Korea Leads FDI in Vietnam

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The flow of FDI capital into Vietnam has continued to grow strongly over the years, demonstrating the confidence of foreign investors when deciding to set up business in Vietnam.

According to data from the Foreign Investment Agency (Ministry of Planning and Investment), the total amount of FDI capital such as new registered, capital increase, capital contribution and share purchase in the first 7 months of 2017 is 21.93 billion USD, increases by 52% over the same period in 2016.

Of these, the new registered capital was 12.92 billion USD, increases by 48.7% over the same period; the added capital was 5.87 billion USD, increases by 38.5% over the same period. The amount of capital that investors spend to contribute capital and buy shares in enterprises in Vietnam is 3.12 billion USD, increases by 109.7% over the same period in 2016.

According to the trend, more and more foreign investors have recently invested in Vietnam through capital contribution and share purchase. An increase of over 109% indicates that. Furthermore, data from the Foreign Investment Agency showed that by July 20th 2017, the FDI projects have disbursed 9.05 billion USD, increase by 5.8% over the same period in 2016. The rate of increasing in FDI capital disbursement is gradually improving compared to the first months of the year.

In the first 7 months of 2017, foreign investors have invested in 18 industries and sectors, of which the manufacturing and processing sectors have attracted the attention of foreign investors, with total capital of 10.83 billion USD, accounting for 49.4% of the total registered capital. The electronic production and distribution sectors ranked 2nd with total investment of 5.25 billion USD, accounting for 23.98% of total investment capital. Standing at the 3rd position is mining sector with total registered capital of 1.28 billion USD, accounting for 5.86% of the total registered capital.

Meanwhile, in terms of partner, Korea ranked 1st with a total investment of 5.62 billion USD, accounting for 25.63% of total investment capital. Japan ranked 2nd with total registered capital of 5.46 billion USD, accounting for 24.92% of total investment capital in Vietnam.

In terms of localities, Thanh Hoa is the most attractive province with the total registered capital of 3.06 billion USD, accounting for 13.9% of total investment capital. Bac Ninh ranked 2nd with total registered capital of 2.95 billion USD, accounting for 13.48% of total investment capital. Nam Dinh ranked 3rd with a total registered capital of 2.2 billion USD, accounting for 10% of total investment capital.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

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