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Sunday, October 17 2021
Tiếng Việt
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Date 30/06/2021-09:52:00 AM
Report on foreign direct investment in the first 6 months of 2021

As of June 20th, 2021, the total newly registered, adjusted, and paid-in capital for share purchase by foreign investors reached USD 15.27 billion, equal to 97,4% compared to the same period last year. The capital generated by FDI projects was estimated at USD 9.24 billion, up by 6.8% over the same period last year.

Accumulated as of June 20th, 2021, the whole country had 33,787 valid projects with total registered capital of USD 397.89 billion. The accumulated realized capital of foreign direct investment projects was estimated at USD 241.1 billion, equivalent to 60.6% of total valid registered investment capital.

Details are as follows:

I. FDI INFLOWS OF VIETNAM

1. FDI attraction in the 6 months of 2021

1.1. FDI performance:

Realized capital:

As of June 20th, 2021, foreign direct investment projects were estimated to disburse USD 9.24 billion, a rise of 6.8% compared with the same period in 2020.

Import and export performance:

Export: Export turnover of the foreign investment sector continued to shoot up in the first 6 months of 2021. Export (including crude oil) reached over USD 116 billion, up by 32.2% compared with the same period last year, accounting for 74.1% of export turnover. Export (excluding crude oil) was USD 115.3 billion, a rise of 32.6% over the same period last year, accounting for 73.6% of the country's export turnover.

Import: Imports of foreign investment sector attained over USD 102.6 billion, up by 38.7% over the same period last year and accounting for 64.9% of the country's import turnover.

In the first 6 months of 2021, the FDI sector saw a trade surplus of around USD 13.4 billion including crude oil and USD 12.7 billion excluding crude oil. In which, the domestic sector has a trade decifit of USD 14.9 billion.

1.2. Investment registration

As of June 20th, 2021, total newly registered, adjusted, and paid-in capital for share purchase by foreign investors reached approximately USD 15.27 billion, equal to 97.4% compared to the same period last year. Newly registered and adjusted capital made a rise in the first 6 months of the year while foreign investors’ paid-in capital continued to fall.

Of which:

Newly registered capital: There were 804 new projects granted with investment registration certificates (a year-on-year plummet of 43.3%). Total registered capital reached about USD 9.55 billion (a year-on-year increase of 13.2%).

Adjusted capital: There were 460 projects registered for adjustment of investment capital (a year-on-year decrease of 12/5%). Total additional registered capital reached USD 4.12 billion (a year-on-year increase of 10.6%).

Paid-in capital for share purchase: There were 1,855 paid-in capital for share purchase by foreign investors (a year-on-year decline of 55%). The total value of paid-in capital was worth USD 1.61 billion (a year-on-year decline of 54.3%).

(Detailed data in Appendix I attached).

By sector:

Foreign investors had invested in 18 sectors, of which the processing and manufacturing led with total investment capital of USD 6.98 billion, accounting for 45.7% of total registered investment capital. Electricity production and distribution ranked the second with investment capital of about USD 5.43 billion, accounting for 35% of total registered investment capital. It was followed by the real estate business, scientific and technological activities with the total registered capital of about USD 1.15 billion and USD 476 million, respectively. The rest were other sectors.

By counterpart:

There were 80 countries and territories investing in Vietnam in the first 6 months of 2021. Investment of some big partners such as Singapore, Japan, and South Korea has increased over the same period. Of which, Singapore led the list with total investment capital of approximately USD 5.64 billion, accounting for nearly 36.9% of total investment capital in Vietnam, a year-on-year increase of 3.6%; Japan ranked the second with investment of USD 2.44 billion, accounting for 16% of total investment capital (in which, investment capital of Singapore and Japan was mainly in the form of new investment, accounting for 84% and 67.8% of total investment capital of each country subsequently). South Korea ranked the third with registered investment capital of USD 2.05 billion, accounting nearly 13.4% of total investment capital, a year-on-year increase of 43.6%. Next were China, Hong Kong, Taiwan, and so on.

By location:

The foreign investors had invested in 56 provinces and cities nationwide in the first 6 of 2021. Long An led the list with total registered investment capital of USD 3.57 billion, accounting for 23.4% of total investment capital. Ho Chi Minh City ranked the second with total registered capital of USD 1.43 billion, accounting for 9.3% of total investment capital. Can Tho ranked the third with USD 1.32 billion, or 8.6% of total investment capital. Next were Binh Duong, Hai Phong, Hanoi and so forth.

(Detailed data in Appendix II attached).

Some major projects in the 6 months of 2021:

(1) Long An I and II LNG Power Plant Project (invested by Singaporean investors) having total registered capital of more than USD 3.1 billion, with the goal of transmitting, distributing, and producing electricity in Long An (granted with a certificate of investment on March 19th, 2021).

(2) O Mon II Thermal Power Plant Factory (invested by Japanese investors) in Can Tho, with total investment capital of USD 1.31 billion, aimed to create a thermal power factory for electricity supply for the regional and national power system (granted with a certificate of investment on January 22nd, 2021)

(3) LG Display Project (invested by Korean investors) in Hai Phong with investment capital adjusted to increase by about USD 750 million (granted with an amended investment certificate on February 4th, 2021).

(4) Polytex Far Eastern Vietnam Co., Ltd Factory Project (invested by Taiwanese investors) with investment capital adjusted to increase by 610 million USD (granted with an amended investment certificate on May 13th, 2021).

(5) Jinko Solar PV Vietnam Solar Cell Technology Project (invested by Hong Kong investors) in Quang Ninh, having total investment capital of USD 498 million, with the goal of producing solar panels and electrical equipment (granted with a certificate of investment on March 29th, 2021).

2. Evaluation of the FDI performance in the first 6 months of 2021.

- The number of realized capital of foreign investment projects in the first 6 months increased 6.8% over the same period last year. Several foreign invested enterprises have recovered and maintained to operate business after the impact of COVID-19 pandemic.

- The number of newly registered capital and capital for adjustment continued to rise in the first 6 months of 2021, contributing to maintain the total registered investment capital of the country (a year-on-year slightly decrease of 2.6%). However, newly registered and adjusted capital projects both decreased over the same period (43.3% and 12.5% respectively). This fluctuation was mainly in the small-scale projects group. Specifically:

+ The number of projects with a scale of under USD 1 million decreased by 47.7% over the same period in 2020, and 54.2% over the same period in 2019; The number of new projects with a scale of under USD 5 million decreased by 48.2% over the same period in 2020, and 56.1% over the same period in 2019; The number of new projects with a scale from USD 5 million to under USD 50 million decreased by 13.4% over the same period in 2020, and 43% over the same period in 2019; Meanwhile, the number of new projects with a scale of over 50 million USD increased by 73.3% over the same period in 2020.

+ The number of adjusted capital projects with a scale of under USD 5 million decreased 19% over the same period in 2020 and 28.5% over the same period in 2019.

The decrease in the number of newly registered as well as adjusted small-scale capital while the increase of registered investment capital have risen the average size of newly registered and adjusted capital projects over the same period last year. The average capital size increased from nearly USD 6 million per project in the first 6 months of 2020 to USD 11.8 million per project in the first 6 months of 2021, and increased from USD 7.1 million per adjusted capital project to over USD 8.9 million per adjusted capital project.

- The average size of newly registered and adjusted capital projects both increased over the same period (a year-on-year increase from USD 2.2 million per project to USD 14.4 million per project; and a year-on-year increase from USD 7.9 million per adjusted capital project to USD 11.3 million per adjusted capital project).

- Investment by purchasing paid-in capital by foreign investors in the first 6 months of 2021 continued to fall according to the general flow of 2021, in both the number of purchasing paid-in capital and the total value of paid-in capital. The Covid-19 pandemic has seriously affected to the M&A market in the world in general and in Vietnam because the M&A’s characteristic requires direct participation, market and business research of foreign investors. The limitation in travel in the context of the Covid-19 pandemic has significantly affected to the investment decision of foreign investors. In addition, the appearance of some lare M&A transactions in the first 6 monts of 2021 also affected to decrease the M&A’s value in the first 6 monts of 2021. Although paid-in capital for share purchase and the total value of paid-in capital decreased but the decline level was gradually improved.

- Import and export of the FDI sector continued to grow in the first 6 months of 2021. The FDI sector had a trade surplus of about USD 13.4 billion (including crude oil). But the trade surplus of the FDI sector was not enough to offset the trade deficit of USD 14.9 billion of domestic business sector, so the country the country to gain a trade deficit of USD 1.5 billion in the first 6 months of 2021.

Some reasons in decreasing the number of newly registered, adjusted projects and paid-in capital for share purchase

- Objective: (i) the global FDI decreases; (ii) the Covid-19 in some partner countries (Japan, South Korea, Taiwan, etc.) is still complicated; (iii) countries around the world still limits travelling; and (iv) investors in the new investment wave require to immediately qualify on lands, human resources, supply of materials, fast procedures, competitive incentives, but in some cases we haven’t meet needs of investors.

- Subjective: (i) the selective investment attraction policies of Vietnam (reducing the quantity and increasing the quality); (ii) commerce flights between Vietnam and partner countries are suspended, or if there are, the procedures are also complicated, thus it limits new investors to Vietnam to survey and make investment decisions; (iii) business investment procedures are still barriers; (iv) investment promotion activities are not proactive and ineffective in the traditional competition to attract foreign investment.

3. Accumulated foreign investment as of June 20th, 2021

Accumulated as of June 20th, 2021, the whole country had 33,787 valid projects with total registered capital of nearly USD 397.9 billion. The accumulated realized capital of FDI projects was estimated at USD 241.1 billion, equaling 60.6% of total valid registered capital.

- By sector: Foreign investors have invested in 19/21 sectors in the national economic classification system, in which the processing and manufacturing sector accounted for the highest proportion with almost USD 233.7 billion, accounting for 58.7% of total investment capital. Followed is real estate business with over USD 61 billion (or 15.3% of total investment capital); electricity production and distribution with USD 33.6 billion (or 8.5% of total investment capital).

- By counterpart: There are 140 countries and territories having valid investment projects in Vietnam. In which, South Korea ranked first with a total registered capital of USD 72.1 billion (accounting for 18.1% of total investment capital). Japan ranked second with USD 63.1 billion (or 15.8% of total investment capital). Next were Singapore, Taiwan, and Hong Kong.

- By location: FDI has been present in all 63 provinces and cities nationwide, of which Ho Chi Minh City remains the leading province in attracting foreign investment with over USD 48.8 billion (accounting for 12.3% of total investment), followed by Binh Duong with USD 36.8 billion (or over 9.2% of total investment capital), Ha Noi with USD 36.6 billion (or 9.2% of total investment capital).

(Detailed data in Appendix III attached)

II. FDI OUTFLOWS OF VIETNAM

In the first 6 months of 2021, Vietnam’s total newly registered investment and additional investment outflows were approximately 547 million USD (up by 2.5 times over the same period last year). Of which, 24 projects were granted with newly registered certificate of investment, with total investment capital of USD 143.8 million (equaling 77.6% compared to the same period last year), and 9 times project adjusted investment capital with capital gain of 403.2 million USD (a year-on-year increase of 10.8 times).

Vietnamese investors have invested in 12 sectors abroad. Of which, professional, scientific and technical activities led the list with 3 times of project adjusted capital with total newly registered and additional capital of USD 270.8 million, accounting for 49.5% of total investment capital. Wholesale and retail ranked second with 148.6 million USD, accounting for 27.2%; followed by agriculture, forestry and fishery; administrative activities and support service and so forth.

There were 15 countries and territories receiving investment from Vietnam in the first 6 months of 2021. Leading is United State of America with 3 new investment projects and 2 expanded projects worth USD 302.8 million, accounting for 55.4% of the total investment capital. Campuchia ranked second with USD 89.2 million, accounting for 16.3% of total investment capital. Followed by Canada and France, with the investment capital of 32.08 million USD and over 32 million USD correspondingly.

Accumulated as of June 20th, 2021, Vietnam had 1,420 valid aboard investment projects with total registered investment capital of nearly USD 21.8 billion. Vietnam’s investment aboard focuses mainly in: mining (36.4%); agriculture, forestry and fishery (15.3%). The areas receiving the most investment from Vietnam were Laos (23.7%); Campuchia (13.1%); Russia (12.9%)./.

(Detailed data in Appendix IV and V attached).


Attach Files:
FDI_06.2021.xlsx
Foreign Investment Agency
Ministry of Planning and Investment

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