FDI inflows jump by 18.5 pct

By Anh Tu   March 28, 2021 | 11:06 pm PT
FDI pledges, which indicate the size of future FDI disbursements, reached $10.13 billion for the year as of March 20, a year-on-year increase of 18.5 percent.
Labourers work at a foreign-invested car factory in Hai Duong Province, northern Vietnam. Photo by Reuters/Kham.

A foreign automobile factory in northern Hai Duong Province. Photo by Reuters/Kham.

The investment has flowed into 17 sectors led by manufacturing with 49.6 percent of the FDI pledges, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

Singapore was the leading investor with nearly $4.6 billion, followed by Japan with $2.1 billion and South Korea with $1.2 billion.

But the number of new projects dropped by 69.1 percent to 234 as Covid-19 continues to prevent air travel and dampen investor sentiment.

The major projects include the $3-billion LNG-fired power plants Long An 1 and 2 in the southern province of Long An by a joint venture between South Korea’s GS Energy and fund management company VinaCapital, the $1.3-billion O Mon 2 Thermal Power Plant in the southern city of Can Tho by a joint venture between Vietnam Trading Engineering Construction JSC and Japan’s Marubeni Corporation and a $750-million investment in LG Display’s existing plant in Hai Phong.

Vietnam received $4.1 billion in foreign direct investment (FDI) in the first three months of 2021, up 6.5 percent from a year earlier.

Last year, FDI pledges had fallen by 25 percent to $28.5 billion.

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