Until December 20th of 2019, the total newly registered, adjusted capital, capital contributed and shares purchased by foreign investors reached 38.2 billion USD, increase 7.2% as compare to the same period in 2018. The realized capital of foreign direct investment projects was estimated at 20.38 billion USD, up 6.7% as compared to the same period in 2018.
Accumulated to December 20th, 2019, the whole country has 30.827 valid projects with a total registered capital of 362.58 billion USD. The accumulated realized capital of foreign direct investment projects was estimated at 211.78 billion USD, equaling 58.4% of total valid registered capital.
I. Foreign investment in Vietnam
1. FDI attraction of 2019
1.1 Performance
Realized capital:
In 2019, foreign direct investment projects were estimated to disburse 20.38 billion USD, up 6.7% as compared to the same period in 2018. In the context of the general downturn of global FDI inflows, maintaining capital growth is encouraging achievement.
Although the realized capital of the FDI sector in 2019 increased as compared to the same period, but we can see that the increase has declined as compared to 2017 and 2018 (in 2017, the realized capital increased 10.7% as compared to 2016, that in 2018 increased 9.1% as compared to 2017).
Export and import:
Export: Export of the FDI sector (including crude oil) 181.35 billion USD, up 4.2% over the same period in 2018 and accounting for 68.8% of export turnover. Export excluding crude oil was 197.33 billion USD, up 4.4% as compared to the same period in 2018 and accounting for 68.1% of export turnover.
Import: Import of the FDI sector was nearly 145.5 billion USD, up 2.5% as compared to the same period in 2018 and capturing 57.4% of import turnover.
Generally, in 2019, the trade surplus of the FDI sector was nearly 35.86 billion USD including crude oil and 33.8 billion USD excluding crude oil. Although the trade deficit of the domestic economic sector was 23.48 billion USD but the trade surplus of the foreign investment sector offset the trade deficit of the domestic economic sector. Therefore, the whole country saw a trade deficit of 9.1 billion USD in the first 11 months of 2019. Thus, the trade surplus from the FDI sector was a source to offset the trade deficit of 25.9 billion USD of the domestic enterprise sector, resulting in a trade surplus of 9.9 billion USD in 2019.
1.2 Granting of investment certificate
As of December 20th, 2019, the total newly and additionally registered capital and capital contributed and shares purchased by foreign investors was nearly 38.2 billion USD, up 7.2% as compared to the same period in 2018. In which:
Newly granted: As of December 20th, 2019, the whole country had 3.883 new projects granted investment certificate, up 27.5% in the number of projects as compared to the same period in 2018. The total newly-registered capital was 16.75 billion USD, equaling 93.2% as compared to the same period in 2018. The average registered capital size of new projects decreased from 5.9 million USD in 2018 to 4.3 million USD in 2019. Although the newly registered investment capital in 2019 decreased but the decrease rate also slow down as compared to previous months. If excluding newly granted large projects with over 1 billion USD capital in the same period in 2018, the total newly registered investment capital in 2019 increased 32.5% as compared to the same period (In 2019, the largest investment project is 420 million USD. Meanwhile, in 2018 there were Smart city project in Hai Boi, Dong Anh district, Hanoi, with total investment capital of 4.14 billion USD, Polypropylene manufacturing plant and liquefied petroleum gas warehouse project, with a total registered investment capital of 1.2 billion USD).
Capital adjustment: There were 1.381 times of projects registered to adjust capital, increased 18.1% as compared to the same period in 2018. The total adjustment capital reached 5.8 billion USD, equaling to 76.4% as compared to the same period in 2018. In 2019, the scale of adjusting to expand the capital of projects are small (the average capital was 4.2 million USD / adjustment, smaller than the average of 2018 which was 6.5 million USD / adjustment) and there is no project raising capital with a large scale as in the same period in 2018 (in 2018, Laguna Company Limited project, invested by Singapore adjusted to raise capital with an addition of 1.12 billion USD).
Capital contribution and share purchase: Also in 2019, the whole country had 9842 times of capital contribution and share purchase by foreign investors with a total value of the capital contribution of 15.47 billion USD, increased 56.4% as compared to the same period in 2018 and capturing 40/7% of the total registered capital.
Investment in the form of capital contribution to share purchase tends to increase sharply in recent years and accounts for an increasingly large proportion of the total foreign investment. Specifically, in 2017, investment in the form of capital contribution, share purchase accounted for 17.2% of the total registered capital, in 2018 accounted for 27.9%, in 2019 accounted for 40.7% of total registered capital. Foreign investors contribute capital to domestic enterprises mainly in the field of processing and manufacturing with 45.8% of the total value and real estate with 17.8% of the total value.
By investment field:
In 2019, 19 fields were invested by foreign investors, in which, the investment mostly focused on the processing and manufacturing sector with the total capital of 24.56 billion USD, accounting for 64.6% of the total registered investment capital. This is also the sector that accounts for a large proportion of the registered capital in terms of registration for new investment projects, expansion investment projects, capital contribution, and share purchase.
Real estate business ranked second with total investment capital of 3.88 billion USD, accounting for 10.2% of total registered investment capital. Following by wholesale and retail field, scientific and professional activities, etc.
By investors
In 2019, there were 125 countries and territories having investment projects in Vietnam. Korea ranked first with total investment capital of 7.92 billion USD, accounting for 20.8% of the total investment capital into Vietnam; Hong Kong ranked second with total registered investment capital of 7.87 billion USD (including 3.85 billion USD of shares purchased in Vietnam Beverage Co., Ltd. in Hanoi, accounting for 48.9% of Hong Kong’s total investment capital); Singapore ranked third with a total registered investment capital of 4.5 billion USD, capturing 11.8% of total investment capital. Follow by Japan, China, etc. In which, investment from China and Hong Kong tends to increase over the same period due to the impact of the US-China Trade War. Specifically: investment from China increased nearly 1.65 times, from Hong Kong increased 2.4 times as compared to the same period in 2018.
By investment area
62 provinces and cities were invested by foreign investors, in which Hanoi attracted the most of FDI with a total registered capital of 8.45 billion USD, capturing 22.2% of total investment capital. Investment capital in Hanoi is mainly based on the method of capital contribution, share purchase with 6.47 billion USD, accounting for 76.6% of total registered investment capital of Hanoi.
Ho Chi Minh City ranked second with a total registered capital of nearly 8.3 billion USD, accounting for 21.8% of total investment capital, Like Hanoi, Ho Chi Minh City's investment in the form of capital contribution and share purchase accounted for a large proportion, accounting for 67.5% of the total registered investment capital of the City and accounting for 58.1% of the total number of turns, capital contribution and shares purchase of the whole country.
Follow by Binh Duong, Dong Nai, Bac Ninh, etc.
In 2019, the number of delegations coming to work to explore investment opportunities increased sharply, up about 30% over the same period last year. The partners are mainly from Japan, Korea, China, Hong Kong, Singapore. The Ministry of Planning and Investment has organized many policy dialogues and forums with enterprises from Japan, Korea, Singapore, China, Hong Kong, Thailand, Taiwan, Germany, Netherlands and India, etc. in 2019.
Some large projects in 2019 are:
- Capital contribution and share purchase project of Beerco Limited (Hong Kong) in Vietnam Beverage Limited Company, with the total value of the capital contribution of 3.85 billion USD, with the main goal of producing beer and malt for brewing beer in Hanoi.
- Techtronic Tools Co., Ltd. Project (invested by Hong Kong), with a total registered investment capital of 650 million USD, to build a factory and a research and development center to produce accessories and electric handheld devices used in industry and civil in Ho Chi Minh City.
- The Multi-purpose - hippodrome entertainment complex(Korea), with a total registered capital of 420 million USD, with the goal of building a hippodrome; organize horse racing activities; horse racing betting; operating the right to import, export, wholesale and retail of goods; building and running 3 star hotel and villa, building technical infrastructure construction and other civil constructions in Soc Son, Hanoi.- LG Display Hai Phong project adjusted to increase investment capital by 410 million USD.
- LG Display Hai Phong project adjusted to increase investment capital by 410 million USD.
- Wanna Explore Travel Co., Ltd. (Egypt), with a total registered capital of 300 million USD , invested in Ho Chi Minh City with the goal of implementing travel agency services - Operating tours and other direct support services for air transport.
- ACTR's all-steel Radian tire manufacturing project with a total registered investment capital of 280 million USD, invested by Chinese investors in Tay Ninh to produce TBR all-steel tires.
- Lcd-Qisda Screen Production Factory Project in Vietnam (invested by Taiwan), with a total registered investment capital of 263 million USD invested in Ha Nam with the goal of producing LCD liquid crystal monitors.
2. FDI accumulation until December 2019
Accumulated to December 20th, 2019, the whole country has 30.872 valid projects with a total registered capital of 362.58 billion USD. The accumulated realized capital of foreign direct investment projects was estimated at nearly 211.78 billion USD, equaling 58.4% of total valid registered capital.
- By investment field: The foreign investors have invested in 19 out of 21 branches in the national economic classification system, in which, processing and manufacturing sector accounted for the highest proportion with 214.2 billion USD, making up 59.1% of total investment capital, followed by real estate business with 58.4 billion USD (accounting for 16.1% of total investment capital), production and distribution of electricity with 23.65 billion USD (making up 6.5% of total investment capital).
- By investors: In December 2019, Honduras, Iceland and Lithuania were the three partners who had new investment projects in Vietnam, bringing the total number of countries and territories having valid investment projects in Vietnam to 135. In which, Korea ranked first with a total registered capital of 67.71 billion USD (accounting for 18.7% of total investment capital). Japan ranked second with 59.3 billion USD (capturing 16.4% of total investment capital), followed successively by Singapore and Taiwan, Hong Kong.
- By investment area: FDI has been present in all 63 provinces and cities of the country, in which Ho Chi Minh City continued to rank first in FDI attraction with 47.34 billion USD (making up nearly 13.1% of the total investment capital), followed by Binh Duong with 34.4 billion USD (accounting for 9.5% of total investment capital), Hanoi with 34.1 billion USD (capturing 9.4% of total investment capital).
II. Vietnam's investment abroad
Generally in 2019, the total newly and additionally registered investment capital abroad from Vietnam reached 508.14 million USD. In which there were 164 projects newly granted certificates of investment registration with a total investment capital of 403.15 million USD from Vietnam. There was 29 times of project adjusted investment capital with a total additional investment capital of 105 million USD from Vietnam.
By investment field: The fields of wholesale and retail ranked first in Vietnam’s investment capital aboard with the total newly and additionally registered capital of 121.6 million USD, accounting for 23.9% of total investment capital; the fields of agriculture, forestry, fisheries ranked second with 86.1 million USD and accounting for 16.9% of total investment capital; professional, scientific and technological activities ranked third with 70.1 million USD, accounting for 13.8% of total investment capital. The other projects belong to others field.
By investment area: There were 32 countries and territories received investments from Vietnam. Australia is the leading area of Vietnam's investment abroad with 154.6 million USD, accounting for 30.4% of total investment. USA ranked second with 26 projects with the total investment capital of 93.4 million USD, capturing 18.4% of the total investment capital, followed by Cambodia, Spain, Singapore, Canada, etc./.
Ministry of Planning and Investment