Hong Kong the largest source of foreign investment in Vietnam in first 7 months of 2019

10:44 | 30/07/2019
Hong Kong retained its crown as Vietnam’s leading source of foreign direct investment (FDI) in the first seven months of this year, pouring US$5.44 billion in the Southeast Asia country, the Ministry of Planning and Investment’s Foreign Investment Agency said in its latest report.
hong kong the largest source of foreign investment in vietnam in first 7 months of 2019
A corner of Ha Noi. The capital city take the lead in term of FDI attraction in the first seven months of 2019. - Photo tripsavvy.com

South Korea ranked second with more than $3.13 billion. Mainland China came third with $2.45 billion while Singapore and Japan followed with $2.29 billion and $2.25 billion, respectively, the agency said.

In total, foreign investors pumped $20.2 billion into Vietnam in the seven-month period, down 13.5 per cent compared to the same period last year. Of the sum, nearly $8.27 billion came from 2,064 newly licensed projects, $3.42 billion came from 781 existing projects raising their capital and the remainder of more than $8.52 billion was spent by foreign players to acquire shares in Vietnamese companies.

Despite the reduction in new investment, disbursement of FDI saw a positive increase of 7 per cent to $10.6 billion compared to the same period last year, the agency noted.

From January to July, the manufacturing and processing sector remained most attractive to foreign businesses as it lured $14.46 billion, accounting for 71.5 per cent of the nation’s total FDI. It was followed by real estate with $1.47 billion or 7.3 per cent, wholesale, retail, car and motorbike repairs with $1.09 billion or 5.4 per cent and science and technology with $930 million or 4.5 per cent.

Among localities receiving FDI, the capital city ranked the top with more than $4.85 billion, followed by HCM City with $3.54 billion and two southern provinces of Binh Duong and Dong Nai with $1.73 billion and $1.43 billion, respectively.

Foreign-invested firms exported more than $100 billion worth of goods in the period while their imports hit $82.5 billion. That has resulted in a trade surplus of $18.63 billion.

Earlier, Bao Viet Securities Company (BVSC) predicted that FDI flowing into Vietnam would likely hit $22 billion by the end of this year, up 13 to 15 per cent year-on-year.

The main sources for FDI growth in the near future would come from South Korea, mainland China, Taiwan and Hong Kong, said BVSC in its latest report.

VNA

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