Work underway on buildings in HCM City which took the lead in foreign investment attraction in 11 months of 2022. (Photo: VNA)During the period, new capital registered in the countryby foreign investors saw a yearly decline of 18% to 11.5 billionUSD while their capital contributions and share purchases also declined 7%year-on-year to nearly 4.08 billion USD.
The agency underlined two factors behind the falling registeredcapital, which were stringent COVID-19 preventive measures early 2022 andglobal uncertainties.
It said strict COVID-19 preventive measures imposed in thebeginning months of the year had made it more difficult for foreign investorsto travel to Vietnam to seek new investment opportunities. Such hindrance heldback the number of newly-registered projects in early 2022.
Global uncertainties, including geopolitical conflicts,inflationary pressures and supply chain disruptions, compounded the situationby scaling down the capital flows from big economies, especially Vietnam'spartners.
One bright spot in the period was adjusted capital whichsurged 23.3% year-on-year to 9.54 billion USD, the FIA noted.
According to the agency, the adjusted capital continued tomaintain its growth momentum, which was a signal to confirm the confidenceof foreign investors in the economy and investment environment of Vietnam.Therefore, they decided to add more capital to their existingprojects in the country.
Statistics from the FIA also showed that the average scale ofadjusted capital per project in 11 months of 2022 increased 4.9% overthe same period of last year. Notably, many projects in manufacturing ofelectronic and high-tech products witnessed capital added on a largescale during the reviewed period.
On the bright side, many large-scale projects had their capitaladjusted up significantly in ten months. For instance, SamsungElectro-Mechanics was given two capital boosts, of 920 million USD and 267million USD.
Samsung HCMC CE followed suit with 841 million USD.Other projects to manufacture electronics and multimediadevices in Bac Ninh, Nghe An and Hai Phong were financed withadditional capital of 306 million USD, 260 million USD and 127 million USD,respectively.
At the same time, disbursed capital also witnessed apositive increase of 15% to reach 19.68 billion USD in the period, theFIA added.
From January to November, manufacturing and processing lured thelion's share of foreign investment with over 14.96 billion USD, makingup 59.5% of total capital. It was followed by real estate with 4.19 billionUSD, or 16.7%. Electricity production and distribution and scienceand technology were the runners-up with 2.26 billion USD and 1.03 billion USD,respectively.
Singapore was the top source of capital pledges in the periodwith 5.78 billion USD, accounting for 23% of the total. Japan came nextwith over 4.6 billion USD or 13% while the Republic of Korea ranked third withabove 4.1 billion USD or 16.4%.
Others sources of foreign capital were China, Hong Kong(China) and Denmark.
Among cities and provinces receiving foreign capital in theperiod, Ho Chi Minh City led with nearly 3.54 billion USD, up 3.3% year-on-yearor equivalent to 14% of the total. The southern province of Binh Duongranked second with over 3.03 billion USD, up 45% year-on-year oraccounting for 12.1% of the total.
In a recent report to the National Assembly, the Ministry ofPlanning and Investment said that foreign direct investment (FDI) disbursementthis year could reach 21-22 billion USD, an increase of about 6.4-11.5% comparedto 2021. These figures, then, meant that Vietnam's FDI attractionwas rapidly moving towards recovery.
Foreign enterprises continued to recover, maintain and expandtheir production and business activities in Vietnam, said FIA Director Do NhatHoang.
Truong An Duong from Frasers Property Vietnam Co told Dau tu (Investment) newspaper thathis company was keen on looking for investment opportunities in Vietnam./.
VNA
