Brief on foreign direct investment of the first four months of 2019

I. Foreign investment in Vietnam

1. FDI attraction in the first four months of 2019

1.1 Performance

Realized capital:

In the first four months of 2019, foreign direct investment projects were estimated to disburse 5.7 billion USD, up 7.5% as compared to the same period in 2018.

Export and import:

Export:Export of foreign investment sector (including crude oil) was 55.42 billion USD, up 4% over the same period in 2018 and accounting for 70.4% of export turnover. Export excluding crude oil was 54.68 billion USD, up 3.9% as compared to the same period in 2018 and accounting for 69.4% of export turnover. In the first 4 months of 2019, the export of the foreign investment sector increased in value but decreased in growth rate as compared to the same period in 2018 (in the first 4 months of 2018, exports including crude oil increased 18.9%; export excluding crude oil increased 20.3%.

Import:Import of the FDI sector was 42.3 billion USD, up 9.3% as compared to the same period in 2018 and capturing 58% of import turnover. Generally, in the first four months of 2019, the trade surplus of the FDI sector was 11.17 billion USD including crude oil and 10.5 billion USD excluding crude oil.

1.2 Granting of investment certificate

As of April 20th, 2019, the total newly and additionally registered capital and capital contributed and shares purchased by foreign investors was 14.59 billion USD, increased 81% as compared to the same period in 2018. Achieved a record of the value of registered investment capital for the first 4 months in the last 4 years (in 2016 reached 7.5 billion USD, in 2017 reached 10.6 billion USD and in 2018 reached 8 billion USD). In addition to the decrease in capital adjustment as compared to the same period, investment capital still increased sharply in new project registration and capital contribution and share purchase. In which:

New project registration: As of April 20th, 2019, the whole country had 1082 new projects granted investment certificate with a total newly registered capital of 5.34 billion USD, up 50.4% as compared to the same period in 2018.

Capital adjustment: There were 395 times of projects registered to adjust capital with total additionally registered capital of 2.11 billion USD, equaling 94% as compared to the same period in 2018.

Capital contribution and share purchase: Also in the first four months of 2019, the whole country had 1.653 times of capital contribution and share purchase by foreign investors with a total value of the capital contribution of 5.68 billion USD, increased 3 times as compared to the same period in 2018 and capturing 52.6% of the total registered capital.

By investment field:

In the first four months of 2019, 19 fields were invested by foreign investors, in which, the investment mostly focused on the processing and manufacturing sector with the total capital of nearly 10.5 billion USD, accounting for nearly 72% of the total registered investment capital. Real estate business ranked second with total investment capital of 1.1 billion USD, accounting for 7.5% of total registered investment capital. Wholesale and retail field ranked third with a total registered investment capital of 742.7 million USD, capturing 5% of total registered investment capital...

By investors

In the first four months of 2019, there were 80 countries and territories having investment projects in Vietnam. HongKong ranked first with total investment capital of 4.7 billion USD, making up 32.5% of total investment capital; Korea ranked second with total registered investment capital of 1.98 billion USD, accounting for 13.6% of total investment capital into Vietnam; Singapore ranked third with a total registered investment capital of 1.87 billion USD, capturing 12.8% of total investment capital.

By investment area

In the first four months of 2019, 53 provinces and cities were invested by foreign investors, in which Hanoi attracted the most of FDI with a total registered capital of more than 4.47 billion USD, capturing 30.6% of total investment capital. Ho Chi Minh City ranked second with a total registered capital of 2.37 billion USD, accounting for 16.3% of total investment capital. Binh Duong ranked third with a total registered capital of more than 1 billion USD, accounting for 7% of total investment capital.

Some large projects inthe first four months of2019 are:

- Capital contribution and share purchase project of Beerco Limited (HongKong) in Vietnam Beverage Limited Company, with the total value of the capital contribution of 3.85 billion USD, with the main goal of producing beer and malt for brewing beer in Hanoi.

- ACTR's all steel Radian tire manufacturing project with a total registered investment capital of 280 million USD, invested by Chinese investors in Tay Ninh with the goal of producing TBR all-steel tires.

- Electronic equipment, network equipment, and multimedia audio products manufacturing factory project, with the total registered capital of 260 million USD, invested by Goertek (HongKong) co., Limited in Bac Ninh.

- Hoa Hoi solar power plant project, with the total registered capital of 216.7 million USD, invested by Thai investors in Phu Yen with the goal of ensuring energy security, creating jobs and stable income for local workers, increasing budget revenue, creating a driving force for local socio-economic development.

- Vietnam’s Advance Tire co., Limited project, with the total registered capital of 214.4 million USD, invested by Guizhou Advance Type Investment co., Ltd (China) with the objective of producing and consuming tires, rubber, and related products in Tien Giang.

- Vinhtex project with the total registered investment capital of 200 million USD, invested by Royal Pagoda Private Limited (Singapore) with the goal of producing fabric and dyeing knitting fabric in Nghe An.

2. FDI accumulation until April 2019

Accumulated to April 20th, 2019, the whole country has 28.398 valid projects with a total registered capital of nearly 349 billion USD. The accumulated realized capital of foreign direct investment projects was estimated at 197 billion USD, equaling 56.4% of total valid registered capital.

- By investment field:The foreign investors have invested in 19 out of 21 branches in the national economic classification system, in which, processing and manufacturing sector accounted for the highest proportion with nearly 203 billion USD, making up 58.1% of total investment capital, followed by real estate business with 58.3 billion USD (accounting for 16.7% of total investment capital), production and distribution of electricity, gas and water with 23.3 billion USD (making up 6.7% of total investment capital).

- By investors:There were 131 countries and territories having valid investment projects in Vietnam. Korea ranked first with a total registered capital of 64.3 billion USD (accounting for 18.4% of total investment capital). Japan ranked second with 57.3 billion USD (capturing 16.4% of total investment capital), followed successively by Singapore and Taiwan, British Virgin Islands, Hong Kong.

- By investment area: FDI has been present in all 63 provinces and cities of the country, in which Ho Chi Minh City continued to rank first in FDI attraction with 45.4 billion USD (making up 13% of the total investment capital), followed by Hanoi with 33.1 billion USD (accounting for 9.5% of total investment capital), Binh Duong with 32.5 billion USD (capturing 9.3% of total investment capital).

II. Vietnam's investment abroad

In the first 4 months of 2019, the total newly and additionally registered investment capital abroad from Vietnam was 149.5 million USD. In which there were 44 projects newly granted certificates of investment registration abroad with a total investment capital of nearly 96 million USD from Vietnam. There was 09 project adjusted capital with a total additional investment capital of 53.5 million USD from Vietnam.

By investment field: The fields of professional, scientific and technological activities ranked first in Vietnam’s investment capital aboard with the total newly and additionally registered capital of 81.7 million USD, accounting for 54.7% of total investment capital; banking ranked second with 36 million USD and accounting for 24.1% of total investment capital; wholesale and retail ranked third with 16.4 million USD, accounting for 11% of total investment capital. The other projects belong to others field.

By investment area: In the first four months of 2019, there were 23 countries and territories received investments from Vietnam. With a large-scale project of 59.8 million USD, Spain is leading in receiving Vietnam's investment abroad, accounting for 40% of the total investment capital. Cambodia ranked second with the total newly and additionally registered capital of 37.9 million USD, accounting for 25.3% of total investment capital. Malaysia ranked third with a total investment capital of nearly 14 million USD, capturing 9.3% of total investment capital, followed by America, South Africa, Canada./.

Ministry of Planning and Investment