FDI inflow declines but disbursement increases

Hanoi, March 3 (VNA) - Total foreign direct investment (FDI) in Vietnam reached nearly 1.2 billion USD in the first two months of this year, equivalent to just 77.5 percent of that in the same period last year. According to the Foreign Investment Agency's report, capital disbursed in the period increased by 7.1 percent against last year's same period to reach 1.2 billion USD. Further, during this period, 148 new FDI projects were licensed, with a combined registered capital of 712.29 million USD, while 60 existing projects increased their registered capital, being valued at 480.5 million USD. FDI was directed into 13 sectors, in which processing and manufacturing remained the most attractive industry, drawing 952 million USD into 65 new FDI projects and 40 existing projects. Meanwhile, real estate came in second, attracting 111.43 million USD in FDI during the period or 9.3 percent of the total FDI into the country, followed by retail and repairing services, with 71.22 million USD. British Virgin Islands, with 351.39 million USD in capital, led 28 countries and territories injecting capital into Vietnam, and accounted for 29.5 percent, followed by the Republic of Korea and Hong Kong (China). HCM City was the most attractive destination for FDI among 23 provinces and cities receiving FDI in the first two months of this year, with a FDI inflow of 497.9 million USD into the southern hub, accounting for 41.7 percent. Also, northern Hai Phong province attracted 213.86 million USD in FDI, or 17.9 percent, ranking the second most attractive destination, as southern Binh Duong province ranked third with 134.04 million USD in FDI. Of note, the FDI sector ran a trade surplus of 2.03 billion USD in the period, statistics showed.-VNA