As per the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment (MOPI), Vietnam’s manufacturing and processing sector is very attractive to investors from Asean. Currently, Asean investors poured capital into 1,176 projects in this field with the total registered capital of $27.68 billion.
As of July 20, Asean region had 3,040 effective investment projects with the total registered capital of $64.475 billion. In January-July alone, Vietnam attracted an additional of 181 new projects and 79 capital increase projects from Asean region with the total investment of $2.492 billion, accounting for 19.26 percent of the total investment in Vietnam.
Apart from the processing and manufacturing sector, investors from Asean region are also interested in some other sectors such as real estate business (total registered capital of $19 billion), accounting for 29.4 percent of the total investment; the production and distribution of electricity, gas, water, air conditioning and construction (with a total investment of $3.37 billion and $2.9 billion respectively), reckoning for 5.2 percent and 4.5 percent of the total investment in Vietnam.
Singapore is the leading nation in Asean in the investment in Vietnam, with 1,663 registered projects and total capital of $38.1 billion, followed by Malaysia with $13.8 billion, Thailand with $9.4 billion. Especially, recently, Singapore and Thailand are two countries that have continually increased investment in Vietnam.
MOPI highly appreciates the project of Asean investors in Vietnam, especially the projects of Singapore investors. Singaporean businesses not only comply with the law of Vietnam but Vietnam – Singapore Industrial Park projects (VSIP) also have great significant to our country’s socio-economic development, strengthening cooperative relations between the two countries.
However, MOPI said, one of the shortcomings of Asean investors in Vietnam market is they only concentrate in provinces that have favourable conditions in terms of infrastructure such as HCM City, Hanoi, Binh Duong, Dong Nai, etc. This is the point that needs to be overcome in the near future.
HCM City and Hanoi are the two provinces that attract the largest FDI from Asean with the registered capital of $17.33 billion and $8.39 billion respectively, accounting for 26.8 percent and 13 percent of the region’s total investment in Vietnam.
Source: Bao Cong Thuong
Key words : Manufacturing, and processing sector, attracts, Asean investors.
