Accumulated as of December 20th, 2020, the whole country had 33.070 valid projects with total registered capital of 384 billion USD. The accumulated realized capital of FDI projects was estimated at 231.86 billion USD, equaling 60.4% total valid registered investment capital.
Details are as follows:
1. FDI attraction in 2020
1.1. FDI performance:
Realized capital:
As of December 20th, 2020, FDI projects were estimated to disburse 19.98 billion USD ,or 98% compared with the same period last year.
Import and export performance:
Export: Export turnover of the foreign investment sector continued to rise and increase compared to eleven months of 2020. Export (including crude oil) reached nearly 202.4 billion USD, a 9.2 % rise over the same period last year, accounting for 72.3% of export turnover. Export excluding crude oil was 200.8 billion USD, a rise of 9.6%over the same period last year, accounting for 71.7% of the country's export turnover in 2020.
Imports: Imports of foreign investment sector attained 167.8 billion USD, up by 12.3% over the same period last year and accounting for 64.3% of the country's import turnover.
Generally, in 2020, the FDI sector still saw a trade surplus of 34.6 billion USD including crude oil and a trade surplus of 33 billion USD excluding crude oil, offsetting the trade deficit of 15.6 billion USD of the domestic sector, helping the country to gain a trade surplus of 19 billion USD.
1.2.Investment registration
Newly registered capital: There were 2,523 new projects granted with investment certificates (a year-on-year decrease of 35%). Total registered capital reached 14.65 billion USD(a year-on-year decrease of 12.5%).
Adjusted capital: There were 1,140 times of projects registered for adjustment of investment capital (a year-on-year decrease of 17.5%). Total additional registered capital reached over 6.4 billion USD (up by 10.6% compared with the same period last year).
Capital contribution and share purchase: There were 6,141 times of capital contribution and share purchase by foreign investors (a year-on-year fall of 37.6%). The total value of capital contribution was worth 7.47 billion USD (a decline of 51.7% compared to same period last year). The proportion of capital contribution and share purchase in the total investment capital also decreased compared to the same period last year (from 40.7% in 2019 to 26.2% in 2020).
By sector:
Foreign investors have invested in 19 key sectors, of which the processing and manufacturing led with total investment capital of almost 13.6 billion USD, accounting for 47.7% of the total registered investment capital. Electricity production and distribution ranked second with investment capital of over 5.1 billion USD, accounting for 18% of total registered investment capital. It is followed by the real estate business, wholesale and retail with the total registered capital of nearly 4.2 billion USD and1.6 billion USD. The rest are other sectors.
By counterpart:
There were 112 countries and territories investing in Vietnam in 2020. Singapore led the list with total investment capital of almost 9 billion USD, accounting for 31.5% of total investment capital in Vietnam; South Korea ranked second with investment of 3.9 billion USD, accounting for13.8% of total investment capital. China ranked third with registered investment capital of 2.46 billion USD, accounting for 8.6% of total investment capital. Next were Japan, Taiwan, Thailand, etc.
In terms of the number of new projects, Korea ranked first (609 projects); China ranked second (342 projects);Japan ranked third (272 projects); followed by Hong Kong (211 projects).
By location:
The foreign investors have invested in 60provinces and cities nationwide in 2020. Ho Chi Minh city led the list with a large project worth 4.36 billion USD, accounting for 15.3% of total registered investment capital. (of which investment was mainly in the form of capital contribution and share purchase, accounting for 72.9% of the City’s total registered investment capital). Bac Lieu ranked second with one large project with total registered capital of 4 billion USD, accounting for 14% of total investment capital. Hanoi ranked third with nearly 3.6 billion USD, accounting for 12.6% of total investment capital (of which investment in the form of project expansion and capital contribution and share purchase accounted for 35.2% and 45% of the city’s total investment capital, respectively). Next are Ba Ria - Vung Tau, Binh Duong, Hai Phong, and so on.
Regarding the number of new projects, Ho Chi Minh City still led the list (950 projects); Hanoi ranked second (496 projects);Bac Ninh ranked third (153 projects).
Some major projects in 2020:
(1) Liquefied Natural Gas (LNG) Plant Project under the operation of Bac Lieu LNG Thermal Power Centre (invested by Singaporean investors) having total registered investment capital of 4 billion USD with the goal of producing electricity from liquefied natural gas (granted with an Investment Certificate on January 16th, 2020).
(2) The South Vietnam Petrochemical Complex Project (invested by Thai investors) in Ba Ria - Vung Tau with an increase of adjusted investment capital by 1,386 billion USD (adjusted Investment Certificate dated April 18th, 2020).
(3) Project of West of West Lake Urban Residence Centre (invested by South Korean investors) with expanded investment capital by 774 million USD (adjusted Investment Certificate issued on June 29th, 2020).
(4) Project of Pegatron Vietnam (invested by Taiwanese investors) having capital of 481 million USD with the goal of manufacturing gaming device, phone accessories, smart speakers, game controllers, and computers of all kinds in Hai Phong (granted with a certificate of investment on October 30th, 2020).
(5) Radian Jinyu Tire Manufacturing Plant Project (Vietnam) with total investment of 300 million USD aimed at producing full steel TBR tires invested by Chinese investors in Tay Ninh (granted with an Investment Certificate on January 21st, 2020).
2.Evaluation of the FDI performance in 2020
- Production and business activities were affected by the Covid-19 pandemic. Realized investment capital of FDI projects in 2020 continued to decrease compared to the same period last year, but the stagnation was lower (a decline of 2% compared to 2019). Many foreign-invested enterprises are gradually recovering, maintaining good business and production activities and expanding projects. The highlight in 2020 was the adjusted investment capital increased by 10.6% over the same period last year.
- There are still a lot of foreign investors interested, trusting and having the need to invest into Vietnam. However, due to the effects of the Covid-19, investors’ travel as well as new investment decisions and the expansion of the scale of FDI projects continue to be affected. The number of new projects, capital adjustment and capital contribution and share purchase by foreign investors decreased compared to the same period last year. However, the percentage of decrease is lower. Along with the good control of the Covid-19 in Vietnam, the number of new projects and capital adjustments increased in the last months of the year (The number of new projects in the fourth quarter of 2020 increased by 9% compared to the third quarter of 2020. The number of projects with capital adjustment also increased by 26%, 18% and 45% respectively compared to the third quarter, second quarter and first quarter of 2020). In the context of a sharp decline in global investment due to the effects of the Covid-19, this result is better than many other countries, showing the attractiveness of Vietnam in the eyes of international investors.
- Although the impact of the epidemic is extremely heavy on the economies of many countries, the balance of trade in goods in 2020 in Vietnam continued to have a trade surplus of nearly 19 billion USD, of which foreign invested sector (including crude oil) saw a trade surplus of 34.6 billion USD; trade deficit of the domestic economic sector was 15.6 billion USD.
3. Accumulated foreign investment as of December 20th,2020
Accumulated as of December 20th,2020, the whole country had 33.070 valid projects with total registered capital of nearly 384 billion USD. The accumulated realized capital of FDI projects was estimated at 231.86 billion USD, equaling 60.4% of the total valid registered capital.
- By sector:
Foreign investors have invested in 19/21 sectors in the national economic classification system, of which the processing and manufacturing sector accounted for the highest proportion with 226.5 billion USD, accounting for nearly 59% of total investment capital, followed by real estate business with 60.1billion USD (accounting for 15.6% of total investment capital); electricity production and distribution with 28.9 billion USD (accounting for 7.5% of total investment capital).
- By counterpart:
Up to now, there are 139 countries and territories having valid investment projects in Vietnam . Of which, Korea ranked first with a total registered capital of over 70.6 billion USD (accounting for 18.4% of total investment capital). Japan ranked second with nearly 60.3 billion USD (capturing 15, 7 % of total investment capital), followed by Singapore Taiwan and Hong Kong.
- By location:
FDI has been present in all 63 provinces and cities nationwide, of which Ho Chi Minh City is still the leading city in attracting foreign investment with more than 48.2 billion (accounting for 12.5% total investment); followed by Hanoi with 35.9 billion USD (accounting for 9.3% of total investment capital); Binh Duong with roughly 35.5 billion USD (accounting for 9.2% of total investment capital).
(According to Foreign Investment - Ministry of Planning and Investment)
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