As of November 20th,2020,the total newly registered capital, adjusted capital and capital contribution or share purchase by foreign investorsreached26.43billionUSD,equaling 83.1%compared to the same period last year.Capital generated by FDI projects was estimated at17.2billionUSD,or97.6%over the same period last year.
Accumulated as of November 20th, 2020, the whole country had 32,915validprojects with total registered capital of382.9billionUSD.The accumulated realized capital of foreign direct investment projects was estimated at229.1billionUSD, equaling59.8%total valid registered investment capital.
Details are as follows:
I. FDI INFLOWS
1. FDI attractionin thefirst 11 monthsof 2020
1.1.FDI performance:
Realized capital:
As of November 20th, 2020, foreign direct investment projects were estimated to disburse17.2billion,or97.6% comparedwith the same period last year.
Import and export performance:
Export: Export turnover of the foreigninvestmentsectorturned toincrease after continuous decrease in ten months.Export (including crude oil) reachednearly 181billion USD,a 6.6% rise over thesame periodlast year,accounting for71.3% of export turnover.Export excluding crude oil was179.5billion USD,a rise of 6.9%over thesame periodlast year,accounting for70.7% ofthe country'sexportturnoverin theelevenmonthsof 2020.
Imports: Imports of foreign investment sector attained 148.9billion USD,up by 9.1%overthe same periodlast year and accounting for63.5% of the country's import turnover.
In the first 11 months of 2020, the FDI sector still saw a trade surplus of 32.1billion USD including crude oil anda trade surplus of 30.6billion USD excluding crude oil,offsetting the trade deficit of 12.7billion USD of the domestic sector, helping the country to gain a trade surplus of 19.4billionUSD.
1.2.Investment registration
As of November 20th, 2020, total newly registered capital, adjusted capital and capital contribution or share purchase by foreign investorsreached26.43billion USD,or83.1%compared to the same period last year.
Of which:
Newly registered capital:There were 2,313new projects grantedwith investment certificates(ayear-on-year decrease of 33.5%). Total registered capital reached 13.6billionUSD(ayear-on-year decrease of 7.6%).
Adjusted capital:There were 1,051times of projects registered for adjustment of investment capital (a year-on-year decrease of 16.3%).Total additional registered capital reachedover 6.3billionUSD(up by7.8%compared with the sameperiod last year).
Capital contribution and share purchase:There were5,812times of capital contribution and share purchase by foreign investors (a year-on-year fall of 32.1%). The total value of capital contribution was worth6.5 billionUSD(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(from35.4% in the11months of 2019 to24.7% in the11months of 2020).
(See detailed data table in Appendix I attached to the Report)
By sector:
Foreign investors have invested in19sectors, of which the processing and manufacturing led with total investment capital of almost 12.7billion USD, accounting for 48.2%of the total registered investment capital.Electricity production and distribution ranked second with investment capital of over 4.9billionUSD, accounting for18.7% of total registered investment capital.It is followed by the real estate business, wholesale and retail with the total registered capital of nearly 3.8billionUSD and1.5billionUSD.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 8.1billion USD, accounting for30.6% of total investment capital in Vietnam;South Korearanked secondwith investment of3.7billionUSD, accounting for14% of total investment capital.Chinaranked third with registered investment capital of2.4billionUSD, accounting for9.1% of total investment capital.Next were Japan, Taiwan, Thailand, etc.
In terms of the number of new projects, Korea ranked first(573projects);China ranked second (311projects);Japan ranked third (251projects);followed by Hong Kong (164projects).
By location:
Theforeign investorshave invested in60provinces andcitiesnationwide in 11 months.Bac Lieucontinued tolead the list with a large project worth 4 billion USD, accounting for15.1% of total registered investment capital.Ho Chi Minh Cityrankedsecondwith total registered capitalofover 3.8billionUSD, accounting for 14.4%of total investmentcapital (of which investment was mainly in the form of capital contribution and share purchase, accounting for74.4% of the City’s total registered investment capital).Hanoiranked third with3.2billionUSD, accounting for12.2% 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, HaiPhong, and so on.
Regarding the number of new projects, Ho Chi Minh City led the list (865projects);Hanoi ranked second (470projects);Bac Ninh ranked third (136projects).
(See detailed data table in Appendix II attached to the Report)
Several major projectsin September and thefirst11monthsof 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 adjustmentand 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 ofNovember20th,2020
Accumulated as of November 20th,2020, thewhole country had 32,915valid projects with total registered capital of nearly 382.9 billionUSD.The accumulated realized capital of FDI projects was estimated at 229.1billion 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 225.7billion USD, accountingfor nearly 59% oftotal investment capital, followed by real estate business with60.1billion USD (accounting for15.7% of total investment capital);electricity production and distribution with28.7billion (accounting for7.5% 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 ofnearly70.5billion USD (accounting for 18.4% of total investment).Japan ranked second withnearly60.1billion 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 48billion (accounting for12.5% total investment);followed byHanoiwith35.9billion USD (accounting for9.4% of total investment capital);Binh Duongwithroughly 35.4billion USD (accounting for9.2% of total investment capital).
(See detailed data table in Appendix III attached to the Report)
II.FDI OUTFLOWS
In thefirst11months of 2020, Vietnam’s total newly registered investment and expanded investment outflows were 490.4million USD,up by 6.9% over the same period last year.Of which,114projects were newly registered with total investment of 316.4million USD (a year-on-year increase of10.6%)and30times of investment adjustment with capital gain of174million USD(a rise of 65.7% compared to the same period last year).
In November, 2020 only, 07 projects ranted with newinvestment registration certificates and 02 times of capital adjustmentbrought about the total investment outflow of12.1million 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 with11new projectsand07times of capital adjustment obtaining registered capital of 228.2million USD, accounting for46.5% oftotal investment capital.Finance,bankingand insurance rankedsecond with 68.2 million USD, accounting for 13.9%;followed byprofessional, scientific and technical activities and wholesale and retail trade.
There are28countries and territories receiving investment from Vietnam in thefirst11months of 2020. Leading is Australia with13new investment projects and 02 expanded projects worth101.8million USD, accounting for20.8% of the total investment.Germany ranked second with92.6millionUSD, accounting for18.9%.Followed byLaos, United States, etc.
(See detailed data table in Appendices IV and V attached to the Report)
Attach Files: FDI_11.2020_E.xlsx