40
capital of USD 147 million), Thanh Cong
Investment and Development Company (total
invested capital of USD 114.58 million), Shing
Mark Vina Limited Company (total invested
capital of USD 50 million)…
From 2006 to 2010, FDI went through large
volatilities. Total registered capital in 2006 was
USD 12,004 million and increased by 75.5% to
that in 2005. Since Vietnam became the formal
member of World Trade Organization (WTO) in
January 2007, its FDI went up significantly in 2007
and 2008. Many big investors from Korea, USA
and Japan invested their money into Vietnam
thanks to increasingly improved investment
climate and a legal framework for investment
which is correspondent to international practice.
However, FDI inflows to Vietnam experienced
big declines in 2009 and 2010 due to the impacts
from the global economic crisis.
From 2011 to 2015, there was a slight increase
in FDI. In 2011, 1,186 newprojects were registered
obtaining USD 15,589 million (a 21.57% decrease
as opposed to 2010). This decline resulted from
the impacts of the global economic recession,
decreasing belief of investors, inflation,
increasing input costs as well as difficulties in
land clearance in many projetcs. However, the
number of FDI projects and the total registered
capital were improved in the period of 2012 –
2015.
In 2016, thanks to the validation of many Free
Trade Agreements, FDI capital into Vietnam
climbed up. The total capital of newly registered,
additional funded, capital - contributed and
equity invested projetcs reached USD24.3
billion, a 7.1% increase if compared to that of
2015. Impressively, FDI capital disbursed in 2016
was approximately USD15.8 billion, 9% more
than that of 2015 and officially the highest FDI
disbursement so far.
The year 2017 is the meaningful milestone of
30 years of foreign investments into Vietnam.
The total capital of newly registered, additional
funded, capital - contributed and equity invested
projetcs in the 11 months of 2017 was USD 33.09
billion, increased by 82.8% to the same period
of 2016. It should be noticed that the disbursed
FDI was USD 16 billion and is expected to reach
USD 17.5 – 18 billion the whole year, which
means an increase of 12 – 15% as opposed to
the previous year.
To sum up, from 1988 till now, FDI inflows
to Vietnam have experienced fluctuations but
tended to increase. Nevertheless, there is a
need to proper policies on a more stable capital
attraction and more efficient FDI management
and use in order to improve FDI disbursement
ratio to the total registered capital.
FDI inflows to Vietnam by investment partners
In the period of 1988 – 2016, 78 countries
and territories invested their FDI capital into
Vietnam, in which the biggest FDI partner was
Korea with the total registered capital of USD
50,553.9 million. Though obtaining capital per
project of USD 8.79 million which was lower than
the average capital per
FDI project in Vietnam
(USD 13 million),
FDI
en t e rpr e i s e s
from Korea such as
Samsung, LG and
Lotte… have played an
increasingly important
role in Vietnam’s
economy.
The second biggest
partner of Vietnam
was Japanwith famous
brands like Honda,
Toyota… with 3,292
projects, obtaining the
TABLE 1: REGISTERED FDI BY ECONOMIC SECTORS FROM 1988 TO 2016
(cumulative projects valid to December 31
st
2016)
No.
Economic sector
Number
of projects
(projects)
Total registered
capital
(USD million)
Proportion
(%)
Total
22.594
293.700,4
100,00
1 Agriculture, forestry and aquaculture
522
3.573,8
1,22
2 Industry and construction
13.312
199.781,8
68,02
2.1 Mining
104
3.497,9
1,19
2.2 Processing and Manufacturing
11.716
172.717,6
58,81
2.3 Generation and distribution of electricity,
gases, hot water, steam and air-conditioner
108
12.907,6
4,39
2.4 Construction
1.384
10.658,7
3,63
3 Services
8.760
90.344,8
30,76
Source: General Statistics Office (GSO)
