Surpassing Korea, China’s Capital Flowing Strongly into Vietnam

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Only in the first two months of 2017, China investment capital is pouring strongly into Vietnam market through indirect investment for acquiring shares or direct investment for set up business in Vietnam.

The Foreign Investment Department (Ministry of Planning and Investment) has announced the situation of attracting foreign investment.

Accordingly, in the first 2 months of 2017, there were 313 new projects were granted investment certificates with a total registered capital of 2,028 billion USD, increased by 6.5% over the same period; 137 projects register to increase capital with 759 million USD, decreased by 15.5% over the same period.

In addition, foreign investors have spent 619 million USD to buy share or contribute capital to Vietnam enterprises, 4 times higher than the same period in 2016. Generally, in the first 2 months of 2017, the total newly, additional capital and contribute to purchase share reach 3.4 billion USD, increase by 21.5% over the same period in 2016.

In particular, foreign investors have invested in 18 sectors, in which the processing industry and manufacturing are attracting the attention of foreign investors with total capital of 2.5 billion USD, accounting for 73.4% of total registered investment capital in two months.

The real estate business sector ranked second with a total investment of 345.5 million USD, accounting for 10.1% of total investment capital.

Standing at the third position are the wholesale and retail sectors with total registered investment capital of 222.6 million USD, accounting for 6.5% of total registered capital.

In the first 2 months of 2017, there are 61 countries and territories having investment projects in Vietnam.

Singapore ranked first with total investment of 881.6 million USD, China ranked second with total investment of 721.7 million USD, Korea ranked third with total registered investment capital of 637.1 million USD.

If as every year, Korea ranked first in terms of investment capital into Vietnam, this year the ranking has changed as China took place.

The ranking of top 5 largest investors into Vietnam hardly have the participation of China investors. But this year, this country has increased investment into Vietnam through two forms that are pouring fund to implement the project or purchase share of Vietnam enterprises. China investors usually focus on textile and plastic projects…

In 2 months, China investors have registered to implement 123 projects in Vietnam and 174 turns of purchasing share, accounting for 21.1% of total investment in Vietnam

Some major projects of China investors are Billion Vietnam polyester factory project, with total investment of 220 million USD in Tay Ninh. Besides there are Lan Son industrial zone infrastructure investment project and Khai Hong Viet plastics factory, with total investment capital 150 million USD, invested by Wenzhou Hendy Mechanism and Plastics Co., Ltd in Bac Giang.

In the first two months of 2017, foreign investors have invested in 47 provinces, in which Binh Duong attracted the most FDI with total registered capital of 791 million USD. Hanoi ranks 2nd with total registered capital of 519 million USD. Ho Chi Minh City ranks 3rd with total registered capital of 464.2 million USD accounted for 13.6% of total investment capital.

Also according to the Foreign Investment Department, as of February 20th 2017, there were 22,904 projects that are still valid with total registered capital of 297 billion USD.

The accumulated capital of foreign investment projects is estimated to reach 156.35 billion USD, with total valid registered capital of 52.6%.

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