Disbursement of foreign direct investment in March reached USD1.39 billion, the highest level since the beginning of the year, according to the Foreign Investment Agency (FIA) of the Ministry of Planning and Investment.
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| A worker of the Taiwan-invested Tung Kuang Industrial Joint Stock Co inspects the quality of aluminium products. Disbursement of foreign direct investment in March reached USD1.39 billion |
The latest amount brought disbursements during the first quarter to a total of USD2.54 billion, an increase of 1.6 percent over the same period of the last year and 22.1 percent of the target set for all of this year, the FIA said.
The first three months, however, have witnessed a slump in newly registered investment. During the period, the nation attracted USD2.37 billion in foreign direct investment (FDI), down 33 percent year-on-year. Only 173 new foreign-invested projects were licensed during the period, worth just over USD2 billion in total, a decrease of 35 percent in capital and 40 percent in the number of projects from the first quarter of last year.
However, in one bright spot, 23 projects were approved to increase their registered capital by a combined USD248 million, compared to just USD5 million worth of capital increase in January and USD81 million in February.
Among major new projects registered during the quarter were a USD1 billion Singapore-invested project to produce solar panels, a USD266 million power plant project, and a USD174 million tourism and shopping complex.
With the large project, Singapore became the leading source of foreign investment during the quarter, accounting for 46.7 percent of total registered capital.
Hong Kong ranked second with USD331.5 million, followed by the British Virgin Islands with USD277.4 million, and South Korea with USD193 million.
During the period, USD1.55 billion or 65 percent of the total registered capital flowed into the processing and manufacturing sectors, making them the most attractive sectors in the eyes of foreign investors. Construction and retail also proved their attraction, gobbling up USD206 million and USD50 million, respectively.
The southern economic hub of Ho Chi Minh City was the top destination for foreign investment, absorbing USD1.1 billion, followed by the central city of Danang with USD364.7 million and the central province of Binh Thuan with USD266 million.
The foreign-invested sector saw an estimated three-month export turnover of USD8.9 billion, up 31.3 percent year-on-year, and accounting for 46.2 percent of the country\'s total export turnover. The sector also posted an export surplus of USD969 million.
