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FDI inflows to Ho Chi Minh City down 16.52%

Hannah Nguyen Hannah Nguyen

ngminhphuong26@gmail.com

June 01, 2021 | 09:28

The inflow of foreign direct investment (FDI) into Ho Chi Minh City surpassed USD 1.34 billion in the first five months of 2021, down 16.52%, reported VNA.

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FDI inflows to Ho Chi Minh City down 16.52%
A corner of Ho Chi Minh City. Photo: VNA

According to the municipal Statistics Office, of the total, USD 378.8 million went to 187 new projects, primarily in the field of commerce (USD 236.3 million) and real estate (USD 125.8 million).

Meanwhile, USD 416 million was added to 42 existing projects.

Foreign investors channelled USD 267.4 million of capital into seven processing and manufacturing projects, USD 85.5 million into 11 science and technology projects, and USD 32.9 million into 15 commercial projects.

Countries posting high additional investment included Japan (USD 270 million), Singapore (USD 72.4 million), and the UK (USD 27 million).

Capital contributions and share purchases in 726 transactions accounted for USD 542.7 million.

In terms of domestic capital attraction, the city licenced the establishment of 14,543 companies with registered capital of VND 245.6 trillion (USD 10.66 billion), up 5.8 % and 36.6% year-on-year.

Long An, HCM City and Can Tho are the biggest recipients of foreign investment inflows in the first five months this year. Total foreign investment inflows to Vietnam picked up 0.8% to USD 14 billion in the first five months this year, reported VGP citing the Ministry of Planning and Investment.

Of the total figure, foreign investors pledged to pour USD 3.35 billion in Long An, accounting for 23.9 percent. It was followed by HCM City (USD 1.34 billion) and Can Tho (USD 1.32 billion).

FDI inflows to Ho Chi Minh City down 16.52%
Source: VGP

In the reviewed period, foreign capital was pumped into 18 economic sectors in the Southeast Asian country, in which manufacturing and processing took the lead with USD 6.14 billion.

The export value of the foreign-invested sector was estimated at USD 97.4 billion, up 37% compared to the same period last year and making up 74.4% of the nation’s total export turnover.

Meanwhile, the sector’s import turnover rose by 39.7% to USD 85.4 billion, accounting for 65.3% of the nation’s import volume.

The ministry also said Singapore was the biggest foreign investors in January-May period, with total registered capital of USD 5.26 billion.

Japan and the Republic of Korea occupied the second and the third places with USD 2.59 billion and USD 1.83 billion, respectively.

As of May 20, Vietnam housed 33,615 valid foreign-invested projects with total registered capital of USD 396.86 billion and the disbursement rate reached 60.5 percent, or USD 240 billion, said the ministry.

According to a report released by the Economist Intelligence Unit (EIU) late last year, Vietnamese success in FDI attraction attributed to the country's 4.5% economic growth in the final quarter of 2020, along with stable industrial production, the increase of the consumer price index, and benefits gained from new-generation free trade agreements (FTAs).

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