FDI pledges reach nearly US$20 billion in eight months

Vietnam attracted foreign direct investment (FDI) of US$19.54 billion in the first eight months of 2020, down 13.7% from the same period of 2019, according to the Ministry of Planning and Investment (MPI).

FDI disbursement was estimated at US$11.35 billion in the first eight months of 2020.
FDI disbursement was estimated at US$11.35 billion in the first eight months of 2020.

Disbursement during the period also declined by 5.1% to US$11.35 billion, as shown by data as of August 20.

There were nearly 1,800 new foreign-invested projects in the January-August period, with total capital pledges of US$9.73 billion, with the largest project being a natural gas in Bac Lieu Province worth US$4 billion.

The past eight months also saw foreign investors pledge an additional US$4.87 billion to existing projects and another US$4.93 billion in capital contributions.

Due to the coronavirus pandemic, exports by the foreign sector, including crude oil exports, fell by 4.5% to US$113.3 billion, accounting for 65.1% of Vietnam’s export revenue.

Their imports also dropped by 5.3% to US$90.8 billion, meaning the sector recorded a trade surplus of over US$22 billion.

Manufacturing remained the most attractive to foreign investors, receiving US$9.3 billion, followed by power generation and distribution with US$4 billion and property trading with US$2.87 billion.

Singapore, the Republic of Korea and China were the three largest investors with respective capital pledges of US$6.54 billion, US$2.97 billion and US$1.75 billion.

With the natural gas project, Bac Lieu Province was the largest FDI recipient during the first eight months of 2020, followed by Hanoi and Ho Chi Minh City, which received US$2.86 billion and US$2.62 billion, respectively.