Situation of attracting foreign investment in the first 11 months of 2019

In the first 11 months of 2019, the total newly registered, adjusted and contributed capital to buy shares of foreign investors reached nearly 31.8 billion USD, up 3.1% over the same period in 2018

In the first 11 months of 2019, the total newly registered, adjusted and contributed capital to buy shares of foreign investors reached nearly 31.8 billion USD, up 3.1% over the same period in 2018. The realized capital of foreign direct investment projects is estimated at 17.62 billion USD, up 6.8% over the same period in 2018.

Cumulatively as of November 20, 2019, the country has 30,477 valid projects with a total registered capital of 360.69 billion USD. The cumulative realized capital of foreign direct investment projects is estimated at 209.48 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 11 months of 2019:

1.1. Operation situation:

Capital:

In the first 11 months of 2019, it is estimated that foreign direct investment projects have disbursed 17.69 billion USD, up 7.2% over the same period in 2018.

Import and export situation:

Exports: Exports of the foreign investment sector (including crude oil) reached nearly 166.7 billion USD, up 3.8% over the same period in 2018 and accounting for 69.1% of export turnover. Exports excluding crude oil reached 164.83 billion USD, up 3.9% over the same period in 2018 and accounting for 68.3% of export turnover.

Imports: Imports of the foreign investment sector reached 134.1 billion USD, up 3.1% over the same period in 2018 and accounting for 57.7% of import turnover.

Generally, in the first 11 months of 2019, the foreign investment sector had a trade surplus of nearly 32.6 billion USD including crude oil and a trade surplus of 30.7 billion USD excluding crude oil. Although the domestic economic sector had a trade deficit of 23.48 billion USD, the foreign investment surplus rate has offset the trade deficit of the domestic economic sector. Therefore, the country had a trade surplus of 9.1 billion USD in 11 months of 2019.

 1.2. Issuance of Investment Registration Certificates:

As of November 20, 2019, the total newly registered, adjusted and contributed capital to buy shares of foreign investors reached nearly 31.8 billion USD, up 3.1% over the same period in 2018. In which:

Newly registered capital: by 20/11/2019, the country had 3,478 new projects granted IRCs, an increase of 28.2% over the same period in 2018. Total newly registered capital was 14.68 billion USD, equaling 93% over the same period in 2018. Although the newly registered investment capital in 11M/2019 decreased, the rate of decrease has gradually decreased compared to the previous months. If not counting large projects of over 1 billion USD newly granted in the same period in 2018, the total newly registered investment capital in 11M/2019 up 40.5% over the same period (in 11M/2019, the investment project with the largest investment capital is 420 million USD. Meanwhile, in 11M/2018, there is a smart city project in Hai Boi commune, Dong Anh, Hanoi with a total registered capital of 4.14 billion USD and a project of Polypropylene factory,  underground storage of liquefied petroleum with a total registered capital of 1.2 billion USD).

Adjusted capital: there were 1,256 projects registered for investment capital adjustment, up 20% over the same period in 2018. The total registered capital was adjusted to 5.87 billion USD, equaling 79.3% over the same period in 2018. In 11M/2019, the scale of capital expansion adjustment of small projects, no large capital increase projects as in the same period in 2018 (11M/2018  , there was a project of Laguna – Singapore Co., Ltd. adjusted to increase capital by 1.12 billion USD).

Capital contribution and share purchase: also in the first 11 months of 2019, the country had 8,561 capital contributions and share purchases of foreign investors with a total capital contribution value of 11.24 billion USD, up 47.1% over the same period in 2018 and accounting for 35.4% 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 11 months of 2019, it accounted for 35.4% of the total registered capital.

By investment sector:

In the first 11 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 21.56 billion USD,  accounting for 67.8% of the total registered investment capital. The real estate business ranked second with a total investment of 3.31 billion USD, accounting for 10.4% 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 11 months of 2019, there were 117 countries and territories with investment projects in Vietnam. Hong Kong leads with a total investment of 6.69 billion USD (of which, 3.85 billion USD buys shares in Vietnam Beverage Co., Ltd. in Hanoi, accounting for 57.5% of Hong Kong's total investment capital); South Korea ranks second with a total investment capital of 5.73 billion USD, accounting for 18% of total investment capital in Vietnam; Singapore ranks 3rd with a total registered investment capital of 4.47 billion USD, accounting for 14% 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 3.9 times over the same period in 2018.

By investment area:

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 6.82 billion USD, accounting for 21.5% of total investment capital. Ho Chi Minh City ranks 2nd with a total registered capital of 5.48 billion USD, accounting for 17.2% of total investment capital; followed by Binh Duong, Dong Nai, Bac Ninh,...

In the first 11 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 from Japan, Korea, Singapore, China, Hong Kong, Thailand, Taiwan, Germany, the Netherlands, and India,.... in the first 11 months of 2019.

Some major projects in the first 11 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 (Korea) adjusted to increase investment capital by 410 million USD.

- The project of want to Explore Travel (Egypt) Co., Ltd., with a total registered investment capital of 300 million USD, invested in Ho Chi Minh City with the goal of providing travel agency services - Operating tours and other direct support services for dry goods transportation Ng.

- 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.

- Lcd-Qisda Vietnam Screen Factory Project (Taiwan), with a total registered investment capital of 263 million USD invested in Ha Nam with the goal of producing LCD liquid crystal screens.

- 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.

2. Cumulative foreign investment situation up to 11/2019:

Cumulatively as of November 20, 2019, the country has 30,477 valid projects with a total registered capital of 360.69 billion USD. The cumulative realized capital of foreign direct investment projects is estimated at nearly 209.5 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 212.16 billion USD, accounting for 58.8% of total investment capital, followed by real estate business with 58.7  billion USD (accounting for 16.3% of total investment capital); electricity production and distribution with 23.65 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 the top is South Korea with a total registered capital of 66.82 billion USD (accounting for 18.5% of total investment capital). Japan ranks second with nearly 59 billion USD (accounting for 16.3% 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 46.89 billion USD (accounting for 13% of total investment capital); followed by Binh Duong with 34.19 billion USD (accounting for 9.5% of total investment capital); Hanoi with 33.57 billion USD (accounting for 9.3% of total investment capital).

1. Regarding Vietnam's outward investment:

Generally, in the first 11 months of 2019, Vietnam's total outward investment capital newly granted and increased reached 458.82 million USD. In which, 148 projects were granted new investment registration certificates, with a total investment capital of 353.83 million USD. There were 29 rounds of projects adjusting investment capital with Vietnamese investment capital increasing by nearly 105 million USD.

By sector: The wholesale and retail sector leads Vietnam's outward investment capital with a total newly registered and increased capital of 118.2 million USD, accounting for 25.8% of total investment capital; the agriculture, forestry and fishery sector ranked second with 65.57 million USD and accounted for 14.3% of total investment capital; the field of scientific and technological professional activities ranked 3rd with 60 million USD, accounting for 13.1% of the total investment capital. The rest are projects in other fields.

By area: In the first 11 months of 2019, Vietnam has invested in 31 countries and territories. Australia is the leading region in terms of Vietnam's investment capital abroad with 141.3 million USD, accounting for 30.8% of total investment capital. The United States ranked 2nd with 26 projects, with a total investment capital of 93.4 million USD, accounting for 20.4% of the total investment capital. Next are Spain, Cambodia, Singapore, Canada,...

Data table: FDI 11M.2019

According to the Department of Foreign Investment