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Report on foreign direct investment in the first 11 months of 2020

Date 27/11/2020 - 14:43:00 | 308 views
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As of November 20th, 2020, the total newly registered capital, adjusted capital and capital contribution or share purchase by foreign investors reached 26.43 billion USD, equaling  83.1% compared to the same period last year. Capital generated by FDI projects was estimated at 17.2 billion USD, or 97.6% over the same period last year.

Accumulated as of November 20th, 2020, the whole country had 32,915 valid projects with total registered capital of 382.9 billion USD. The accumulated realized capital of foreign direct investment projects was estimated at 229.1 billion USD, equaling 59.8% total valid registered investment capital.

Details are as follows:

I. FDI INFLOWS

1. FDI attraction in the first 11 months of 2020

1.1. FDI performance:

Realized capital:

As of November 20th, 2020, foreign direct investment projects were estimated to disburse 17.2 billion, or 97.6% compared with the same period last year.

Import and export performance:

Export:  Export turnover of the foreign investment sector turned to increase after continuous decrease in ten months. Export (including crude oil) reached nearly 181 billion USD, a 6.6% rise over the same period last year, accounting for 71.3% of export turnover. Export excluding crude oil was 179.5 billion USD, a rise of 6.9% over the same period last year, accounting for 70.7% of the country's export turnover in the eleven months of 2020.

Imports: Imports of foreign investment sector attained 148.9 billion USD, up by 9.1% over the same period last year and accounting for 63.5% of the country's import turnover.

In the first 11 months of 2020, the FDI sector still saw a trade surplus of 32.1 billion USD including crude oil and a trade surplus of 30.6 billion USD excluding crude oil, offsetting the trade deficit of 12.7 billion USD of the domestic sector, helping the country to gain a trade surplus of 19.4 billion USD.

1.2. Investment registration

As of November 20th, 2020, total newly registered capital, adjusted capital and capital contribution or share purchase by foreign investors reached 26.43 billion USD, or 83.1% compared to the same period last year. 

Of which:

Newly registered capital: There were 2,313 new projects granted with investment certificates (a year-on-year decrease of 33.5%). Total registered capital reached 13.6 billion USD (a year-on-year decrease of 7.6%)

Adjusted capitalThere were 1,051 times of projects registered for adjustment of investment capital (a year-on-year decrease of 16.3%). Total additional registered capital reached over 6.3 billion USD (up by 7.8% compared with the same period last year). 

Capital contribution and share purchase: There were 5,812 times of capital contribution and share purchase by foreign investors (a year-on-year fall of 32.1%). The total value of capital contribution was worth 6.5 billion USD (a decline of 41.8% compared to same period last year). The proportion of capital contribution and share purchase in the total investment capital also decreased compared to the same period last year (from 35.4% in the 11 months of 2019 to 24.7% in the 11 months of 2020).

(See detailed data table in Appendix I attached to the Report)

By sector:

Foreign investors have invested in 19 sectors, of which the processing and manufacturing led with total investment capital of almost 12.7 billion USD, accounting for 48.2% of the total registered investment capital. Electricity production and distribution ranked second with investment capital of over 4.9 billion USD, accounting for 18.7% of total registered investment capital. It is followed by the real estate business, wholesale and retail with the total registered capital of nearly 3.8 billion USD and 1.5 billion USD. The rest are other sectors.

By counterpart:

There are 109 countries and territories investing in Vietnam in 11 months. Singapore led the list with total investment capital of almost 8.1 billion USD, accounting for 30.6% of total investment capital in Vietnam; South Korea ranked second with investment of 3.7 billion USD, accounting for 14% of total investment capital. China ranked third with registered investment capital of 2.4 billion USD, accounting for 9.1% of total investment capital. Next were Japan, Taiwan, Thailand, etc.

In terms of the number of new projects, Korea ranked first (573 projects); China ranked second (311 projects); Japan ranked third (251 projects); followed by Hong Kong (164 projects).

By location:

The foreign investors have invested in 60 provinces and cities nationwide in 11 months. Bac Lieu continued to lead the list with a large project worth 4 billion USD, accounting for 15.1% of total registered investment capital. Ho Chi Minh City ranked second with total registered capital of over 3.8 billion USD, accounting for 14.4% of total investment capital (of which investment was mainly in the form of capital contribution and share purchase, accounting for 74.4% of the City’s total registered investment capital). Hanoi ranked third with 3.2 billion USD, accounting for 12.2% of total investment capital (of which investment in the form of project expansion and capital contribution and share purchase accounted for 39.2% and 40.1% of the city’s total investment capital, respectively). Next are Ba Ria - Vung Tau, Binh Duong, Hai Phong, and so on.

Regarding the number of new projects, Ho Chi Minh City led the list (865 projects); Hanoi ranked second (470 projects); Bac Ninh ranked third (136 projects).

(See detailed data table in Appendix II attached to the Report)

Several major projects in September and the first 11 months of 2020:

(1) Liquefied Natural Gas (LNG) Plant Project under the operation of Bac Lieu LNG Thermal Power Centre (invested by Singaporean investors) 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 16th, 2020).

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

(3) Project of West of West Lake Urban Residence Centre (invested by South Korean investors) with expanded investment capital by 774 million USD (adjusted Investment Certificate issued on June 29th, 2020).

(4) Pegatron Vietnam (invested by Taiwanese investors) project having capital of 481 million USD with the goal of manufacturing gaming device, phone accessories, smart speakers, game controllers, and computers of all kinds in Hai Phong (granted with a certificate of investment on October 30th, 2020).

(5) 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 21st, 2020).

2. Evaluation of the FDI performance in October and the first 11 months of 2020

- Production and business activities were affected by the Covid-19 pandemic. Realized investment capital of FDI projects in 11 months continued to decrease compared to the same period, but the stagnation was lower. Many foreign-invested enterprises are gradually recovering, maintaining good business and production activities, creating momentum for faster growth in the last months of 2020.

- There are still a lot of foreign investors interested, trusting and have the need to invest in Vietnam. But due to the effects of the Covid-19, investors’ travel as well as new investment decisions and the expansion of the scale of FDI projects continue to be affected. The number of new projects, capital adjustment and capital contribution and share purchase by foreign investors decreased compared to the same period last year. However, the percentage of decrease is lower with adjusted investment capital up by 7.8% against the same period last year. In the context of a very strong decline in global investment due to the effects of the Covid-19, this result is better than many other countries, showing the attractiveness of Vietnam in the eyes of international investors.

- Although the impact of the epidemic is extremely heavy on the economies of many countries, the balance of trade in goods in the first 11 months of 2020 in Vietnam continued to have a trade surplus of 19.4 billion USD, of which foreign invested sector (including crude oil) saw a trade surplus of 32.1 billion USD; trade deficit of the domestic economic sector was 12.7 billion USD.

3. Accumulated foreign investment as of November 20th, 2020

Accumulated as of November 20th, 2020, the whole country had 32,915 valid projects with total registered capital of nearly 382.9 billion USD. The accumulated realized capital of FDI projects was estimated at 229.1 billion USD, equaling 59.8% 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 225.7 billion USD, accounting for nearly 59% of total investment capital, followed by real estate business with 60.1 billion USD (accounting for 15.7% of total investment capital); electricity production and distribution with 28.7 billion (accounting for 7.5% of total investment).

- By counterpart: In November, 2020, new projects granted to Kenyan investors helped to increase the number of countries and territories having valid investment projects in Vietnam to 139. Of which, South Korea ranked first with registered capital of nearly 70.5 billion USD (accounting for 18.4% of total investment). Japan ranked second with nearly 60.1 billion USD (capturing 15.7% of 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 more than 48 billion (accounting for 12.5% total investment); followed by Hanoi with 35.9 billion USD (accounting for 9.4% of total investment capital); Binh Duong with roughly 35.4 billion USD (accounting for 9.2% of total investment capital).

(See detailed data table in Appendix III attached to the Report)

II. FDI OUTFLOWS

In the first 11 months of 2020, Vietnam’s total newly registered investment and expanded investment outflows were 490.4 million USD, up by 6.9% over the same period last year. Of which, 114 projects were newly registered with total investment of 316.4 million USD (a year-on-year increase of 10.6%) and 30 times of investment adjustment with capital gain of 174 million USD (a rise of 65.7% compared to the same period last year).

In November, 2020 only, 07 projects ranted with new investment registration certificates and 02 times of capital adjustment brought about the total investment outflow of 12.1 million USD (a year-on-year plunge of 74.2%).

Vietnamese investors have invested in 13 sectors abroad. Of which, processing and manufacturing led the list with 11 new projects and 07 times of capital adjustment obtaining registered capital of 228.2 million USD, accounting for 46.5% of total investment capital. Finance, banking and insurance ranked second with 68.2 million USD, accounting for 13.9%; followed by professional, scientific and technical activities and wholesale and retail trade.

There are 28 countries and territories receiving investment from Vietnam in the first 11 months of 2020. Leading is Australia with 13 new investment projects and 02 expanded projects worth 101.8 million USD, accounting for 20.8% of the total investment. Germany ranked second with 92.6 million USD, accounting for 18.9%. Followed by Laos, United States, etc.

(See detailed data table in Appendices IV and V attached to the Report)


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