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Foreign investors in September pumped $750 million into projects in Vietnam, pushing total net foreign direct investment (FDI) over the past nine months to $8.05 billion, up 4.8 per cent year-on-year, according to the Ministry of Planning and Investment (MPI)’s Foreign Investment Agency (FIA).
|Vietnam’s manufacturing sector is a hotspot for foreign direct investment|
The figures imply foreign investors continue expanding business operations in Vietnam to tap the market’s potential and investment advantages. This year, the MPI forecasted foreign investors would pump about $11 billion into the country.
In the past nine months, foreign investors also registered $12.19 billion to invest in 720 new projects and expand 153 projects. Though the registered capital dropped 16.3 year-on-year, analysts said that did not mean Vietnam was less attractive in foreign investors’ eyes.
“That just reflects foreign investors’ difficulties, especially in developed countries which have modest economic growth in the context of the global economic recession,” said Nguyen Quang Thai, general secretary of the Vietnam Economics Association.
In the UK Trade & Investment and the Economist Intelligence Unit’s recent report, Vietnam ranked as the top destination outside the BRICs (Brazil, Russia, India and China) with the most favourable conditions for investment.
The report is based on a global survey of 523 companies. It is the third consecutive year Vietnam has been selected by executives as their key investment target.
Thai said foreign investors would continue to expand investment in Vietnam which was reputed with a large market of 86 million population and an attractive investment environment.
According to the FIA, the manufacturing sector remains the most attractive to foreign investors with 275 newly registered projects, capitalised at nearly $3 billion. Furthermore, investors also registered to expand investments at 106 manufacturing projects with total investment capital of around $653 million.