Positive sign in FDI attraction

In addition, 137 projects got additional capital valuing US$898.3 million. Total newly-registered and additional capital amounted over US$2.8 billion, posting a year-on-year growth of 135%.

FDI by sectors

FDI focused on the processing and manufacturing industries with total capital of US$1.9 billion (accounting for 71.2%); arts and entertainment with US$210.6 million (7.5%); others with US$597.8 million (21.3%). According to the latest report of Vietnam GSO on business trend of processing and manufacturing enterprises. About 90.8% of respondents forecasted that export contracts would rise in 2016. A majority of surveyed processing and manufacturing enterprises said that the business environment was improved. Over 80% of enterprises assessed that business trend in Q1, 2016 would get better or more stable. Meanwhile, 17.7% of enterprises were pessimistic about business prospects in 2016.

FDI by localities

There were 32 provinces and cities in the whole country receiving FDI project investment in the two first months of 2016. Of which, the capital city of Hanoi attracted the largest amount of FDI with US$242.4 million (12.7% of total FDI to Vietnam in the same period). This achievement comes from big efforts of the capital city in attracting FDI. Hanoi city carried out effectively solutions to improve business and investment environment in 2015. Particularly, the municipal Trade, Tourism and Investment Promotion Centre has officially taken into operation. Hanoi organized training courses on international integration, announced the list of groups calling for investment projects and continued to implement the connection programme between banks and enterprises. In 2016 Hanoi will concentrate on promoting administrative reforms and improving the processes of planning, investment and building to support businesses. The top priority is on reform in areas of planning, investment, land, building, certificate of business registration, investment licenses. According to the plan on key tasks for its economic development in 2016 approved by the Hanoi People’s Committee, in the period of 2016-2020, the city will focus on attracting investments in infrastructure construction development, establishment of hi-tech and biological parks, as well as supporting industries. Other sectors including hi-tech agriculture, production of new materials, trade and tourism, health care, training and education will be prioritized for seeking investment in the coming years.

Other provinces in the North region accounted for big share of FDI including Bac Giang with US$206.1 million (10.8%) and Bac Ninh with US$200.6 million (10.5%) and Ha Tinh. In the Central region, Ha Tinh province absorbed 139.1 million, accounging for 7%. In the South region, Ho Chi Minh City attracted 155.9 million, accounting for 8.2%; Ba Ria - Vung Tau province with 157.1 million, accounting for 8.2%; Dong Nai with 142.7 million, accounting for 7.5%; Binh Duong with 129.7 million, accounting for 6.8%.

FDI by countries

Of 31 countries having new FDI projects in Vietnam, Singapore was the biggest investor by pouring US$435.2 million (22.8%). Malaysia and the Republic of Korea invested US$233.2 million (12.2%) and US$202.4 million (10.6%), respectively.