FDI expected to hit $20 billion by end of year (29-10-2009)

Foreign direct investment (FDI) inflow in the first 10 months of the year reached US$18.93 billion and is expected to top $20 billion this year, according to the Ministry of Planning and Investment.

Of the $18.93 billion, $14.05 billion was capital for 658 new projects and the remainder was replenishments for 179 existing projects.

Although investment in new projects was 25 per cent less than the same period last year, it was impressive in the context of the global economic recession.

Most FDI has flowed into three sectors, with the hotel and restaurant businesses attracting the largest with $8.7 billion in both new and existing projects, followed by the property sector with $5.67 billion; and processing and manufacturing with $2.65 billion.

Capital disbursement in FDI projects reached about $8 billion in the first 10 months of the year, equal to 87.9 per cent of the same period last year.

As of October 20, the country had 10,805 FDI operational projects with a total registered capital of $174.7 billion, according to the agency.

Of these, processing and manufacturing accounted for the largest number with 6,709 projects having a total registered capital of $88.45 billion, followed by the property sector with 312 projects worth $38.3 billion, and the hotel and restaurant sector with 253 projects worth $14.9 billion.

The top five investors in Viet Nam are Taiwan with $21.2 billion, followed by South Korea with $20.4 billion, Malaysia with $18.06 billion, Japan with $17.68 billion and Singapore with $16.92 billion.

HCM City continues to lead the country in attracting FDI, with 3,092 ongoing projects worth $27.14 billion, followed by Ba Ria–Vung Tau Province which has 210 projects with a total registered capital of 23.56 billion.

(Source: VNS)