HCMC – The country’s foreign direct investment (FDI) approvals in January totaled a mere US$37.3 million, representing a meager 2.5% of the figure recorded a year ago, according to the Foreign Investment Agency under the Ministry of Planning and Investment.
The first month of the year saw 25 fresh projects licensed with total capital pledges of US$29.5 million, equivalent to 33.8% of the number and 2.4% of the capital posted in the same period last year. Meanwhile, five operational FDI projects registered additional capital of US$7.8 million to expand investment.
Such poor FDI attraction is partly attributable to the long Lunar New Year holiday in January, which significantly reduced the working time of the investment authorities. On the other hand, in the first month of last year a billion-dollar project invested by America’s First Solar Group to build a solar power panels plant in HCMC sent new FDI approvals surging.
Still, the decline in both newly registered and added capital shows signs of a tough year ahead for FDI attraction.
There are only 12 localities nationwide reporting newly licensed FDI projects in January. HCMC attracted the most capital, at US$13 million, or 44.2% of the total newly pledged capital, far surpassing Thanh Hoa at second place with US$3.5 million, followed by Ha Nam with US$3.2 million, and Hung Yen with US$3 million.
Ba Ria-Vung Tau used to lure hefty FDI capital in January of previous years, but this year it recorded no fresh FDI.
Among the 11 countries with investment projects licensed last month, France is the biggest investor with US$10 million, followed by Japan with US$8.1 million, South Korea with US$5.4 million, and Singapore with US$2 million.
The month’s FDI disbursement is estimated at US$400 million, down 4.8% over the same period last year.
The Ministry of Planning and Investment has set a goal of attracting US$15-16 billion of FDI this year and having US$10-11 billion disbursed, compared to the US$11 billion recorded in 2011.
Though the target of US$11.5 million was not achieved, the FDI disbursements last year were appreciated by the Foreign Investment Agency given the continued global and local economic woes.
