Processing, manufacturing industry attractive for foreign investors
2018-06-15 16:33:05 / Vietnam PrintPack
The processing and manufacturing industry has been the most attractive sector for foreign investors this year, according to the Foreign Investment Agency under the Ministry of Planning and Investment.
The agency announced the sector lured 5.18 billion USD of a total 9.9 billion USD, or 52.3 percent of foreign direct investment (FDI), the country attracted.
Real estate ranked second with 1.07 billion USD, while the retail and wholesale sector attracted 1.02 billion USD.
Although the FDI in five months of this year was equivalent to only 81.6 percent of that in the same period last year, experts said FDI quality was higher.
Notably, LG Innotek added 501 million USD to its factory in Hai Phong, raising total investment in the project to 1.05 billion USD, while Regina Miracle International Vietnam injected an additional 260 million USD to its sportswear factory.
Economists said that the increase of investment in projects in equipment and garment will bring more opportunities for domestic enterprises to learn from FDI firms and take advantage of their strengths. This is also what Vietnamese businesses need to do to enhance their competitiveness and engage deeper into global supply chains.
Nguyen Van Toan, Vice President of the Vietnam Association of Foreign Invested Enterprises said that since the beginning of this year, Vietnam saw lower FDI compared to 2017. But Toan held that one giant project will change that situation.
Many other economists asserted that the building of a strategy to lure FDI with a focus on high quality investment influenced the statistics.
FDI projects have been chosen more carefully to suit specific localities and optimise their effectiveness and added value.
According to the Foreign Investment Agency, the change has slowed FDI flow into Vietnam, but improved investment quality.
So far this year, 86 countries and territories have invested in Vietnam, led by the Republic of Korea with 2.63 billion USD, accounting for 26.5 percent of total FDI, followed by Japan with 1.52 billion USD and Singapore with 1.11 billion USD.
Ho Chi Minh City has been the most attractive destination out of 53 cities and provinces in FDI attraction. The city lured 2.39 billion USD, or 24.2 percent of total investment. Hai Phong ranked second with 1.07 billion USD, followed by Hanoi with 835.3 million USD.
Read more: https://en.vietnamplus.vn/processing-manufacturing-industry-attractive-for-foreign-investors/132523.vnp
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