THE SITUATION OF ATRACTTING FOREIGN INVESTMENT IN THE FIRST 3 MONTHS OF 2020

THE SITUATION OF ATRACTTING FOREIGN INVESTMENT IN THE FIRST 3 MONTHS OF 2020

Until March 20, 2020, the total newly registered capital, adjusted and contributed capital to buy shares of foreign investors reached 8.55 billion USD, equaling 79.1% of the same period in 2019. Implemented capital of the project Foreign direct investment is estimated at 3.85 billion USD, equaling 93.4% as compared to the same period in 2019.

I. FOREIGN INVESTMENT IN VIETNAM
1. The situation of attracting foreign investment in the first 3 months of 2020
1.1. Operation situation:
Realized capital:
As of March 20, 2020, foreign direct investment projects were estimated to disburse 3.85 billion USD, equaling 93.4% as compared to the same period in 2019.
 
Import and export situation:
 
Export: Export of foreign investment sector (including crude oil) was 40.4 billion USD, equaling 97.1% over the same period, accounting for 70.8% of export turnover. Export excluding crude oil was nearly 39.9 billion USD, equaling 97.1% as compared to the same period in 2019, a slight increase (0.2%) compared to the same period in 2018, accounting for 67.5% of export turnover. nationwide in the first 3 months of 2020. Due to the impact of the COVID-19 epidemic, the export turnover of the foreign-invested sector decreased over the same period after many years of continuous increase.
 
Import: The import of FDI sector was 33.18 billion USD, equaling 99.2% over the same period and accounting for 59% of import turnover of the whole country.
 
In the first 3 months of 2020, although import-export turnover decreased compared to the same period last year, the FDI sector still had a trade surplus of US $ 7.2 billion, including crude oil and the US $ 6.7 billion, excluding crude oil. Meanwhile, the domestic economic sector had a trade deficit of US $ 4.4 billion.
 
1.2. Investment registration situation:
 
As of March 20, 2020, the total newly registered capital, adjusted and contributed capital to buy shares of foreign investors reached 8.55 billion USD, equaling 79.1% as compared to the same period in 2019. Despite a decrease compared to In the same period of 2019, in terms of value, the registered capital in the first 3 months of 2020 still increased compared to the same period in 2016-2018 (up 47% compared to 2018, 11% compared to 2017 and 97% compared to 2016).
 
Includes:
 
Newly registered capital: There are 758 new projects granted investment registration certification. The total registered capital reached US $ 5.5 billion, up 44.8% over the same period in 2019. The newly registered capital increased due to the project of Bac Lieu liquefied natural gas power plant (LNG) being granted a new certificate of investment with Total investment is 4 billion USD.
 
Adjusted capital: There are 236 projects registered to adjust investment capital with the total additional registered capital of over 1.07 billion USD, equaling 82% compared to the same period in 2019.
 
Capital contribution, share purchase: There are 2,523 times of capital contribution and share purchase of foreign investors with a total value of the capital contribution of nearly US $ 2 billion, up 52.6% in the number of times of capital contribution, share purchase and equal to 34.4% value of contributed capital over the same period in 2019. Small capital contribution, on average only US $ 0.78 million / capital contribution (much smaller than the average scale in the first 3 months of 2019 is 3.4 million USD / time of capital contribution due to the case of contributing capital, buying shares of Beerco Limited (Hong Kong) into Vietnam Beverage Company Limited with the value of the capital contribution of US $ 3.85 billion). The structure of value of capital contribution and share purchase in total registered investment capital also decreased significantly compared to the same period in 2019 (from 52.6% in 3 months of 2019 to 22.9% in 3 months of 2020)
 
(Detailed figures table in Appendix I attached to the report).
 
 By investment area:
 
Foreign investors have invested in 18 sectors, of which electricity production and distribution led the way with a total capital of over US $ 4 billion, accounting for 47.5% of the total registered investment capital. The manufacturing and processing industry ranked second with total investment capital of 2.72 billion USD, accounting for 31.9% of total registered investment capital. However, considering the number of projects, the processing and manufacturing industry still accounts for the majority (accounting for 29.7%). Next is the wholesale and retail business, real estate business with a total registered capital of 682 million USD and 264 million USD. The rest are other fields.
 
By investment partners:
 
There are 87 countries and territories investing in Vietnam. Singapore leads the way with a total investment of 4.54 billion USD, accounting for 53.1% of total investment capital into Vietnam; Japan ranked second with total investment capital of 846.7 million USD, accounting for 9.9% of total investment capital. China ranked third with a total registered investment capital of 815.6 million USD (including a newly licensed project of 300 million USD and a project of capital adjustment of 138 million USD; these two cases accounted for 55.2 million USD). % of the total investment of China in the first quarter), accounting for 9.3% of total investment. Next is South Korea, Hong Kong, Taiwan, ...
 
Considering the number of projects, South Korea ranked first (210 projects); China ranked second (113 projects); Japan ranked third (93 projects); Singapore ranked fourth (64 projects); ...
 
By investment area:
 
Foreign investors have invested in 55 provinces and cities across the country. Bac Lieu leads with a major project with an investment of 4 billion USD, accounting for 46.8% of total registered investment capital. Ho Chi Minh City ranked second with a total registered capital of over 1 billion USD, accounting for 12.3% of total investment capital (of which investment by capital contribution, share purchase accounted for a large proportion, accounting for 78.8% % of the total registered investment capital of the City and accounted for 53.2% of the total capital contribution, share purchase and accounted for 42.3% of the total value of contributed capital of the whole country). Tay Ninh ranked third with 506.8 million USD, accounting for 6% of total investment capital. Next are Hanoi, Binh Duong, Ba Ria - Vung Tau ...
 
Considering the number of projects, Ho Chi Minh City leads the way (290 projects); Hanoi ranked second (169 projects); Bac Ninh ranked third (53 projects), ....
 
Some major projects in the first 3 months of 2020:
 
- LNG Liquefied Natural Gas (LNG) Plant Project in Bac Lieu LNG Thermal Power Center (Singapore), total registered investment capital of US $ 4 billion with the goal of producing electricity from LNG liquefied natural gas. .
 
- Radian Jinyu Tire Manufacturing Plant Project (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.
 
- Radian tire production project (China) in Tay Ninh adjusted to increase investment capital by 138 million USD.
 
- Sews - components Vietnam factory project (Japan) with the goal of producing electrical and electronic components for automobiles and motorcycles; Plastic products in Hung Yen adjusted to increase investment capital by 75.2 million USD.
 
  - The project of manufacturing electronic components, peripheral devices and optical devices (Taiwan) in Hai Phong is adjusted to increase investment capital by another 68 million USD.
 
(Detailed figures table in Appendix II attached to the report).
 
2. The situation of attracting foreign investment in March 2020
 
Particularly in March 2020, the whole country attracted the US $ 2.08 billion of newly registered capital, adjusted and contributed capital, bought shares of foreign investors, accounting for 24.36% of the total investment capital in 3 months, increases 1.8 times than February and equalling 39% compared to January 2020.
 
Includes: 
 
- There are 258 projects newly granted investment registration certification, total registered capital reached 528 million USD, accounting for 25.3% of total investment capital in the month.
 
- There are 85 times of projects adjusted capital, the total registered capital increased by 427 million USD, accounting for 20.5% of the total investment capital in the month.
 
- In March, foreign investors invested mainly in the form of contributing capital, buying shares rather than investing in new projects or expanding existing projects, with 940 times of capital contribution and share purchase of foreign investors, the total value of the capital contribution of 1.13 billion USD, accounting for 54.2% of total investment capital in March and accounting for 57.7% of the total value of the capital contribution of foreign investors in the first 3 months.
 
3. Comments on the foreign investment situation in the first 3 months of 2020
 
- The complicated outbreak of acute respiratory tract inflammation epidemic COVID-19 has greatly affected the travel of investors as well as new investment decisions and the expansion of the existing foreign investment project. , making FDI attraction in the first 3 months of 2020 decrease in both quantity and total registered investment capital. Registered investment capital decreased by 20.9% compared to the same period in 2019; If excluding big projects of over USD billion (new investment project of USD 4 billion in Bac Lieu in 2020 and case of contributing capital, buying shares of Beerco into Beverage in 2019), the total newly registered and adjusted capital and contributed capital to buy shares of foreign investors in the first 3 months of 2020 by 64.6% over the same period in 2019. A number of projects registered and adjusted to expand the project scale decreased (decreased by 3.4 % and 15.4% over the same period).
 
- Foreign investment capital attracted in the first 3 months of 2020 fluctuated between months. Most concentrated in January due to the large $ 4 billion project that was negotiated a long time ago. In February, due to the influence of Canh Ty Lunar New Year holidays, combined with the impact of the COVID-19 epidemic, the registered investment capital decreased sharply compared to January and the lowest in the first 3 months. year.
 
- Investment promotion activities had a big change in the first 3 months of 2020, which recorded a sharp decline in the number of delegations coming to work to explore investment opportunities, especially from partners. Mainly as Japan, Korea, Singapore, ASEAN, USA, EU. Activities of seminars, conferences, and forums on investment have mostly been postponed.
 
- The production and business situation of enterprises encountered many difficulties due to the COVID epidemic 19. The export turnover of the foreign-invested sector in the first 3 months of 2020 decreased compared to the same period in 2019 after increasing continuously for many years. However, the decrease was not much (down 2.9% compared to 2019) and slightly increased (0.2%) compared to the same period in 2018. Although import-export turnover decreased, the FDI sector still had a trade surplus of 7. , US $ 2 billion including crude oil and trade surplus of US $ 6.7 billion excluding crude oil.
 
4. The foreign investment situation until March 20, 2020
 
- By field: Foreign investors have invested in 19/21 branches in the national economic sub-system, of which the processing and manufacturing industries account for the highest proportion of USD 216.7 billion, accounting for 58.6% of total investment capital, followed by real estate business with 58.6 billion USD (accounting for 15.8% of total investment capital); electricity production and distribution with 27.7 billion USD (accounting for 7.5% of total investment capital).
 
- By investment partners: There are now 136 countries and territories having investment projects in Vietnam. In which, South Korea ranks first with a total registered capital of 68.6 billion USD (accounting for 18.5% of total investment capital). Japan ranked second with 59.7 billion USD (capturing 16.1% 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 the US $ 47.5 billion (accounting for 12.8%). total investment); followed by Hanoi with 34.64 billion USD (accounting for 9.4% of total investment capital); Binh Duong with 34.61 billion USD (capturing 9.3% of total investment capital).
 
(Detailed figures table in Appendix III attached to the report)
 
II. ON VIETNAM'S INVESTMENT ABROAD
 
In the first 3 months of 2020, the total newly and additionally registered investment capital abroad from Vietnam was 49.3 million USD, equaling 41.1% as compared to the same period in 2019. Of which 27 projects were granted certificates. received new investment registration, with a total registered capital of 22.9 million USD (equaling 28.5% compared to the same period of 2019) and 06 times of projects adjusted investment capital with an additional capital loss of 26.3 million USD (equal to 66.4% of the same period in 2019).
 
Vietnamese investors have invested abroad in 10 sectors. In which accommodation and catering services are leading, with 2 projects, total registered capital of 14.7 million USD, accounting for 29.9%. The field of professional activities, ranked second, with a total investment of 12 million USD, accounting for 24.3%; followed by the manufacturing industry, wholesale and retail, ...
 
There are 13 countries and territories receiving investment from Vietnam in the first 3 months of 2020. Leading the United States with 7 new investment projects and 1 capital adjustment project, total newly registered investment capital and increased by 20.1 million USD, accounting for 40.8% of total investment capital. Singapore ranked second, with 12.8 million USD, accounting for nearly 26%. Next is Cambodia, Cuba, Hong Kong, ....
 
(Detailed figures table in Appendix IV attached to the report).
 
Appendix: FDI 3.2020
 

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