Foreign investment surges by over half in Jan-Jun

Total fresh foreign investment approvals in the country in the year’s first half have soared 54.8% to over US$19.2 billion, with Japan emerging as the biggest foreign investor, according to the Ministry of Planning and Investment.

Updated data from the ministry shows 1,183 foreign direct investment projects worth US$11.83 billion had got investment certificates in the year to June 20, rising 57.9% year-on-year. Active foreign investors had pumped US$5.14 billion into 549 projects, up 35.8% against the year-earlier period.

Meanwhile, foreign investors had also spent US$2.24 billion buying shares of domestic firms on the stock market, almost double the same period last year.

As such, the total foreign investment approvals, including fresh direct investments, additional funds injected into operational projects, and portfolio investments in the first half have amounted to US$19.22 billion.

FDI projects so far this year have disbursed US$7.72 billion, up 6.5% against the same period last year.

Japan takes first position

Capital committed by Japanese investors has amounted to US$5.08 billion, accounting for 26.45% of the total US$19.22 billion in the first half. This is the first time in as many years Japan has become the biggest foreign investor in Vietnam, having trailed behind South Korea as the latter boasted big-ticket projects by Samsung and LG in previous years.

The uptrend in Japanese investment in Vietnam is poised to continue following the successful Japan visit early this month by Prime Minister Nguyen Xuan Phuc. During the visit, enterprises of the two countries struck many deals worth US$22 billion, which will be implemented in the coming time.

At an investment conference in Japan on June 5, PM Phuc and his Japanese counterpart Shinzo Abe pledged to continue policies to support Japanese investors in Vietnam.

Japanese investors are also having a positive view on the business environment in Vietnam. Hiroyuki Ishige, chairman of the Japan External Trade Organization (JETRO), has recently announced results of a survey of Japanese enterprises operating overseas in the fiscal year ending March 31.

According to the JETRO survey, Vietnam is seen as the third most important market for Japanese exporters behind China and the United States. This ranking is quite significant given the different sizes of the three economies.

However, the number of Japanese enterprises wanting to expand business in Vietnam has increased for the second consecutive year, from 32.4% in the previous survey to 34.1% in the latest survey. In this respect, Vietnam also ranks third among the most favorable destinations for Japanese investors

Source: The Saigon Times