FDI Status in 11 Months of 2016

Vietnam company formation

Vietnam has become an ideal destination for foreign investors from many countries to come and invest in Vietnam. Generally in the first 11 months of 2016, total newly registered and additional capital reach 18.103 billion USD, equivalent to 89.5% compared with the same period in 2015.

Operational status:

Implemented capital:

As of November 20th 2016, it is estimated that the foreign direct investment (FDI) projects have disbursed 14.3 billion USD, increased by 8.3% over the same period in 2015.

Exports and imports:

Exports of the foreign investment sector (including crude oil) in the first 11 months of 2016 reached 114.076 billion USD, increased by 8.6% over the same period in 2015 and accounted for 71.5% of export turnover in 2015. Exports excluding crude oil in the first 11 months of 2016 reached 111.979 billion USD, increasing by 10.3% over the same period in 2015 and accounted for 70.2% of export turnover.

Imports of the foreign investment sector in the first 11 months of 2016 reached 92.831 billion USD, increased by 3.6% over the same period in 2015 and accounted for 59.2% of import turnover. Generally in the first 11 months of 2016, foreign investment sector has export surplus 21.245 billion USD including crude oil and 19.148 billion USD excluding crude oil.

The investment certificate granting status:

According to the data from the information system on foreign investments, as of November 20th 2016, there were 2,240 new projects were granted the investment certificates with total registered capital of 13.028 billion USD, equal 96.1% over the same period in 2015. Till November 20th 2016, there were 1,075 projects register to adjust the capital with the total registered additional capital of 5.075 billion USD, increased by 76.1% over the same period in 2015.

Generally in the first 11 months of 2016, the total newly registered and additional capital reached 18.103 billion USD, equal 89.5% over the same period in 2015.

According to the investment areas:

In the first 11 months of 2016, foreign investors have invested in 19 areas, in which the processing and manufacturing industries are areas attracting more attention of foreign investors with 907 newly registered investment projects and 766 adjusting capital projects, the total newly registered and additional capital reached 13.41 billion US dollars, accounting for 74.1% of total registered capital in 11 months.

The real estate sector ranks 2nd with 49 newly licensed projects, with the total newly registered and additional capital reached 740.93 million USD, accounting for 4.1% of total registered capital. The professional activities, scientific and technological sectors ranks 3rdwith 684.84 million USD, accounting for 3.8% of total investment capital.

According to the investment partners:

In the first 11 months of 2016, there are 68 countries and territories having investment projects in Vietnam. Korea leds with total newly registered and additional capital of 5.29 billion USD, accounting for 29.2% of total investment capital in Vietnam; Singapore ranked 2ndwith total newly registered and additional capital of 2.05 billion USD, accounting for 11.3% of total registered capital; Japan ranked 3rd with total newly registered and additional capital of 1.95 billion USD, accounting for 10.8% of total investment capital.

According to the investment location:

In the first 11 months of 2016, foreign investors have invested in 54 provinces and cities. In which Hai Phong attracted the largest foreign investment with 45 newly licensed projects and 35 projects register to adjust capital. The total newly registered and additional capital reached 2.74 billion USD, accounting for 15.2% of total investment capital.

Binh Duong ranked 2nd with total newly registered and additional capital reached 1.93 billion USD, accounting for 10.7%. Followed by Dong Nai, Hanoi, Ho Chi Minh City with total newly registered and additional capital reached 1.87 billion USD, 1.84 billion USD and 1.32 billion USD respectively.

Some large projects that are licensed in the first 11 months of 2016:

– LG Display Hai Phong project, licensed on April 15th 2016, the total registered capital is 1.5 billion USD, which is invested by LG Display Co., Ltd (Korea) to manufacture and produce plastic OLED display products for mobile devices such as cell phones, smart watches, tablets…

– LG Innotek plant project in Hai Phong, the total registered investment capital is 550 million USD, invested by LG Innotek Co., Ltd. (Korea) to produce camera module.

– The project to develop the port and industrial parks complexes in Dam Nha Mac area, Quang Yen Town, Quang Ninh province, invested by CDC International Corporation (Cayman Islands) with total registered investment capital of 315.46 million USD.

– Amata Long Thanh City project, with total investment capital of 309.3 million USD, invested by Thailand investors to build urban area in Dong Nai.

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