There is being a shift in FDI inflows into Vietnam. More and more FDI enterprises pour quality capital into Vietnam instead of by the reason looking for natural resources, low labor cost, etc as before.
With 2,589 foreign direct investment (FDI) projects in Vietnam with a capital size of 31.44 billion USD (accumulated to December 20, 2018), Taiwan is currently ranked 4th out of 130 countries and regions, has invested in Vietnam over the past 30 years.
US businesses investing in China are also intending to shift their investments outside of China. Sharing the story on the sidelines of the APEC Business Forum taking place in Papua New Guinea from November 17-18. Mr. Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) said there are about one third the number of US businesses that have moved or are intending to shift their investment out of China due to tensions from the US-China trade war.
Not only that, the VCCI representative also said that Vietnam has become a much-mentioned name in Papua New Guinea after PwC published its business investigation report. Accordingly, Vietnam has surpassed China to become the economy with the most prospect of FDI attraction, standing on countries like the US, Australia, Thailand, etc.
Comments on FDI inflows from Taiwan into Vietnam in the coming time. The process of moving factories out of China will take time, so Taiwanese businesses will, in the short term, boost orders to Taiwanese businesses in other markets, including Vietnam. Therefore, more Taiwanese projects would be expanded in Vietnam.
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It is estimated that in 2018, FDI exported surplus of USD 32.8 billion including crude oil and trade surplus of USD 30.5 billion excluding crude oil. The latest report of the Foreign Investment Agency (Ministry of Planning and Investment) said that in 2018, the export of FDI enterprises (including crude oil) reached 175.5 billion USD, up 12.9% compared to with the same period of 2017.
This level of export has accounted for nearly 71.7% of total export turnover of Vietnam. In particular, exports excluding crude oil reached 173.2 billion USD, up 13.6% over the same period in 2017 and accounting for 70.7% of export turnover. In terms of imports, in 2018 FDI enterprises imported 142.7 billion USD, up 11.6% over the same period in 2017 and accounted for 60.1% of Vietnam’s import turnover.
Thus, in general, the foreign invested sector saw a trade surplus of 32.8 billion USD, including crude oil and trade surplus of 30.5 billion USD, excluding crude oil in 2018.
Foreign investors have been present in all 63 provinces and cities in the country, in which Ho Chi Minh City is still the leading province in attracting FDI with 45 billion USD (accounting for 13.2% of total investment capital), followed by Hanoi with US $ 33.1 billion (accounting for 9.7% of the total investment capital), Binh Duong with US $ 31.7 billion (accounting for 9.3% of total investment capital).
Source: Rong Viet Securities