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| A garment factory of Taiwan-invested Tainan Enterprises Vietnam in Long An Province (Photo: VNA) |
These positive figures showed that foreign-invested enterprises have been constantly recovering and expanding their production and business activities in Vietnam, FIA said in its report.
However, foreign investment inflows into Vietnam saw a yearly decline of 15.3% to over 18.7 billion USD in the nine-month period.
Up to 1,355 new foreign-invested projects were licensed during the period with a total registered capital of 7.12 billion USD, up 11.8% in the number of projects but down 43% in terms of capital.
The agency attributed the decline in newly-registered capital to difficulties encountered by foreign investors in coming to Vietnam to explore investment opportunities and fulfilling investment registration procedures in the last months of 2021 due to the State policies on controlling the COVID-19 pandemic. That have affected the number of new projects granted licences in the first months of 2022.
Also, the global market has been facing many fluctuations due to the influence of the geopolitical conflict in Europe, high inflation pressure, and supply chain disruptions, which have been negatively affecting the outflow of foreign investment from major economies, especially investment partners of Vietnam.
FIA also named a lack of large-scale projects worth over 100 million USD in the first months of 2022 compared to that of 2021 as one of the major reasons. These projects including Long An 1 and 2 LNG power plants worth a combined over 3.2 billion USD and O Mon 2 thermal power plant valued at above 1.3 billion USD contributed 62.3% of the total capital pledged in the nine months of 2021.
Meanwhile, the first nine months of this year saw few foreign-invested projects with a scale of over 100 million USD, and these projects accounted for only 37.2% of the period's total registered investment capital.
In another bright spot, capital added by foreign businesses to 769 operating projects in the country surged 30% to 8.3 billion USD. That has demonstrated their great confidence in Vietnam's economy and its investment climate, according to the agency.
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| FDI enterprises are expanding production and business activities in Vietnam. (Photo: baodautu.vn) |
Phan Huu Thang, Director of the Foreign Investment Research Centre, agreed. He told baodautu.vn that the success of the large-scale foreign enterprises in Vietnam would help attract other ones to the country.
At the same time, foreign investor capital contributions and share purchases also recorded a yearly hike of 2% to 3.28 billion USD.
The processing and manufacturing sector lured the lion's share of FDI with over 12.1 billion USD, accounting for 65% of the country's total capital.
Real estate came next with 3.5 billion USD or 18.7%. Science and technology and wholesale and retail were the runners-up with 677 million USD and 620 million USD, respectively.
Singapore remained Vietnam's leading source of foreign investment with above 4.75 billion USD, making up 25.3% of the total FDI registered in the country.
The Republic of Korea followed with nearly 3.8 billion USD or 20.3%, and Japan with 1.9 billion USD or 10.2%.
The country's other major foreign investors were mainland China, Denmark and Hong Kong (China).
A survey conducted by the Ministry of Planning and Investment and the Vietnam Business Forum Alliance (VBF) in September 2022 showed that over 90% of FDI enterprises achieved medium and high business efficiency and financial status.
Most surveyed businesses expressed their optimism and confidence in Vietnam and committed to continue to expand investment in the country. Of them, 66% said they planned to enlarge their investment scale in 2023.
According to FIA Director Do Nhat Hoang, Vietnam expected good results in FDI attraction in 2022 and following years when countries have been gradually opening up their economies and adapting to the new normal conditions.
In addition, many international corporations and businesses have been looking for investment locations to diversify their supply chains and Vietnam has been evaluated by international organisations as an attractive and safe investment destination.
In the next two or three years, technology corporations still prioritise Vietnam as an investment or expansion location, especially in manufacturing and processing, technology pharmaceuticals and energy, Hoang told baodautu.vn.
In order to effectively catch up with this investment wave, Minister of Planning and Investment Nguyen Chi Dung emphasised the importance of preparing an adequate source of land, perfecting infrastructure and bettering the supply of energy and skilled labour.
Improving capacities of domestic enterprises so that they could participate in value chains while drawing up incentives and investment support packages to negotiate with strategic foreign investors should also be included.
In the long term, it would also be necessary to improve the business investment environment and speed up administrative reform, Dung said.
Typhoon Noru keeps central localities awake through the night
Leaders of the Frontline Steering Committee for response to Typhoon Noru as well as leaders of central localities stayed awake through the night of September 27 to keep updated on the developments of the storm and promptly give instructions to ensure safety for local people, as the storm swept through the region, reported Vietnam News Agency.
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| Typhoon Noru knocks down many trees in Da Nang city. (Photo: VNA) |
Deputy Prime Minister Le Van Thanh, head of the committee asked affected localities to review damages and quickly provide support to people in areas hard hit by the typhoon. On September 28 morning, the storm has weakened, and no major damage has been reported, he said, urging continued caution even after the typhoon has passed based on lessons from previous ones.
The storm has caused strong winds and torrential rains in Da Nang, Quang Nam, Quang Ngai, Quang Tri, Thua Thien Hue and Binh Dinh. It injured four people in Quang Tri.
The only fatality reported to date is a fisherman who went missing on September 26 while heading ashore to avoid the storm. His body has been found.
According to the Frontline Steering Committee, as of 4am on September 28, the storm's eye was between Da Nang and Quang Nam, boasting winds of up to 117km per hour.
According to the National Centre for Hydro-Meteorological Forecasting, in the next 12 hours, the storm will move westwards at speed of 20-25 km per hour before weakening into a low pressure. As of 4pm on September 28, it is forecast to be in the southern region of Laos, with winds of 39-49km per hour.
In the following 12-24 hours, the low pressure will continue to move west towards Thailand.
Vietnam grosses 77 billion USD from phone, component, and electronic exports
Vietnam raked in approximately 77 billion USD from the export of phones, components and computers, electronic products and spare parts during the past eight months of the year, reported the Voice of Vietnam according to the Ministry of Industry and Trade.
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| Vietnam raked in approximately 77 billion USD from the export of phones, components and computers, electronic products in eight months (Photo: dangcongsan.vn) |
The four major importers of phones and components from the nation include the United States, the EU, China, and the Republic of Korea (RoK), grossing a total turnover of roughly 27 billion USD throughout the reviewed period.
In fact, all major markets increased their imports of products from the Vietnamese market. Accordingly, the country’s export turnover of phones and components to the US, China, and the RoK surged by 48%, 11%, and 23% to 9.25 billion USD, 8.97 billion USD, and 3.88 billion USD, respectively. In addition, exports to the EU dropped by 5% to 4.61 billion USD against the same period from last year.
Recent years has seen Vietnam attract a large quantity of FDI into the production of phones, computers, and electronic components.
Many major electronics firms globally have developed a presence in Vietnam with high-tech production facilities such as Samsung, LG, Foxconn, Fukang Technology, and LG Display Hai Phong, making Vietnam ninth in terms of global exports of electronic products.
The country boasts many advantages in attracting FDI enterprises in the field of electronics thanks to the signing of several free trade agreements (FTAs), a factor which has created opportunities for many large electronics firms to expand their scale to utilise preferential tariffs in export activities.
US firm pours capital in cross-border e-commerce project in Binh Duong
Global growth investor Warburg Pincus with headquarters in New York, the US, has decided to invest in a cross-border e-commerce project in the southern province of Binh Duong, reported Vietnam News Agency.
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| A corner of Binh Duong city (Photo: VNA) |
Covering 75 hectares, the project will include high-tech factories, warehouse, customs bonded warehouse, showrooms and offices.
Charles R Kaye, director general of Warburg Pincus, said Binh Duong has achieved impressive results in economic development, especially successfully implementing the dual goal of COVID-19 prevention and control as well as resuming its economy.
He expressed his wish that the province will create favourable conditions for the firm so that the project will be carried out soon, saying that it is a major strategic project which he believes will elevate the position of the province in particular and Vietnam in general in the field of e-commerce.
Vo Van Minh, chairman of the provincial People’s Committee, committed to offering the best condition for the success of the project, contributing to the construction of Binh Duong smart city in the future.
The southern industrial hub of Binh Duong is a popular destination for foreign investors. As of September 15, the province was home to 4,069 foreign-invested projects with total registered capital of nearly 39.6 billion USD. Binh Duong is currently ranked 2nd in the country in attracting foreign direct investment, after Ho Chi Minh City.
It has attracted 2.6 billion USD in the first nine months of 2022. The US currently ranks 13th out of 65 countries and territories that have invested in the province with 131 projects, worth 1.3 billion USD./.