FDI hits four-year low as Covid-19 continues to rampage

By Dat Nguyen   August 27, 2020 | 08:43 pm PT
FDI hits four-year low as Covid-19 continues to rampage
Workers assemble cars in a factory of Ford in the northern province of Hai Duong. Photo courtesy of Ford Vietnam.
Registered foreign direct investment so far this year has fallen to a four-year low as the coronavirus continues to hit economic activity.

It fell 13.7 percent year-on-year to $19.54 billion in the first eight months, according to the Foreign Investment Agency.

Of this, $9.73 billion went into new projects, a 6.6 percent increase, including $4 billion in a 3,200-MW liquefied natural gas-fired power plant in the Mekong Delta province of Bac Lieu invested by a Singaporean company.

Over $4.87 billion, or 22.2 percent more than the same period last year, went into existing projects, including $1.39 billion invested in the Long Son Petrochemicals in the southern province of Ba Ria-Vung Tau by its Thai owner.

Mergers and acquisitions by foreign investors were worth $4.93 billion, a 48.2 percent decline.

The resurgence of Covid-19 in Vietnam is having a considerable impact on foreign investment and causing great difficulties to existing companies, the agency said.

The investment came from 106 countries and territories, with Singapore leading with $6.54 billion followed by South Korea, mainland China, Japan, Thailand, and Taiwan.

It went into 18 sectors led by manufacturing with $9.3 billion followed by power, real estate and retail.

Bac Lieu Province topped the list with 20.5 percent of the investment followed by Hanoi, Ho Chi Minh City, Ba Ria – Vung Tau, Binh Duong, and Hai Phong City.

Last year FDI rose 7.2 percent to $38 billion, a 10-year high.

In the first eight months of the year, disbursed FDI reached $11.45 billion, down 4.3 percent year-on-year.

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