FDI inflows into M&A decrease in first eight months

16:56 | 26/08/2020

Due to the impact of the COVID-19 pandemic, foreign direct investment (FDI) inflows via capital contribution or share purchases kept falling, while newly-registered and added capital retained their growth momentum.

fdi inflows into ma decrease in first eight months
FDI inflows to fuel M&A activities have seen a drop in the first eight months

According to statistics published by the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, in the first eight months of this year, there has been a rise in both newly-registered and added capital, however, total foreign investment capital reached only $19.54 billion, signifying a decrease of 13.7 per cent on-year.

Notably, foreign investors poured $9.73 billion in 1,797 newly-registered projects, up 6.6 per cent. Meanwhile, 718 existing projects were allowed to raise investment by more than $4.87 billion, up 22.2 per cent on-year.

The foreign-invested capital via capital contribution or share purchases was $4.93 billion, only 51.8 per cent of last year's figure.

According to the agency, $11.35 billion of this foreign investment was disbursed in the first five months, equivalent to 94.9 per cent of last year’s corresponding period.

Foreign investors pledged to pour capital into 18 sectors, in which manufacturing and processing took the lead with nearly $9.3 billion, accounting for 47.7 per cent of the total capital. This was followed by power production and distribution (more than $4 billion), real estate ($2.87 billion), and wholesale and retail ($1.21 billion).

Among the 54 localities receiving foreign investment in the period, the southern province of Bac Lieu ranked at the top with $4 billion. Hanoi came second with $2.86 billion and Ba Ria-Vung Tau placed third.

Singapore is still the largest foreign investor of Vietnam with the total capital of $6.54 billion, followed by South Korea and China. In terms of project quantity, South Korea ranks first with 463 projects, with the runners-up being China and Japan.

Kim Oanh

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