The disbursement of FDI capital in 2016 also represented a record high, surpassed that in 2015. It marked the third consecutive year-on-year increase of FDI disbursement.
According to the FIA’s report, the number of projects granted licenses in the year to December 26 was 2,556 with a total registered capital of 15.1 billion USD, an increase of 27 percent in project number compared with the same period last year but equal to just 97.5 percent of registeredcapital in 2015.
In the same reviewed period, 1,225 projects asked to add 5.76 billion to their capital. Meanwhile, foreign investors purchased more than 3.4 billion USD stakes in 2,547 firms and economic organizations, FIA added. In total, FDI capital inflow in 2016 reached 24.4 billion USD.
Regarding the reduction of registered capital, Mr. Nguyen Mai, Chairperson of Vietnam's Association of Foreign Invested Enterprises, said that this matter should not be a major concern as it has always only remained a minor commitment. It is a good sign showing that FDI capital has brought about more practical benefits.
Registered capital is commitments of investors to allocating money. Hence, the figure of registered capital is only on paper with little impacts on the economy. According to Mr.Nguyen Mai, registered capital in some years has even reached 72 billion USD but it was far away from the actual FDI disbursement.
Mr.Dang Xuan Quang, Deputy Head of the FIA affirmed that the increased disbursement showed that FDI flows into Vietnam have developed sustainably, even recording breakthroughs.
The halted registered capital also proved that Vietnamese Government has shifted attracting FDI flows from quantity to quality, with a focus on hi-tech and clean technologies, he underlined. To date, the reality has shown that Vietnam has retained investors with long-term investment strategies in the country.
The FIA’s report showed that the FDI sector posted a positive export value (including crude oil) of 125.9 billion USD in 2016, a year-on-year increase of 10.2 percent. Non-oil export value was estimated at 123.55 billion USD, up 11.8 percent compared with last year.
In 2016, FDI investment was poured into 19 sectors. The most attractive sector for FDI is the manufacturing and processing sector with 15.53 billion USD or 63.7 percent. The automobile and motorbike wholesale, retail and repair came to next with 1.9 billion USD or 7.79 percent; followed by the real estate with 1.68 billion or 6.9 percent.
Among 95 countries and territories investing in Vietnam in 2016, the Republic of Korea was on the top in the term of capital with 7 billion USD, equal to 28.8 per cent of the total. Japan climbed into second position with 2.58 billion or 10.62 percent, followed by Singapore with 2.41 billion USD or 9.9 percent.
Ho Chi Minh City was named as the most attractive destination for FDI in 2016. The city absorbed 3.42 billion USD FDI or 14 per cent of the total. While the northern port city of Hai Phong was ranked second with 2.98 billion USD or 12.26 percent. Ha Noi, Binh Duong and Dong Naiprovince followed with 2.79 billion USD, 2.36 billion USD and 2.23 billion USD, respectively.
LG Display Hai Phong project of the RoK’s LG Display Co Ltd with a total investment of 1.5 billion USD was the most remarkable new licensed FDI projects in 2016. Other noticeable new licensed FDI projects include the 550 USD million LG Innotek Hai Phong, invested by LG Innotek(the RoK), and the Dam Nha Mac sea port-industrial park complex in Quang Ninh worth 315.46 billion USD invested by CDC (the Cayman Islands).
