REVIEW
of
FINANCE -
Feb. 2018
17
investors poured nearly $5 billion into Sabeco. As
a result, in the year 2017, over $22 billion of FDI
disbursed, contributing to raise the investment capital
of the whole society, thereby creating an important
foundation for economic growth.
Undoubtedly, besides the explosion of capital
through capital contribution, share purchase, the
return of billion-dollar projects has contributed to
boosting FDI into Vietnam in 2017 with spectacular
growth. Up to five projects worth billions of
dollars have been granted investment certificates
in 2017, including three BOT projects, including the
investment in the construction of the Nghi Son 2 BOT
thermalpowerplant, the total investment capital $2.79
billion, invested by Japanese investors in Thanh Hoa,
with a capacity of 1,200 MW; The BOT Van Phong 1
Thermal Power Plant project, total registered capital
of 2.58 billion USD invested by Japanese investors in
Khanh Hoa with a capacity of 1,320 MW and Nam
Dinh 1 BOT Thermal Power Plant, Total investment
capital is 2.07 billion USD invested by Singaporean
investors in Thai Binh, with a net capacity of 1,109.4
MW. Inaddition, there is theSamsungDisplayproject
to increase capital by $2.5 billion in Bac Ninh and
the Block B - O Mon gas pipeline project, which has
an investment capital of $1.27 billion in Kien Giang;
Intelligent complex project in the functional area No.
2A in Thu ThiemNewUrbanArea, registered capital
of 885.85 million USD, in Ho Chi Minh City
In 2017, 115 countries and territories have
investment projects in Vietnam. Japan ranked first
with total investment of 9.11 billion USD, accounting
for 25.4% of total investment; Korea ranked second
with total registered capital of 8.49 billion US dollars,
accounting for 23.7%; Singapore ranked third with a
total registered capital of $5.3 billion, accounting for
14.8%. Foreign investorshave investedin59provinces
and cities. Ho Chi Minh City attracted the most
capital with 6.5 billion USD, accounting for 18.1% of
total investment; Bac Ninh ranked second with total
registered capital of USD 3.4 billion, accounting for
9.5%; Thanh Hoa ranked third with a total registered
capital of 3.17 billion USD, accounting for 8.8%.
In 2017, exports of foreign invested sector
(including crude oil) reached 155.24 billion USD, up
23% over the same period in 2016 and accounted for
72.6% of export turnover. Exports excluding crude
oil totaled $152.34 billion, up 23% over the same
period of 2016 and accounted for 71.2% of exports.
social investment always accounts for about 25%,
contributing over 20% to GDP. It is also a budget-
paying sector, accounting for a high proportion of
total revenue, accounting for a large and growing
share of Vietnam’s total export turnover at about
70%. In addition to the quantifiable contributions, the
FDI sector also has a spillover effect to other sectors
of the economy, stimulating domestic investment,
economic restructuring, and reform of state-owned
enterprises, renovating administrative procedures,
perfecting market economy institutions, promoting
international economic integration.
2017 - the year of new FDI records
In 2017, FDI in Vietnam reached nearly $36 billion
- the highest level in 10 years. As of 20/12/2017, total
FDI inflows into Vietnam, including new registered
capital, increased capital and contributed capital to
buy shares of foreign investors was $35.88 billion, up
44.4% over the same period in 2016. Of which, 2,591
new projects were granted investment registration
certificates, with a total registered capital of 21.27
billion USD, an increase of 42.3% over the same
period in 2016. In addition, there are 1,188 projects
registered to adjust investment capital with the total
registered capital increased to approximately 8.41
billion USD, up 49.2% over the same period in 2016.
There are 5,002 shares of foreign investors with the
total capital contribution of $6.19 billion, up 45.1%
over the same period of 2016. If only the FDI, the
figure is over $29.68 billion. Disbursement in 2017
is also set at a record $17.5 billion. This figure is the
highest level in 30 years.
In addition to FDI, the investment capital through
capital contribution and share purchase has also
increased dramatically, especially when foreign
Numberofnewprojects
Newly registeredand increasedcapital (billionUSD)
Disbursedcapital (billionUSD)
GRAPH 1: FDI IN VIETNAM THROUGH THE YEARS
Source: Ministry of Planning & Investment
