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FDI in 2017: Japan exceeds South Korea, China emerges

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Investments from Japan, South Korea and China were the most significant players in FDI (foreign direct investment) in 2017.

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Investors committed $35.88 billion worth of FDI in 2017


According to FIA, investors committed $35.88 billion worth of FDI in 2017, while disbursed capital reached $17.5 billion, which represented increases of 44.4 percent and 10.8 percent, respectively, compared with 2016. As such, the FDI capital reached a 10-year high in 2017.

Japan successfully vied with South Korea for No 1 position

Japan and South Korea topped the list of 115 foreign direct investors in Vietnam. The investors from the two countries poured 60 percent of total FDI in Vietnam. 

$9.11 billion worth of investment capital was pledged by Japan, which accounted for 25.4 percent, and $8.49 percent by South Korea, or 23.7 percent.

Japan in 2017 surpassed South Korea to become the biggest foreign direct investor in Vietnam. 

However, analysts commented that the No 1 position held by Japan is just temporary. Japan unexpectedly jumped into the No 1 position thanks to the two huge BOT thermopower projects in Thanh Hoa and Khanh Hoa. The projects alone have  investment capital of $5.37 billion.

Singapore is among the biggest investors with $5.3 billion worth of capital committed in 2017. The ‘big three’ Japan, South Korea and Singapore alone make up more than 70 percent of total FDI in Vietnam.

FIA’s (Foreign Investment Agency) report showed the unexpected decrease in the amount of capital flowing into the manufacturing and processing industries to $15.87 billion, which accounted for 44.2 percent of total capital, much lower than the average 70 percent in the years before.

However, analysts believe that the capital flow into the industries will increase again as it takes time to inspect investment projects before licensing.

Meanwhile, the investment in the real estate sector accounts for a large proportion of the total FDI, reaching $3.05 billion in 2017, or 8.5 percent of total FDI capital. 

The figure is believed to continue to rise as Vietnam promises higher profits than other markets.

China emerging

The fourth position on the list of biggest foreign investors belongs to China, which was a surprise. It was never among top five foreign investors in the past.

In 2017, the country committed $2.17 billion worth of investment capital in Vietnam. If only considering newly registered projects, China would be above Singapore.

The Chinese Consul General in HCMC Chen De Hai, at a meeting to introduce Chinese investment in Vietnam in December 2017, confirmed that Chinese have been increasing their investments in Vietnam since 2016.



Source: VietNamNet

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