Foreign investors' confidence in Vietnam consolidated: MPI

WVR/VNA - Vietnam’s economic prospects have helped consolidate the confidence of foreign firms in the country, as reflected through their investment of 6.17 billion USD in the first quarter of this year, up 13.4% year-on-year.
Foreign investors' confidence in Vietnam consolidated: MPI
Foreign investors' confidence in Vietnam consolidated: Workers at a semiconductor factory located in Ho Chi Minh City. (Photo: VNA)

Of the sum, newly registered capital stood at 4.77 billion USD, a rise of 57.9% from the corresponding time last year. Meanwhile, 934.6 million USD was added to 248 existing projects, and 466.2 million USD earmarked for stake purchase and capital contribution. These are down 22.6% and 61.7% in value, respectively, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

The disbursed foreign investment rose by 7.1% in the first quarter to 4.63 billion USD, a sign that the disbursement will continue the positive trend, the Ágency said.

Foreign investors poured capital into 17 out of the 21 economic sectors, among which the manufacturing and processing industry took the lead with a total registered capital of 3.93 billion USD, a decrease of 1.3% from the same period last year.

The real estate sector came second with a total registered capital of 1.58 billion USD, 2.1 times the figure of the same period last year, followed by the wholesale and retail industry and science and technology with investment of 224.8 million USD and 190.2 million USD, respectively.

The foreign investment influx came from 62 countries and territories. Singapore was the biggest investor in Vietnam in the period with a total registered capital of over 2.55 billion USD, up by 51.3%, followed by Hong Kong (China) with 1.05 billion USD, 2.3 times higher.

The capital city of Hanoi was the top FDI destination with an influx of 970.8 million USD, rising by 6.1 times over the same period last year, followed by the northern province of Bac Ninh with 745.2 million USD.

Nestle Vietnam, which has been operating in Vietnam for nearly 30 years, has earmarked an additional 100 million USD to double the processing capacity of high quality coffee lines of its factory in Dong Nai, helping the southern province enter the list of Vietnam's top 10 localities in FDI attraction in the period.

Binu Jacob, General Director of Nestlé Vietnam, said through the project, the firm hopes to generate more job opportunities and expand its long-term operation in Vietnam.

Director of the Department of Industry and Construction Statistics under the General Statistics Office Phi Thi Huong Nga called FDI attraction a bright spot that contributed to the country’s economic achievements in the three months, marking a good start for the year.

However, foreign investors shared the view that apart from political stability and improved human resources, limitations still remain such as cumbersome administrative procedures, volatile investment attraction policies, and an incomplete supply chain.

Given this, Prof. Dr. Nguyen Mai, Chairman of the Vietnam's Association of Foreign Invested Enterprises (VAFIE), suggested that the top priority should be given to perfecting institutions and legal regulations.

Ranjit Thambyrajah, Chairman and CEO of Acuity Funding, said Vietnam needs to invest further in education and training to provide industries with a competent workforce.

At the same time, the country should build fully integrated and energy-neutral industrial parks suitable for the future of manufacturing, he said.

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(Source: WVR/VNA)