Situation of attracting foreign investment in the first 10 months of 2019

In the first 10 months of 2019, the total newly registered, adjusted and contributed capital to buy shares of foreign investors was 29.11 billion USD, up 4.3% over the same period in 2018. The realized capital of foreign direct investment projects is estimated at 16.21 billion USD, up 7.4% over the same period in 2018.

Accumulated as of October 20, 2019, the country has 30,136 valid projects with a total registered capital of 358.53 billion USD. The cumulative realized capital of foreign direct investment projects is estimated at nearly 208 billion USD, equal to 58% of the total valid registered capital.

Details are as follows:

1. Regarding foreign investment in Vietnam:
2. The situation of attracting foreign investors in the first 10 months of 2019:

1.1. Operation situation:

Capital:

In the first 10 months of 2019, it is estimated that foreign direct investment projects have disbursed 16.21 billion USD, up 7.4% over the same period in 2018.

Import and export situation:

Exports: Exports of the foreign investment sector (including crude oil) reached 150.43 billion USD, up 3.9% over the same period in 2018 and accounting for 69.3% of export turnover. Exports excluding crude oil reached 148.72 billion USD, up 4.1% over the same period in 2018 and accounting for 68.5% of export turnover.

Imports: Imports of the foreign investment sector reached 122.1 billion USD, up 4.4% over the same period in 2018 and accounting for 58.1% of import turnover.

Generally, in the first 10 months of 2019, the foreign investment sector had a trade surplus of 28.32 billion USD including crude oil and a trade surplus of 26.62 billion USD excluding crude oil. Although the domestic economic sector had a trade deficit of 21.27 billion USD, the foreign investment surplus rate has offset the trade deficit of the domestic economic sector. Therefore, the whole country had a trade surplus of 7.05 billion USD in the first 10 months of 2019.

 1.2. Issuance of Investment Registration Certificates:

As of 20/10/2019, the total newly registered, adjusted and contributed capital to buy shares of foreign investors was 29.11 billion USD, up 4.3% over the same period in 2018. In which:

Newly registered capital: by October 20, 2019, the country had 3,094 new projects granted IRCs, an increase of 25.9% over the same period in 2018. The total newly registered capital was 12.83 billion USD, equaling 85.4% over the same period in 2018. Newly registered investment capital decreased over the same period due to a decrease in project size, in 10M/2019 the investment project with the largest investment capital scale was 420 million USD. Meanwhile, in the first 10 months of 2018, there were a number of large projects that were granted new investment investment certificates (Smart City project in Hai Boi commune, Dong Anh, Hanoi – Japan invested with a total registered capital of 4.14 billion USD; Polypropylene factory project and warehouse liquefied petroleum (LNG) – South Korea invested with a total registered capital of 1.2 billion USD in Ba Ria – Vung Tau). Excluding large projects over 1 billion USD, the total newly registered investment capital in 10M/2019 increased by 32.5% over the same period in 2018.

Adjusted capital: there were 1,145 projects registered for investment capital adjustment, up 20% over the same period in 2018. Total registered capital adjusted to 5.47 billion USD, equaling 83.6% over the same period in 2018. In the first 10 months of 2019, the scale of capital expansion of small projects, no large capital increase projects as in the same period in 2018 (10M/2018, there was a project of Laguna – Singapore Co., Ltd. adjusted to increase capital by 1.12 billion USD).

Capital contribution, share purchase: also in the first 10 months of 2019, the country had 7,509 capital contributions and share purchases of foreign investors with a total capital contribution value of 10.81 billion USD, up 70.5% over the same period in 2018 and accounting for 37.1% of the total registered capital.

Investment in the form of capital contribution to buy shares has tended to increase sharply in recent years and accounts for an increasingly large proportion of total foreign investment capital. Specifically, in 2017, investment in the form of capital contribution and share purchase accounted for 17.02% of the total registered capital, in 2018 it accounted for 27.78%, and in the first 10 months of 2019, it accounted for 37.1% of the total registered capital.

By investment sector:

In the first 10 months of 2019, foreign investors have invested in 19 sectors, of which the most investment is focused on the processing and manufacturing industry with a total capital of 18.83 billion USD.  accounting for 68.1% of the total registered investment capital. The field of real estate business ranks second with a total investment capital of 2.98 billion USD, accounting for 10.2% of the total registered investment capital. Next are the fields of wholesale and retail, scientific and technological professional activities,...

 According to the investment partner:

In the first 10 months of 2019, there were 107 countries and territories with investment projects in Vietnam. Hong Kong leads with a total investment of 6.45 billion USD (of which, 3.85 billion USD buys shares in Vietnam Beverage Co., Ltd. in Hanoi, accounting for 59.7% of Hong Kong's total investment capital); South Korea ranks second with a total investment capital of 5.52 billion USD, accounting for 19% of total investment capital in Vietnam; Singapore ranks 3rd with a total registered investment capital of 4.21 billion USD, accounting for 14.5% of total investment capital; Next is China, Japan,... In particular, investment from China and Hong Kong tended to increase over the same period due to the impact of the US-China trade war. Specifically: investment from China increased nearly 2 times, from Hong Kong increased 3.94 times over the same period in 2018.

By investment area:

In the first 10 months of 2019, foreign investors have invested in 60 provinces and cities, of which Hanoi is the locality that attracts the most foreign investment capital with a total registered capital of 6.61 billion USD, accounting for 22.7% of total investment capital. Ho Chi Minh City ranks 2nd with a total registered capital of 4.96 billion USD, accounting for 17% of total investment capital; followed by Binh Duong, Dong Nai, Bac Ninh,...

In the first 10 months of 2019, the number of delegations to work to explore investment opportunities increased quite sharply, increasing by about 30% over the same period last year. In particular, many delegations explored opportunities to shift investment from China to Vietnam due to the impact of the US-China trade war. The partners are mainly from Japan, Korea, China, Hong Kong, Singapore. The Ministry of Planning and Investment has organized many policy dialogues and seminars with businesses of Japan, Korea, Singapore, China, Hong Kong, Thailand, Taiwan, Germany, the Netherlands, and India,.... in the first 10 months of 2019.

Some major projects in the first 10 months of 2019:

- The project of capital contribution and purchase of shares of Beerco Limited (Hong Kong) into Vietnam Beverage Co., Ltd., the value of contributed capital is 3.85 billion USD with the main goal of producing beer and malt fermented beer in Hanoi.

- Multi-purpose entertainment complex project – horse racetrack (Korea), total registered investment capital of 420 million USD with the goal of building a horse racetrack; organizing horse racing activities; organizing horse racing betting; Exercising the right to import and export, wholesale and retail goods; construction and business of 3-star hotels and villas; construction of technical infrastructure works and other civil works in Soc Son, Hanoi

- LG Display Hai Phong project adjusts to increase investment capital by 410 million USD.

- ACTR all-steel Radian tire manufacturing project (China), with a total registered investment capital of 280 million USD invested in Tay Ninh with the goal of producing TBR all-steel tires.

- The project of Factory for manufacturing electronic equipment, network equipment and multimedia audio products, with a total registered investment capital of 260 million USD invested by Goertek (Hongkong) co., Limited in Bac Ninh.

- Hoa Hoi solar power plant project in Phu Yen, with a total registered investment capital of 216.7 million USD, invested by a Thai investor in Phu Yen with the goal of producing solar power.

- The project of Advance Vietnam Tire Co., Ltd., with a total registered investment capital of 214.4 million USD invested by Guizhou Advance Type Investment co.,ltd (China) with the goal of producing and consuming tires, rubber and related products in Tien Giang.

2. Cumulative foreign investment situation up to 10/2019:

Accumulated as of October 20, 2019, the country has 30,136 valid projects with a total registered capital of 358.53 billion USD. The cumulative realized capital of foreign direct investment projects is estimated at nearly 208 billion USD, equal to 58% of the total valid registered capital.

- By sector: foreign investors have invested in 19/21 sectors in the national economic sub-sectoral system, of which the processing and manufacturing industry accounts for the highest proportion with 210.69 billion USD, accounting for 58.8% of total investment capital, followed by real estate business with 58.5 billion USD (accounting for 16.3% of total investment capital); electricity production and distribution with 23.58 billion USD (accounting for 6.6% of total investment capital).

- According to investment partners: There are 132 countries and territories with valid investment projects in Vietnam, of which South Korea ranks first with a total registered capital of 66.62 billion USD (accounting for 18.6% of total investment capital). Japan ranked second with 58.92 billion USD (accounting for 16.4% of total investment capital), followed by Singapore and Taiwan and Hong Kong, respectively.

- By area: Foreign investment has been present in all 63 provinces and cities in the country, of which Ho Chi Minh City is still the leading locality in attracting foreign investment with 46.5 billion USD (accounting for nearly 13% of total investment capital); followed by Binh Duong with 33.94 billion USD (accounting for 9.5% of total investment capital); Hanoi with nearly 33.46 billion USD (accounting for 9.3% of total investment capital).

1. Regarding Vietnam's outward investment:

Generally, in the first 10 months of 2019, Vietnam's total outward investment capital newly granted and increased reached 411.92 million USD. In which, 128 projects were granted new investment registration certificates, with a total investment capital of 311.92 million USD. There are 28 turns of projects adjusting investment capital with Vietnamese investment capital increasing by nearly 100 million USD.

By sector: The wholesale and retail sector leads Vietnam's outward investment capital with a total newly registered and increased capital of 110.7 million USD, accounting for 26.9% of total investment capital; the agriculture, forestry and fishery sector ranked second with 65.57 million USD and accounted for 15.9% of total investment capital; the field of scientific and technological professional activities ranked 3rd with 59.35 million USD, accounting for 14.4% of the total investment capital. The rest are projects in other fields.

By area: In the first 10 months of 2019, Vietnam has invested in 30 countries and territories. Australia is the leading area in terms of Vietnam's investment capital abroad with 140.63 million USD, accounting for 34.1% of total investment capital. The United States ranks 2nd with 22 projects, with a total investment capital of 61.46 million USD, accounting for 14.9% of the total investment capital. Next are Spain, Cambodia, Singapore, Canada,...
Data table: FDI 10M.2019

Department of Foreign Investment