FDI slides to four-year low

Vietnam’s foreign direct investment (FDI) fell in the first six months of the year to its lowest level in more than four years, in the latest sign of an increasingly cautious outlook from foreign business.

Vietnam’s foreign direct investment (FDI) fell in the first six months of the year to its lowest level in more than four years, in the latest sign of an increasingly cautious outlook from foreign business.

  

While foreign-investment figures tend to fluctuate, the data released recently by Vietnam’s Ministry of Planning and Investment dovetails with growing weakness in other sectors of the national economy.

Newly registered FDI levels during the January-June period were valued at US$3.83 billion, which calculates to 79% of the amount reported for the first six months of last year.

Meanwhile supplementary capital for pre-existing investments as of January 1 dropped to US$1.65 billion, which is equivalent to 83% of the value for last year’s six month period.

In total there were 757 new and 281 expanded investments registered for the six-month period.

Minister of Planning and Investment Bui Quang Vinh said it is going to be a daunting challenge for the nation to achieve the FDI target of US$23 billion for 2015 in light of the newly released figures.