As of October 20th, 2020, the total newly registered capital, adjusted capital and capital contribution or share purchase by foreign investors reached 23.48 billion USD, equaling 80.6% compared to the same period last year. Capital generated by FDI projects was estimated at 15.8 billion USD, or 97.5% over the same period last year.
Accumulated as of October 20th, 2020, the whole country had 32,777 valid projects with total registered capital of 381.2 billion USD. The accumulated realized capital of foreign direct investment projects was estimated at 227.68 billion USD, equaling 59.9% total valid registered investment capital.
Details are as follows:
I. FDI INFLOWS
1. FDI attraction in the first 10 months of 2020
1.1. FDI performance:
Realized capital:
As of October 20th, 2020, foreign direct investment projects were estimated to disburse 15.8 billion, or 97.5% compared with the same period last year.
Import and export performance:
Export: Export turnover of the foreign investment sector continued to decrease in ten months. Export (including crude oil) reached 147.97 billion USD, equaling 97.6% over the same period last year, accounting for 64.7% of export turnover. Export excluding crude oil was 146.52 billion USD, equaling 95.7% over the same period last year, accounting for 64.4% of the country's export turnover in the ten months of 2020.
Imports: Imports of foreign investment sector reached nearly 117.56 billion, or 97% over the same period last year and accounting for 55.8% of the country's import turnover.
Despite a decrease compared to the same period last year, in the first 10 months of 2020, the FDI sector still saw a trade surplus of 30.4 billion USD including crude oil and a trade surplus of 30 billion USD excluding crude oil, offsetting the trade deficit of 12.2 billion USD of the domestic sector, helping the country to gain a trade surplus of 18.2 billion USD.
1.2. Investment registration
As of October 20th, 2020, total newly registered capital, adjusted capital and capital contribution or share purchase by foreign investors reached 23.48 billion USD, or 80.6% compared to the same period last year.
Of which:
Newly registered capital: There were 2,100 new projects granted with investment certificates (a year-on-year decrease of 32.1%). Total registered capital reached 11.66 billion USD (a year-on-year decrease of 9.1%).
Adjusted capital: There were 907 times of projects registered for adjustment of investment capital (a year-on-year decrease of 20.8%). Total additional registered capital reached over 5.71 billion USD (up by 4.4% compared with the same period last year). Adjusted capital in 10 months increased thanks to the capital expansion of Vietnam Southern Petrochemical Complex Project in Ba Ria - Vung Tau (Thailand) by 1,386 billion USD and that of the project of West of West Lake Urban Residence Centre (South Korea) by 774 million USD.
Capital contribution and share purchase: There were 5,451 times of capital contribution and share purchase by foreign investors (a year-on-year fall of 27.4%). The total value of capital contribution was worth 6.11 billion USD (equal to 43.5% compared to same period last year). The proportion of capital contribution and share purchase in the total investment capital also decreased significantly compared to the same period last year (from nearly 37.1% in the 8 months of 2019 to 26% in the 10 months of 2020).
By sector:
Foreign investors have invested in 18 sectors, of which the processing and manufacturing led with total investment capital of almost 10.7 billion USD, accounting for 45.7% of the total registered investment capital. Electricity production and distribution ranked second with investment capital of over 4.8 billion USD, accounting for 20.5% of total registered investment capital. It is followed by the real estate business, wholesale and retail with the total registered capital of nearly 3.5 billion USD and 1.4 billion USD. The rest are other sectors.
By counterpart:
There are 109 countries and territories investing in Vietnam in 10 months. Singapore led the list with total investment capital of 7.51 billion USD, accounting for 31.9% of total investment capital in Vietnam; South Korea ranked second with investment of 3.42 billion USD, accounting for 14.6% of total investment capital. China ranked third with registered investment capital of 2.17 billion USD, accounting for 9.2% of total investment capital. Next were Japan, Thailand, Taiwan, etc.
In terms of the number of new projects, Korea ranked first (528 projects); China ranked second (294 projects); Japan ranked third (226 projects); followed by Hongkong (164 projects).
By location:
The foreign investors have invested in 59 provinces and cities nationwide in 10 months. Bac Lieu continued to lead the list with a large project worth 4 billion USD, accounting for 17% of total registered investment capital. Ho Chi Minh City ranked second with total registered capital of 3.4 billion USD, accounting for nearly 14.6% of total investment capital (of which investment was mainly in the form of capital contribution and share purchase, accounting for 75.7% of the City’s total registered investment capital). Hanoi ranked third with 3.13 billion USD, accounting for 13.3% of total investment capital (of which investment in the form of project expansion and capital contribution and share purchase accounted for 39.8% and 39.3% of the city’s total investment capital, respectively). Next are Ba Ria - Vung Tau, Binh Duong, Hai Phong, and so on.
Regarding the number of new projects, Ho Chi Minh City led the list (776 projects); Hanoi ranked second (438 projects); Bac Ninh ranked third (125 projects).
Several major projects in September and the first 10 months of 2020:
(1) Liquefied Natural Gas (LNG) Plant Project under the operation of Bac Lieu LNG Thermal Power Centre (invested by Singaporean investors) having total registered investment capital of 4 billion USD with the goal of producing electricity from liquefied natural gas (granted with a certificate of competency on January 16th, 2020).
(2) The South Vietnam Petrochemical Complex Project (invested by Thai investors) in Ba Ria - Vung Tau with an increase of adjusted investment capital by 1,386 billion USD (adjusted Investment Certificate dated April 18th, 2020).
(3) Project of West of West Lake Urban Residence Centre (invested by South Korean investors) with expanded investment capital by 774 million USD (adjusted Investment Certificate issued on June 29th, 2020).
(4) Radian Jinyu Tire Manufacturing Plant Project (Vietnam) with total investment of 300 million USD aimed at producing full steel TBR tires invested by Chinese investors in Tay Ninh (granted with a certificate of investment on January 1st, 2020).
(5) Victory Project - A factory manufacturing high-tech electronic products in Dong Van, Ha Nam (invested by Taiwanese investors), worth 273 million USD with the goal of manufacturing and assembling electronic computer and computer auxiliary equipment, production of civil electronic audio and visual equipment (granted with a certificate of competency on April 1st, 2020)
2. Evaluation of the FDI performance in October and the first 10 months of 2020
- Production and business activities were affected by the Covid-19 pandemic. Realized investment capital of FDI projects in 10 months continued to decrease compared to the same period, but the stagnation was lower. Many foreign-invested enterprises are gradually recovering, maintaining good business and production activities, creating momentum for faster growth in the last months of 2020.
- There are still a lot of foreign investors interested, trusting and have the need to invest in Vietnam. But due to the effects of the Covid-19, investors’ travel as well as new investment decisions and the expansion of the scale of FDI projects continue to be affected. The number of new projects, capital adjustment and capital contribution and share purchase by foreign investors decreased compared to the same period last year. However, in the context of a very strong decline in global investment due to the effects of the Covid-19, this result is better than many other countries, showing the attractiveness of Vietnam in the eyes of international investors.
- Although the impact of the epidemic is extremely heavy on the economies of many countries, the balance of trade in goods in the first 10 months of 2020 in Vietnam continued to have a trade surplus of 18.2 billion USD, of which foreign invested sector (including crude oil) saw a trade surplus of 30.4 billion USD; trade deficit of the domestic economic sector was 12.2 billion USD.
3. Accumulated foreign investment as of October 20th, 2020
Accumulated as of October 20th, 2020, the whole country had 32,777 valid projects with total registered capital of nearly 380 billion USD. The accumulated realized capital of FDI projects was estimated at 227.68 billion USD, equaling 59.9% of the total valid registered capital.
- By sector: foreign investors have invested in 19/21 sectors in the national economic classification system, of which the processing and manufacturing sector accounted for the highest proportion with 223.6 billion USD, accounting for 58.9% of total investment capital, followed by real estate business with 59.9 billion USD (accounting for 15.8% of total investment capital); electricity production and distribution with 28.4 billion (accounting for 7.5% of total investment).
- By counterpart: In October, 2020, 138 countries and territories have valid investment projects in Vietnam. Of which, South Korea ranked first with registered capital of nearly 70.14 billion USD (accounting for 18.5% of total investment). Japan ranked second with nearly 59.9 billion USD (capturing 15.8% of total investment capital), followed by Singapore, Taiwan, and Hong Kong.
- By location: FDI has been present in all 63 provinces and cities nationwide, of which Ho Chi Minh City is still the leading province in attracting foreign investment with 47.9 billion (accounting for 12.6% total investment); followed by Hanoi with 35.9 billion USD (accounting for 9.4% of total investment capital); Binh Duong with over 35.2 billion USD (accounting for 9.3% of total investment capital).
II. FDI OUTFLOWS
In the first 10 months of 2020, Vietnam’s total newly registered investment and expanded investment outflows were 478.26 million USD, up by 16.1% over the same period last year. Of which, 107 projects were newly registered with total investment of 314.5 million USD (a year-on-year increase of 0.8%) and 28 times of investment adjustment with capital gain of 163.8 million USD (a rise of 63.8% compared to the same period last year).
In October, 2020 only, 11 projects were granted with new investment registration certificates with the total investment outflow of 46.1 million USD (a year-on-year slight rise of 0.4%).
Vietnamese investors have invested in 13 sectors abroad. Of which, processing and manufacturing led the list with 10 new projects and 7 times of capital adjustment obtaining registered capital of 228.1 million USD, accounting for 47.7% of total investment capital. Finance, banking and insurance ranked second with 68.2 million USD, accounting for 14.3%; followed by professional, scientific and technical activities and wholesale and retail trade.
There are 24 countries and territories receiving investment from Vietnam in the first 10 months of 2020. Leading is Australia with 13 new investment projects and 02 expanded projects worth 101.8 million USD, accounting for 21.3% of the total investment. Germany ranked second with 92.6 million USD, accounting for 19.4%. Followed by Laos, United States, etc.
Ministry of Planning and Investment