Eight-month FDI disbursal rises 6.3 pct

By Hung Le August 28, 2019 | 06:07 pm PT

Employees work at the assembly plant of a foreign direct investment car factory in Hai Duong. Photo by Reuters/Kham.

Foreign investors brought in $11.96 billion in January-August, up 6.3 percent year-on-year, the Ministry of Planning and Investment says.

But FDI commitments in the period were down 7.1 percent to $22.63 billion, the ministry stated.

Of this amount $15.74 billion, or 69.6 percent, is in manufacturing, $2.31 billion (10 percent) in real estate and $1.9 billion (5.2 percent) in wholesale and retail sector.

Hong Kong continued to be the top source, accounting for 24.9 percent, followed by South Korea and Singapore with 15.4 percent and 14.5 percent respectively.

Last year FDI disbursement reached a record $19.1 billion, a year-on-year increase of 9.1 percent.

Singapore’s United Overseas Bank (UOB) last week published a report predicting that Vietnam’s relatively low labor costs, young labor pool and an array of free trade agreements would help its foreign investment top $20 billion this year.

Vietnam has emerged as an attractive investment destination for multinational enterprises seeking to bypass tariffs resulting from the U.S.-China trade spat, UOB said in the report.

Vietnam's Politburo last week issued its first ever resolution on attracting foreign investment prioritizing high-tech and clean sectors.