Report on foreign direct investment in the 4 months of 2021
As of April 20th, 2021, the total newly registered capital, adjusted capital, and capital contribution or share purchase by foreign investors reached 12.25 billion USD, equaling 99.3% compared to the same period last year. Capital generated by FDI projects was estimated at 5.5 billion USD, up by 6.8% over the same period last year.
Accumulated as of April 20th, 2021, the whole country had 33,463 valid projects with total registered capital of 394.9 billion USD. The accumulated realized capital of foreign direct investment projects was estimated at 238.36 billion USD, equivalent to 60.4% of total valid registered investment capital.
Details are as follows:
1. FDI attraction in the first 4 months of 2021
1.1. FDI performance:
Realized capital:
As of April 21st, 2021, foreign direct investment projects were estimated to disburse 5.5 billion USD, a rise of 6.8% compared with the same period last year.
Import and export performance:
Export: Export turnover of the foreign investment sector continued to leap in the first 4 months of 2021. Export (including crude oil) reached more than 80.6 billion USD, up by 38.7% compared with the same period last year, accounting for 78% of export turnover. Export (excluding crude oil) was over 80.1 billion USD, a rise of 39.2% over the same period last year, accounting for 77.5% of the country's export turnover.
Import: Imports of foreign investment sector attained over 66.2 billion USD, up by 32.8% over the same period last year and accounting for 65.2% of the country's import turnover.
In the first four months of 2021, the FDI sector saw a trade surplus of around 14.4 billion USD including crude oil and 13.9 billion USD excluding crude oil, offsetting the trade deficit of approximately 12.5 billion USD of the domestic sector, helping the country to gain a trade surplus about 1.9 billion USD.
1.2. Investment registration
As of April 20th, 2021, total newly registered capital, adjusted capital, and capital contribution or share purchase by foreign investors reached 12.25 billion USD, or 99.3% compared to the same period last year.
Of which:
Newly registered capital: There were 451 new projects granted with investment registration certificates (a year-on-year plummet of 54.2%). Total registered capital reached about 8.5 billion USD (a year-on-year increase of 20.7%).
Adjusted capital: There were 263 projects registered for adjustment of investment capital (a year-on-year decrease of 21.5%). Total additional registered capital reached over 2.7 billion USD (a decrease of 10.6% compared to the same period).
Capital contribution and share purchase: There were 1151 capital contribution and share purchase by foreign investors (a year-on-year decline of 64.1%). The total value of capital contribution was worth over 1 billion USD (a year-on-year decline of 57.8%).
(Detailed data tables in Appendix I attached).
By sector:
Foreign investors had invested in 17 sectors, of which the processing and manufacturing led with total investment capital of nearly 5.2 billion USD, accounting for 42.2% of total registered investment capital. Electricity production and distribution ranked second with investment capital of about 5.1 billion USD, accounting for 41.3% of total registered investment capital. It was followed by the real estate business, wholesale and retail with the total registered capital of about 778 million USD and 464 million USD, respectively. The rest were other sectors.
By counterpart:
There were 67 countries and territories investing in Vietnam in the first four months of 2021. Singapore led the list with total investment capital of over 4.8 billion USD, accounting for 39.6% of total investment capital in Vietnam; Japan ranked second with investment capital of over 2.5 billion USD, accounting for 20.5% of total investment capital (in which, investment capital of Singapore and Japan was mainly in the form of new investment, accounting for 91.1% and 71.5% of total investment capital of each country subsequently). South Korea ranked third with registered investment capital of nearly 1.5 billion USD, accounting for 12.1% of total investment capital. Next were China, Hong Kong, United State of America, and so on.
By location:
The foreign investors had invested in 53 provinces and cities nationwide in the first four months of 2021. Long An led the list with total registered investment capital of approximately 3.3 billion USD, accounting for 26.9% of total investment capital. Can Tho ranked second with total registered capital of 1.3 billion USD, accounting for 10.7% of total investment capital. Ho Chi Minh City ranked third with 1.1 billion USD, or 9.3% of total investment capital. Next were Hai Phong, Bac Giang, Quang Ninh, and so on.
(Detailed data tables in Appendix II attached).
Some major projects in the first four months of 2021:
(1) Long An I and II LNG Power Plant Project (invested by Singaporean investors) having total registered capital of more than 3.1 billion USD, with the goal of transmitting, distributing, and producing electricity in Long An (granted with a certificate of investment on March 19th, 2021).
(2) O Mon II Thermal Power Plant Factory (invested by Japanese investors) in Can Tho, with total investment capital of 1.31 billion USD, aimed to create a thermal power factory for electricity supply for the regional and national power system (granted with a certificate of investment on January 22nd, 2021)
(3) LG Display Project (invested by Korean investors) in Hai Phong with investment capital adjusted to increase by about 750 million USD (granted with an amended investment certificate on February 4th, 2021).
(4) Jinko Solar PV Vietnam Solar Cell Technology Project (invested by Hong Kong investors) in Quang Ninh, with total investment capital of 498 million USD, with the goal of producing solar panels and electrical equipment (granted with a certificate of investment on March 29th, 2021).
(5) Radian Tire Manufacturing Plant Project (invested by Chinese investors) in Tay Ninh with investment capital adjusted to increase by about 312 million USD (granted with an amended investment certificate on January 6th, 2021).
2. Evaluation of the FDI performance in the 4 months of 2021.
- Several foreign invested enterprises have recovered and maintained to operate business after the impact of COVID-19 pandemic. The total foreign investment capital in the first four months of 2021 had increased by 6.8% compared to the same period.
- The number of newly registered capital continued to increase in the first four months, but the number of additional registered capital decreased by 10.6% over the same period in 2020 after continuously increasing in the first three months of the 2021 (because there was a petrochemical complex project in Southern Vietnam adjusted to increase the investment capital by 1.38 billion USD in April 2021).
- The average size of newly registered projects and adjusted capital projects both increased over the same period (a year-on-year increase from 6.9 million USD per newly registered project to 18.7 million per newly registered project, and a year-on-year increase from 9.2 million USD per adjusted capital project to 10.4 million USD per adjusted capital project).
- Import and export of the FDI sector continued to leap in the first four months of 2021. The FDI sector had a trade surplus of about 14.4 billion USD (including crude oil), offsetting the trade deficit of nearly 12.5 billion USD of domestic business sector, help the country to gain a trade surplus of approximately 1.9 billion USD.
3. Accumulated foreign investment as of April 20th, 2021
Accumulated as of April 20th, 2021, the whole country had 33,463 valid projects with total registered capital of nearly 394.9 billion USD. The accumulated realized capital of FDI projects was estimated at 238.36 billion USD, equaling 60.4% of total valid registered capital.
- By sector: Foreign investors have invested in 19/21 sectors in the national economic classification system, in which the processing and manufacturing sector accounted for the highest proportion with almost 231.2 billion USD, accounting for 58.5% of total investment capital. Followed is real estate business with 60.9 billion USD (or 15.4% of total investment capital); electricity production and distribution with 33.6 billion USD (or 8.5% of total investment capital).
- By counterpart: In April 2021, there are 140 countries having valid investment projects in Vietnam because of the new project from Congo investor. In which, South Korea ranked first with a total registered capital of 71.6 billion USD (accounting for 18.1% of total investment capital). Japan ranked second with 62.9 billion USD (or 15.9% of total investment capital). Next were Singapore, Taiwan, and Hong Kong.
- By location: FDI has been present in all 63 provinces and cities nationwide, of which Ho Chi Minh City remains the leading province in attracting foreign investment with over 48.9 billion USD (accounting for 12.4% of total investment), followed by Hanoi with 36.4 billion USD (or 9.2% of total investment capital), Binh Duong with nearly 35.9 billion USD (or 9.1% of total investment capital)./.
Quoted from Ministry of Planning and Investment's website.