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Report on foreign direct investment in the first 9 months of 2020

Date 26/09/2020 - 14:37:00 | 417 views
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As of September 20th, 2020, the total newly registered capital, adjusted capital and capital contribution or share purchase by foreign investors reached 21.20 billion USD, equaling  81.1% compared to the same period last year. Capital generated by FDI projects was estimated at 13.76 billion USD, or 96.8% over the same period last year.

Accumulated as of September 20th, 2020, the whole country had 32,658 valid projects with total registered capital of 381.5 billion USD. The accumulated realized capital of foreign direct investment projects was estimated at 225.8 billion USD, equaling 59.1% total valid registered investment capital.

Details are as follows:

I. FDI INFLOWS

1. FDI attraction in the first 9 months of 2020

1.1. FDI performance:

Realized capital:

As of September 20th, 2020, foreign direct investment projects were estimated to disburse 13.76 billion, or 96.8% compared with the same period last year.

1.2. Investment registration

As of September 20th, 2020, total newly registered capital, adjusted capital and capital contribution or share purchase by foreign investors reached 21.20 billion USD, or 81.1% compared to the same period last year. 

Of which:

Newly registered capital: There were 1,947 new projects granted with investment certificates (a year-on-year decrease of 29.4%). Total registered capital reached 10.36 billion USD (a year-on-year decrease of 5.6%)

Adjusted capitalThere were 798 times of projects registered for adjustment of investment capital (a year-on-year decrease of 23%). Total additional registered capital reached over 5.11 billion USD (up by 6.8% compared with the same period last year). Adjusted capital in 9 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 West (South Korea) by 774 million USD.

Capital contribution and share purchase: There were 5,172 times of capital contribution and share purchase by foreign investors (a year-on-year fall of 20.5%). The total value of capital contribution was worth 5.73 billion USD (equal to 55.1% 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 last year (from nearly 40% in the 9 months of 2019 to 27% in the 9 months of 2020).

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

By sector:

Foreign investors have invested in 18 sectors, of which the processing and manufacturing led with total investment capital of almost 9.9 billion USD, accounting for 46.6% of the total registered investment capital. Electricity production and distribution ranked second with investment capital of over 4.3 billion USD, accounting for 20.6% of total registered investment capital. It is followed by the real estate business, wholesale and retail with the total registered capital of nearly 3.2 billion USD and 1.3 billion USD. The rest are other sectors.

By counterpart:

There are 111 countries and territories investing in Vietnam. Singapore led the list with total investment capital of 6.77 billion USD, accounting for 32% of total investment capital in Vietnam; South Korea ranked second with investment of 3.17 billion USD, accounting for 15% of total investment capital. China ranked third with registered investment capital of 1.87 billion USD, accounting for 8.8% of total investment capital. Next were Japan, Thailand, Taiwan, etc.

In terms of the number of new projects, Korea ranked first (499 projects); China ranked second (271 projects); Japan ranked third (209 projects); followed by Singapore (174 projects).

By location:

The foreign investors have invested in 60 provinces and cities nationwide. Bac Lieu continued to lead the list with a large project worth 4 billion USD, accounting for 18.8% of total registered investment capital. Ho Chi Minh City ranked second with total registered capital of 3.25 billion USD, accounting for nearly 15.3% of total investment capital (of which investment was mainly in the form of capital contribution and share purchase, accounting for 78.7% of the City’s total registered investment capital). Hanoi ranked third with 2.92 billion USD, accounting for 13.8% of total investment capital (of which investment in the form of project expansion and capital contribution and share purchase accounted for 42% and 41.9% 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 (719 projects); Hanoi ranked second (409 projects); Bac Ninh ranked third (119 projects).

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

Several major projects in September and the first 9 months of 2020:

In September 2020 only:

(1) BT1 Wind Power Farm Project (invested by Philippine investors) in Quang Binh with total investment of 156.8 million USD.

(2) BT 2 Wind Power Farm Project (invested by Philippine investors) in Quang Binh with total investment capital of 138.2 million USD.

(3) Brotex Vietnam Yarn Factory Project (invested by Chinese investors) in Tay Ninh, adjusted to increase investment capital by 50 million USD.

In the first 9 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) 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 1st, 2020).

(4) Victory Project - A factory manufacturing high-tech electronic products in Dong Van, Ha Nam (invested by Taiwanese investors), 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 1st, 2020)

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

2. Evaluation of the FDI performance in September and the first 9 months of 2020

- The second Covid-19 surge in the world and Vietnam has had certain impacts on foreign investment flows into our country recently. However, foreign investors still maintain good business operations and strongly believe in Vietnam's investment environment. Many foreign investors remain interested and expect to invest in Vietnam. Foreseeing the trend, the Ministry of Planning and Investment has been actively organized teleconferences on investment promotion such as "Vietnam - a rising star"  within the framework of a series of activities focusing on ASEAN by Standard Chartered Bank, of which the first event was the ASEAN Standard Chartered Business Forum 2020, held online with the participation of Prime Minister Nguyen Xuan Phuc and 4,700 delegates from around the world, and Vietnam - Singapore Online Investment Promotion Teleconference.

- Although investors’ travel have been supported with thousands of experts entering into Vietnam, a large number of experts have not entered Vietnam yet, causing difficulties for business  activities as well as new investment decisions and project expansion. The number of new projects, capital adjustment and capital contribution and share purchase by foreign investors decreased compared to the same period last year. The above results, though decreased compared to the same period, remain better than those of many other countries, showing the attractiveness of Vietnam in the eyes of international investors in the context of the strong decline in global investment due to the Covid-19 effects.

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

Accumulated as of September 20th, 2020, the whole country had 32,658 valid projects with total registered capital of nearly 381.5 billion USD. The accumulated realized capital of FDI projects was estimated at 225.8 billion USD, equaling 59.1% 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 222.92 billion USD, accounting for 58.4% of total investment capital, followed by real estate business with 59.6 billion USD (accounting for 15.6% of total investment capital); electricity production and distribution with 27.6 billion (accounting for 7.3% of total investment).

- By counterpart: In September, 2020, there are new projects from Colombian investors, bringing the total number of countries and territories with valid investment projects in Vietnam to 138. Of which, South Korea ranked first with registered capital of nearly 70.14 billion USD (accounting for 18.4% of total investment). Japan ranked second with nearly 59.9 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 47.8 billion (accounting for 12.5% total investment); followed by Hanoi with 39 billion USD (accounting for 10.2% of total investment capital); Binh Duong with over 35 billion USD (accounting for 9.2% of total investment capital).

(Detailed tables in Appendix III to the report)

II. FDI OUTFLOWS

In the first 9 months of 2020, Vietnam’s total newly registered investment and expanded investment outflows were 432.12 million USD, up by 0.1% over the same period last year. Of which, 96 projects were newly registered with total investment of 268.35 million USD (a year-on-year decrease of 12.8%) and 28 times of investment adjustment with capital gain of 163.76 million USD (a rise of 13.2% compared to the same period last year).

In September, 2020 only, 10 projects were granted with new investment registration certificates and 3 times of projects were expanded with the total new and additional investment capital of 101.9 million USD (a month-on-month fall of 59.8%).

Vietnamese investors have invested in 13 sectors abroad. Of which, processing and manufacturing led the list with 10 new projects and 7 times of capital adjustment obtaining registered capital of 227.7 million USD, accounting for 52.7% of total investment capital. Professional, scientific and technical activities ranked second with 62.5 million USD, accounting for nearly 14.5%; followed by finance, banking and insurance; accommodation and catering services.

There are 25 countries and territories receiving investment from Vietnam in the first 9 months of 2020. Leading is Germany with 4 new investment projects worth 92.6 million USD, accounting for 21.4% of the total investment. Australia ranked second with 71.7 million USD, accounting for 16.6%. Followed by United States, Laos, and Myanmar, etc.

(Detailed tables in Appendix IV to the report).

 


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