 31.5% of total investment capital in the month.July marked the rebound in adjusted investment capital after the lowest drop in June, almost 3.7 times higher than June 2020.

- 334 times ofcapital contribution and share purchase were made by foreign investors (down by 9% over the same period). The total value of the contributed capital is nearly 1.13 billion USD, the highest level in 7 months of 2020, an increase of 2.8 times over the same period last year, around 2.2 times higher than June 2020, accounting for 35.9% of the total investment in the month.

3. Evaluation of the FDI performance in July and the first 7 months of 2020

- Investment capital in July 2020 increased sharply compared to previous months (only lower than April 2020) and compared to the same period last year. The size of new and adjusted investment projects and the scale of the capital contribution and share purchase were all increased significantly, reaching 5.1 million USD per new project;10.7 million USD per time of capital adjustment and 3.4 million USD per time of capital contribution and share purchase.

- The Covid-19 pandemic had a negative impact on the world economy, in which production and business activities were stagnated, many enterprises fell into difficult situations.The realized capital of foreign investment projects continued to decrease in the first 7 months of the year, only equaling 95.9% over the same period last year, yet the rate of reduction is gradually improving compared to the previous months.

- The travel of investors as well as decisions of making new investment and expansion of existing foreign investment projects was still affected.The number of new projects and capital adjustments decreased over the same period, especially newly registered projects (down in July and 7 months).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.

- The impact of the Covid-19 epidemic continues to affect import and export turnover nationwide.Although the FDI sector still saw a trade surplus of 17.6 billion USD and contributed to the surplus of nearly 6.5 billion USD, the import-export turnover continued to decline compared to the same period last year.

- In the first 7 months and especially in July, thousands of experts from Korea, Hong Kong and Japan continue to be supported to enter Vietnam to maintain and expand production.

4. Accumulated foreign investment as ofJuly 20, 2020

Accumulated as of July 20,2020, thewhole country had 32,391 valid projects with total registered capital of 380.6 billion USD.The accumulated realized capital of FDI projects was estimated at 221.87 billion USD, equaling 58.3% of the total valid registered capital.

- By sector: foreign investors have invested in 19/21 sectors in the national economic classification system, of which the processing and manufacturing sector accounted for the highest proportion with 222.3 billion USD, accounting for 58.4% of total investment capital, followed by real estate business with 59.8 billion USD (accounting for 15.7% of total investment capital);electricity production and distribution with 27.5 billion USD (accounting for 7.2% of total investment capital).

- By counterpart: In July 2020, investors from Malta had new investment projects in Vietnam, bringing the total number of countries and territories with investment projects in Vietnam to 137 partners.South Korea ranked first with registered capital of over 70 billion USD (accounting for 18.4% of total investment capital).Japan ranked second with 60.2 billion USD (capturing 15.8% of the total investment capital), followed by Singapore, Taiwan, and Hong Kong.

- By location: FDI has been present in all 63 provinces and cities nationwide, of which Ho Chi Minh City is still the leading province in attracting foreign investment with 47.8 billion USD (accounting for 12.6% of the total investment);followed by Hanoi with approximately 39 billion USD (accounting for 10.2% of the total investment capital);Binh Duong with over 35 billion USD (accounting for 9.2% of the total investment capital).

(Detailed tables in Appendix III to the report)

II.FDI OUTFLOWS

In the first 7 months of 2020, Vietnam’s total newly registered investment and expanded investment outflows were 252.9 million USD, equaling 91.2% compared to the same period last year. Of which, 80 projects were newly registered with total investment of 206.3 million USD (up by 14.5% over the same period last year) and 17 times of investment adjustment with capital gain of 46.6 million USD (equal to 47.9% over the same period last year).

In July 2020 particularly, 10 projects were with newinvestment registration certificates and 3 times of projects were expanded with the total new and additional investment capital of 30.3 million USD, equaling 32.1% compared to the same period last year and 72.1% compared to June 2020 (thanks to the large project of Masan Tungsten Company Ltd. (Germany) being invested in May 2020 with a total investment outflow of 91.5 million USD).

Vietnamese investors have invested in 14 sectors abroad.In which, processing and led the list with 8 new projects and 4 times of capital adjustment obtaining registered capital of 178.7 million USD, accounting for 70.7% of the total investment capital.Accommodation and catering services ranked second, with 15.9 million USD, accounting for 6.3%;followed by information and communication, wholesale and retail.

There are 24 countries and territories receiving investment from Vietnam in the first 7 months of 2020. Leading is Germany with 4 new investment projects worth 92.6 million USD, accounting for 36.6 % of the total investment.Myanmar ranked second with 38.3 million USD, accounting for 15.1%.Next are the US, Singapore, and Laos.

(Tables of detailed figures in Appendix IV attached to the report).


Attach Files:
FDI_7.2020.xlsx

Ministry of Planning and Investment

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