The situation of attracting foreign investment in the first 7 months of 2020

The situation of attracting foreign investment in the first 7 months of 2020

Until July 20, 2020, the total newly, adjusted, and contributed capital (GVMCP) of foreign investors was 18.82 billion USD, equaling 93.1% as compared to the same period in 2019. Real capital The current value of foreign direct investment projects is estimated at 10.12 billion USD, equaling 95.9% compared to the same period in 2019.

 
Until  July 20, 2020, the total newly, adjusted, and contributed capital (GVMCP) of foreign investors was 18.82 billion USD, equaling 93.1% as compared to the same period in 2019. Real capital The current value of foreign direct investment projects is estimated at 10.12 billion USD, equaling 95.9% compared to the same period in 2019.
 
Until July 20, 2020, the total newly, adjusted, and contributed capital (GVMCP) of foreign investors was 18.82 billion USD, equaling 93.1% as compared to the same period in 2019. The implemented capital of foreign direct investment projects is estimated at 10.12 billion USD, equaling 95.9% compared to the same period in 2019.
 
Accumulated projects to July 20, 2020, the whole country has 32,391 valid projects with a total registered capital of 380.6 billion USD. The accumulated  capital of foreign direct investment projects was estimated at 221.87 billion USD, equaling 58.3% of the total valid registered investment capital.
 
Details are as follows:
 
I. ON FOREIGN INVESTMENT IN VIETNAM
 
1. Situation of attracting foreign investment in the first 7 months of 2020
 
1.1. Operation situation:
 
Realized capital:
 
As of July 20, 2020, foreign direct investment projects were estimated to disburse 10.12 billion USD, equaling 95.9% as compared to the same period in 2019.
 
Import and export situation:
 
Export: Export turnover of the foreign invested sector continued to decrease in value over the same period as well as the proportion of the country's export turnover. Export (including crude oil) reached over 95 billion USD, equaling 94.3% over the same period, accounting for 65.2% [1] of export turnover. Export excluding crude oil was 94.1 billion USD, equaling 94.5% as compared to the same period in 2019, accounting for 64.6% of national export turnover in 7 months of 2020.
 
Import: Import of FDI sector was nearly 77.5 billion USD, equaling 93.9% over the same period and accounting for 55.6% of import turnover of the whole country.
 
Despite a decrease compared to the same period, in the first 7 months of 2020, the FDI sector still had a trade surplus of nearly US $ 17.6 billion including crude oil and a trade surplus of US $ 16.7 billion excluding crude oil, offset the import. trade surplus of 11.1 billion USD of the domestic area, helping the country trade surplus of nearly 6.5 billion USD.
 
As of July 20, 2020, the total newly registered capital, adjusted and contributed capital to buy shares of foreign investors reached 18.82 billion USD, equaling 93.1% as compared to the same period in 2019. Despite the registered capital New granted capital and adjusted capital increased over the same period, but the contributed capital of foreign investors in the form of GVMCP continued to decrease, reducing the total investment capital attracted in the first 7 months.
 
Inside:
Newly registered capital: 1,620 new projects were granted certificates of investment certificate (down 21.5% over the same period), total registered capital reached US $ 9.46 billion (up 14.4% over the same period in 2019). The increase in investment capital was mainly due to the new LNG project granted a new investment certificate of US $ 4 billion (accounting for 42.3% of the total capital in the first 7 months of the year). new registration). Large projects have pushed the average project size up over the same period, from 4.3 million USD in 2019 to 5.8 million USD in 2020.
 
Adjusted capital: There were 619 turns of projects registered to adjust investment capital (down 21.7% over the same period), the total additional registered capital reached over 4.7 billion USD (up 37.7% compared to the same period). period). The adjusted capital in 7 months increased due to the South Vietnam Petrochemical Complex Project in Ba Ria - Vung Tau (Thailand) adjusted to increase the investment capital by 1,386 billion USD and the West Ho Tay urban center project. (Korea) adjusted to increase investment capital by 774 million USD.
 
Capital contribution, share purchase: There are 4,459 times of GVMCP of foreign investors (up slightly by 1.6% over the same period), total value of contributed capital is 4.64 billion USD (equal to 54.4% over the same period). The structure of value of capital contribution and share purchase in total investment capital also decreased significantly compared to the same period in 2019 (from nearly 42.1% in 7 months of 2019 to 23.7% in 7 months of 2020).
 
According to investment sectors:
 
Foreign investors have invested in 18 sectors, of which the processing and manufacturing industry leads with total investment capital of over 8.96 billion USD, accounting for 47.6% of total investment capital. registration. The field of electricity production and distribution ranked second with total investment capital of 3.95 billion USD, accounting for 21% of total registered investment capital. Next are the fields of real estate business, wholesale and retail with a total registered capital of 2.8 billion USD and nearly 1.1 billion USD. The rest are other fields.
 
According to investment partners:
 
There are 104 countries and territories investing in Vietnam. Singapore leads the way with a total investment of US $ 6.44 billion, accounting for 34.1% of total investment in Vietnam; South Korea ranked second with total investment capital of 2.8 billion USD, accounting for 15% of total investment capital. China ranked third with a total registered investment capital of 1.7 billion USD, accounting for 9% of total investment capital. Next is Japan, Thailand, Taiwan, ...
 
Considering the number of new projects, Korea ranked first (421 projects); China ranked second (237 projects); Japan ranked third (175 projects); Hong Kong ranked fourth (148 projects); ...
 
According to investment area:
 
Foreign investors have invested in 59 provinces and cities across the country. Bac Lieu continues to lead with a large project with an investment of 4 billion USD, accounting for 21.3% of the total registered investment capital. Hanoi ranked second with a total registered capital of 2.82 billion USD, accounting for nearly 15% of total investment capital (of which investment is mainly based on the existing project expansion method and GVMCP, accounting for 42.6% respectively. % and 42.1% of total registered investment capital of Hanoi). Ho Chi Minh City ranked third with nearly 2.4 billion USD, accounting for 12.6% of total investment capital (of which GVMCP investment accounted for a large proportion, accounting for 76.2% of the total investment capital of the City). ). Next in turn are Ba Ria - Vung Tau, Binh Duong, Hai Phong, ...
 
Considering the number of new projects, Ho Chi Minh City leads (598 projects); Hanoi ranked second (336 projects); Bac Ninh ranked third (102 projects), ....
 
Some major projects in July and the first 7 months of 2020:
 
Particularly in July 2020:
 
(1) West Ho Tay urban center project (South Korea), adjusted investment capital by another 774 million USD.
 
(2) InTC Phase II factory expansion project of electrical components from INTC Co., Ltd. (Korea), total investment capital of 150 million USD in Phu Tho.
 
(3) CROWN Vung Tau Beverage Packaging Co., Ltd. (Singapore), with a total investment of USD 130 million.
 
(4) Hyosung Financial System Vina Co., Ltd. (Korea), a total investment of USD 110 million in Bac Ninh.
 
In the first 7 months of 2020:
 
 (1) Bac Lieu liquefied natural gas (LNG) power plant project under LNG Bac Lieu thermal power center (Singapore), registered investment capital of US $ 4 billion with the goal of producing electricity from liquefied natural gas. LNG (granted certificate of competency on January 16, 2020).
 
(2) Southern Vietnam Petrochemical Complex Project (Thailand) in Ba Ria - Vung Tau, adjusted to increase investment capital by VND 1,386 billion (amended investment certificate issued on April 18, 2020).
 
(3) Radian Jinyu Tire Factory (Vietnam), with a total investment of US $ 300 million with the goal of producing all-steel TBR tires invested by Chinese investors in Tay Ninh (issuing certificates of investment certificate on 1/21/2020).
 
(4) Victory Project - A factory manufacturing high-tech electronic products in Dong Van, Ha Nam (Taiwan), with a total investment of USD 273 million with the goal of manufacturing and assembling electric computer equipment. electronics and peripherals; Production of civil electronic audio and visual equipment (granted this certificate of competency 1/4/2020)
 
(5) Office building project at 29 Lieu Giai (Singapore), adjusted to increase investment capital by 246 million USD (amended investment certificate issued on March 31, 2020).
 
2. Situation of attracting foreign investment in July 2020
 
In July 2020, the whole country attracted US $ 3.15 billion of newly registered, adjusted and GVMCP capital of foreign investors, up 79.8% over the same period in 2019, up 76.2% compared to the same period in 2019. June 2020 and accounted for 16.7% of total investment capital attracted in 7 months.
Inside:
 
- There are 202 projects newly granted certificates of investment certificate, total registered capital reached US $ 1.02 billion, up 19.1% over the same period in 2019, up 2.8% compared to June 2020 and accounting for 32.6%. total invested capital in the month. Although the number of newly registered investment projects in July decreased compared to the previous months, this month, there were more large production projects with the capital scale from USD 100 million to USD 150 million.
 
- There are 93 times of projects adjusted capital, the total additionally registered capital reached nearly USD 992.2 million, increased more than 2 times compared to the same period in 2019, accounting for 31.5% of the total investment capital in the month. July marked the return of adjusted investment capital after the lowest decrease in June, an increase of nearly 3.7 times compared to June 2020.
 
- There are 334 times of GVMCP of foreign investors (down 9% over the same period), total value of contributed capital is nearly 1.13 billion USD, the highest level in 7 months of 2020, an increase of 2.8 times compared to the same period of the year In 2019, nearly 2.2 times more than in June 2020, accounting for 35.9% of total investment capital in the month.
 
  3. Comments on foreign investment situation in July and the first 7 months of 2020
 
- Investment capital in July 2020 increased sharply compared to the previous months (only after April 2020) and compared to the same period in 2019. The scale of new investment projects, adjustments as well as the scale of GVMCP increased. significant, reaching 5.1 million USD / new project; US $ 10.7 million / capital adjustment and US $ 3.4 million / GVMCP.
 
- The Covid-19 pandemic had negative impacts on the world economy, in which production and business activities were delayed, many businesses were in difficult situations. Implemented capital of foreign investment projects continued to decrease in the first 7 months, only equaling 95.9% over the same period, but the level of reduction is gradually improving compared to the previous months.
 
- The travel of investors as well as new investment decisions and the expansion of foreign investment projects are still affected. The number of new projects and capital adjustments decreased compared to the same period, especially newly registered projects (decreasing in July and 7 months). Although new and increased capital increased, the increase was mainly due to large projects, which had been submitted and negotiated for a long time before.
 
- The impact of the Covid-19 pandemic continues to affect import and export turnover nationwide. The FDI sector still had a trade surplus of US $ 17.6 billion and contributed to a trade surplus of nearly US $ 6.5 billion, but the import-export turnover continued to decrease compared to the same period.
 
- In the first 7 months of the year and especially in July, thousands of experts from Korea, Hong Kong, and Japan continue to be supported to enter Vietnam to maintain and expand production.
 
 4. The accumulated foreign investment until July 20, 2020
 
Accumulated to July 20, 2020, the whole country has 32,391 valid projects with a total registered capital of 380.6 billion USD. The accumulated realized capital of foreign direct investment projects was estimated at 221.87 billion USD, equaling 58.3% of the total valid registered capital.
 
- By field: Foreign investors have invested in 19/21 branches in the national economic sub-system, of which the processing and manufacturing industry accounts for the highest proportion with 222.3 billion USD, accounting for 58.4% of total investment capital, followed by real estate business with 59.8 billion USD (accounting for 15.7% of total investment capital); electricity production and distribution with 27.5 billion USD (accounting for 7.2% of total investment capital).
 
- By investment partners: In July 2020, investors from Malta have new investment projects in Vietnam, bringing the total number of countries and territories having investment projects in Vietnam to 137 partners. . In which, South Korea ranks first with a total registered capital of over 70 billion USD (accounting for 18.4% of total investment capital). Japan ranked second with 60.2 billion USD (capturing 15.8% of total investment capital), followed by Singapore and Taiwan, Hong Kong.
 
- By location: Foreign investment has been present in all 63 provinces and cities nationwide, of which Ho Chi Minh City is still the leading province in attracting foreign investment with US $ 47.8 billion (accounting for 12.6%). total investment); followed by Hanoi with nearly 39 billion USD (accounting for 10.2% of total investment capital); Binh Duong with over 35 billion USD (accounting for 9.2% of total investment capital).
 
II. ON VIETNAM'S INVESTMENT ABROAD
 
In the first 7 months of 2020, the total newly and adjusted investment capital abroad from Vietnam was 252.9 million USD, equaling 91.2% as compared to the same period in 2019. Having 80 projects were granted certificates. newly registered investment, with a total registered capital of 206.3 million USD (up 14.5% over the same period) and 17 times of projects adjusted investment capital with a total additional capital of 46.6 million USD (equal to 47.9% over the same period in 2019).
 
Particularly in July 2020, there were 10 projects granted new investment certificate and 3 times of adjusted projects, with the total newly and additionally granted investment capital reaching 30.3 million USD, equaling 32.1% compared to the same period in 2019 and equal to 72.1% compared to June 2020 (due in May 2020 due to the large project of Tungsten Company Masan (Germany) with a total investment capital of US $ 91.5 million).
 
Vietnamese investors have made investments abroad in 14 sectors. In which, processing and manufacturing industry is the leading one, with 8 newly granted projects and 4 times of capital adjustment, total registered capital of 178.7 million USD, accounting for 70.7% of total investment capital. The accommodation and catering service sector ranked second, with a total investment of 15.9 million USD, accounting for 6.3%; followed by information and communications, wholesale and retail.
 
There are 24 countries and territories receiving investment from Vietnam in the first 7 months of 2020. Leading is Germany with 4 new investment projects, total registered investment capital of 92.6 million USD, accounting for 36.6 % total investment. Myanmar ranked second, with 38.3 million USD, accounting for 15.1%. Next is the United States, Singapore, Laos ...

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