Situation of attracting foreign investment in the first 12 months of 2019

As of December 20, 2019, the total newly registered, adjusted and contributed capital to buy shares of foreign investors reached 38.02 billion USD, up 7.2% over the same period in 2018. The realized capital of foreign direct investment projects is estimated at 20.38 billion USD, up 6.7% over the same period in 2018.

Accumulated as of December 20, 2019, the country has 30,827 valid projects with a total registered capital of 362.58 billion USD. The cumulative realized capital of foreign direct investment projects is estimated at 211.78 billion USD, equal to 58.4% of the total valid registered capital.

Details are as follows:

1. ON FOREIGN INVESTMENT IN VIETNAM
2. Situation of attracting foreign investment in 2019:

1.1. Operation situation:

Capital:

 In 2019, it is estimated that foreign direct investment projects disbursed 20.38 billion USD, up 6.7% over the same period in 2018. In the context of the general decline in global FDI flows, Maintaining the growth rate of realized capital is an encouraging achievement.

Although the realized capital of the foreign investment sector in 2019 increased over the same period, it can be seen that the increase has decreased compared to 2017 and 2018 (in 2017 the realized capital increased by 10.7% compared to 2016, in 2018 the realized capital increased by 9.1% compared to 2017).

Import and export situation:

Exports: Exports of the foreign investment sector (including crude oil) reached 181.35 billion USD, up 4.2% over the same period in 2018 and accounting for 68.8% of export turnover. Exports excluding crude oil reached 179.33 billion USD, up 4.4% over the same period in 2018 and accounting for 68.1% of export turnover.

Imports: Imports of the foreign investment sector reached nearly 145.5 billion USD, up 2.5% over the same period in 2018 and accounting for 57.4% of import turnover.

Generally, in 2019, the foreign-invested sector had a trade surplus of nearly 35.86 billion USD including crude oil and a trade surplus of 33.8 billion USD excluding crude oil. Thus, the trade surplus from the foreign-invested sector is a source of compensation for imports25.9 billion USD of the domestic business sector, making Vietnam's trade balance surplus 9.9 billion USD in 2019.

1.2. Investment registration status:

As of 20/12/2019, the total newly registered, adjusted and contributed capital to buy shares of foreign investors reached nearly 38.02 billion USD, up 7.2% over the same period in 2018. In which:

Newly registered capital: by December 20, 2019, the country had 3,883 new projects granted IRCs, an increase of 27.5% in the number of projects over the same period in 2018. Total newly registered capital was 16.75 billion USD, equaling 93.2% over the same period in 2018. The average registered capital size of new projects decreased from 5.9 million USD in 2018 to 4.3 million USD in 2019. Although newly registered investment capital in 2019 decreased but the rate of decline has gradually decreased compared to 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  2019 increased by 32.5% over the same period (in 2019 it is expected the investment project has the largest investment capital of 420 million USD. Meanwhile, in 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 1,381 projects registered for investment capital adjustment, up 18.1% over the same period in 2018. Total registered capital adjusted to 5.8 billion USD, equaling 76.4% over the same period in 2018. In 2019, the scale of capital expansion adjustment of small projects (an average of 4.2 million USD/adjustment, smaller than the average of 2018 of 6.5 million USD/adjustment) and no large capital increase projects as in the same period in 2018 (in 2018, there was a project Laguna – Singapore Co., Ltd. adjusted to increase capital by 1.12 billion USD).

Capital contribution and share purchase: also in 2019, the country had 9,842 capital contributions and share purchases of foreign investors with a total capital contribution value of 15.47 billion USD, up 56.4% over the same period in 2018 and accounting for 40.7% 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 17.2% of the total registered capital, in 2018 it accounted for 27.9%, and in 2019 it accounted for 40.7% of the total registered capital. Foreign investors contributed capital to domestic enterprises, mainly in the field of processing and manufacturing industry with 45.8% of the total value and real estate business with 17.8% of the total value.

By investment sector:

In 2019, foreign investors invested in 19 sectors, of which the most focused investment was in the processing and manufacturing industry with a total capital of 24.56 billion USD.  accounting for 64.6% of the total registered investment capital. This is also a field that accounts for a large proportion of registered capital both in terms of registration in new investment projects, expansion investment projects and capital contribution, buy shares.

The real estate business ranked second with a total investment capital of 3.88 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 2019, there were 125 countries and territories investing in Vietnam. South Korea leads with a total investment of 7.92 billion USD, accounting for 20.8% of total investment capital in Vietnam;  Hong Kong ranked second with a total investment of 7.87 billion USD (of which, 3.85 billion USD bought shares in Vietnam Beverage Co., Ltd. in Hanoi, accounting for 48.9% of Hong Kong's total investment capital);  Singapore ranks 3rd with a total registered investment capital of 4.5 billion USD, accounting for 11.8% of total investment capital. Next are Japan and China,... 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 1.65 times, from Hong Kong increased 2.4 times over the same period in 2018.

By investment area:

Foreign investors have invested in 62 provinces and cities, of which Hanoi is the locality that attracts the most foreign investment capital with a total registered capital of 8.45 billion USD, accounting for 22.2% of the total investment capital. Investment capital in Hanoi is mainly in the form of capital contribution, bought shares with 6.47 billion USD, accounting for 76.6% of Hanoi's total registered investment capital.

Ho Chi Minh City ranks 2nd with a total registered capital of nearly 8.3 billion USD, accounting for 21.8% of total investment capital. Just like Hanoi, Ho Chi Minh City's investment in the form of capital contribution and share purchase accounts for a large proportion, accounting for 67.5% of the city's total registered investment capital and accounting for 58.1% of the total number of capital contributions and share purchases of the country.

Next are Binh Duong, Dong Nai, Bac Ninh,...

In 2019, the number of delegations to work to explore investment opportunities increased quite sharply, increasing by about 30% over the same period last year. 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 2019.

Some major projects in 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.

- Techtronic Tools (Hong Kong) Co., Ltd. project, with a total registered investment of 650 million USD with the goal of building a manufacturing plant and a research and development center for the production of accessories, smart portable electrical equipment for industrial and civil use in Ho Chi Minh City

- 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.

2. Cumulative foreign investment situation up to12/2019:

Accumulated as of December 20, 2019, the country has 30,827 valid projects with a total registered capital of 362.58 billion USD. The cumulative realized capital of foreign direct investment projects is estimated at 211.78 billion USD, equal to 58.4% 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 214.2 billion USD, accounting for 59.1% of total investment capital, followed by real estate business with 58.4 billion USD (accounting for 16.1% of total investment capital); electricity production and distribution with 23.65 billion USD (accounting for 6.5% of total investment capital).

- According to investment partners: In December 2019, Honduras, Iceland and Lithuania are 3 partners that have had new investment projects in Vietnam, bringing the total number of countries and territories with valid investment projects in Vietnam to the number of No. 135. In which , the first is South Korea with a total registered capital of 67.71 billion USD (accounting for 18.7% of total investment capital). Japan ranks second with 59.3 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 47.34 billion USD (accounting for 13.1% of total investment capital); followed by Binh Duong with 34.4 billion USD (accounting for 9.5% of total investment capital); Hanoi with 34.1 billion USD (accounting for 9.4% of total investment capital).

1. VIETNAM'S INVESTMENT ABROAD

Generally, in 2019, Vietnam's total outward investment capital was newly granted and increased to 508.14  million USD. In which, 164  projects were granted new investment registration certificates, with a total investment capital of 403.15 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 121.6  million USD, accounting for 23.9% of total investment capital; the agriculture, forestry and fishery sector ranked second with 86.1 million USD and accounted for 16.9% of total investment capital; the field of scientific and technological professional activities ranked 3rd with 70.1 million USD, accounting for 13.8% of the total investment capital. The rest are projects in other fields.

By area: Vietnam has invested in 32 countries and territories. Australia is the leading region in terms of Vietnam's investment capital abroad with 154.6 million USD, accounting for 30.4% of total investment capital. The United States ranks 2nd with 26 projects, with a total investment capital of 93.4 million USD, accounting for 18.4% of the total investment capital. Next are Cambodia, Spain, Singapore, Canada,...
Data sheet: FDI 20.12.2019

 

Department of Foreign Investment