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Korea and Hong Kong are largest investors in Vietnam market

Tue, 27 May 2014. Last updated Thu, 25 Jun 2015 08:43

Since early this year, South Korea and Hong Kong have invested in more than 250 projects including new projects and refinancing ones in Vietnam market. The total value of investment reaches nearly $ 2 billion.

According to the data from the Department of Foreign Investment under the Ministry of Planning and Investment, from the beginning of the year to May 20th 2014, Vietnam licensed 500 FDI projects (foreign direct investment) with a total registered capital of nearly $ 3.7 billion. Plus with increased capital, Vietnam has attracted $ 5.5 billion of FDI capital. However, this amount is decreasing 20 percent compared to that of the previous year.

In response to a recent interview, Mr. Bui Quang Vinh, the Minister of Planning and Investment has stated that the decline in the FDI capital is due to the shortage of large projects as in 2013. However, he also confirmed that the investment in Vietnam in 2014 will not decrease because a number of major projects are in negotiation process to conclude.

 

A Hong Kong factory in Vietnam

 

Fields of processing and manufacturing industry continue to attract attention of foreign investors with a capital up to $ 3.9 billion accounting for 71% of the total newly registered capital in the first 5 months of the year. Next to is the construction and real estate sector with over $ 860 million accounting for 15%.

South Korea is now the largest investors among 38 countries and territories investing in Vietnam market. Investment from South Korea accounts for nearly a quarter of the total investment capital attracted from the beginning of the year with the specific number up to $ 1.3 billion. Hong Kong, the Special Administrative Region of China, ranks second with practically $ 630 million, surpassing Japan with $ 590 million. In previous months, the project of Texhong Hai Ha industrial park of Hong Kong investors worth $ 215 million has been licensed in Quang Ninh Province. Binh Duong is the province attracting most foreign investment. Ho Chi Minh City ranks second and Dong Nai ranks third.

 

Sam Sung opens new factory in Vietnam

 

The disbursement of FDI projects is growing. In the first 5 months of the year, $ 4.6 billion has been disbursed, increasing 0.4% compared to the same period of last year. FDI projects are playing a leading role in economic growth of Vietnam with the trade surplus of $ 4.5 billion.

The Ministry of Planning and Investment has recently required provinces and cities to report on large-scale FDI projects in order to solve difficulties for foreign enterprises. Projects required to report are those with registered capital from $ 100 million or more or using 50 hectares of land, especially projects which have difficulty in policies of tax, customs, labor, and land.