South Korea becomes Vietnam’s biggest foreign investor in Q1

South Korea has taken over Singapore to become Vietnam's biggest foreign investor in the first quarter, with investment totaling $3.74 billion, or 48.6 percent of the total foreign direct investment (FDI) pledged for the period, the Vietnamese government said Friday.

Singapore, which held the top position in January and February, came second with $911 million, followed by China with $823.6 million, the Foreign Investment Agency under the Planning and Investment Ministry said in a monthly report.

Actual FDI inflow in the first three months rose 3.4 percent from a year ago to $3.62 billion, while new pledges rose 6.5 percent to $2.92 billion, the report said. 

FDI is a major source of foreign exchange, which along with overseas remittances, helps Vietnam improve its trade balance.

During the period, foreign firms from 71 countries and territories have new pledges and additional funds in 18 sectors, with the manufacturing and processing industry attracting $6.54 billion, or 84.9 percent of the total.

The real estate sector comes second, while the wholesale and retail sector has the third position.

Foreign investments have been poured into 52 cities and provinces in the three-month period, with the northern province of Bac Ninh, 30 kilometers (18 miles) northeast of Hanoi, attracting $2.61 billion, or 33.86 percent of the total.

Binh Duong Province, about 40 km north of Ho Chi Minh City, ranks second with 18 percent and Ho Chi Minh City comes third with 7.78 percent.

As of March 20, Vietnam has had more than 23,000 FDI projects in operation, with a combined registered capital of $300.7 billion.

Most of them are in the manufacturing and processing industry, making up 59.3 percent of the total investment. 

Overall, South Korea also led the foreign investor list, with investment totaling $54 billion, followed by Japan with $42.49 billion.

Large-scale FDI projects in the first quarter include a $2.5 billion expansion project of Samsung Display Vietnam, a subsidiary of Samsung Display South Korea, in Bac Ninh Province.

Taiwan's Polytex Far Eastern Ltd, which manufactures polyester fiber and cotton spinning in Binh Duong Province, got the green-light to increase its registered capital by $485.8 million to $760 million.