Vietnam FDI and Economic Roundup for January 2015 - Vietnam Briefing News
HANOI – Vietnam’s Foreign Investment Department has stated that total foreign direct investment (FDI) in the first month of 2015 reached US$663.44 million, increasing 67.1 percent compared to the same period last year.
January saw a total of 44 newly registered FDI projects, worth US$392.18 million, up 85.5 percent compared to the same period in 2014. The month also saw 19 new projects break ground – these projects were worth a total US$271.26 million, up 45.8 percent compared to the same period last year.
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The three top investment sectors for January were:
- Manufacturing – with a total of US$605.69 million
- Trading – with a total of US$30.79 million
- Energy and water distribution – with a total of US$10.44 million
Investment into Vietnam came from fifteen different nations, the top three of which were:
- British Virgin Islands – with a total of US$331.32 in FDI (49.9 percent)
- South Korea with a total of US$110.25 million (16.6 percent)
- Hong Kong with a total of US$105.5 million (15.9 percent)
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While, international enterprises invested into 13 different regions in Vietnam during January, there were clear FDI favorites:
- Ho Chi Minh City (HCMC) – with a total US$347.2 million (52.3 percent), comprising 20 newly-registered projects and four projects which increased their capital
- Binh Duong – with a total US$100 million (15 percent)
- Hai Phong – with a total of US$96.72 million (14.5 percent)
Key FDI projects for January included:
- Worldon Ltd Co – investing US$300 million into HCMC
- Regina Miracle International – which increased its investment by US$90 million in Hai Phong
- Taekwang MTC – which increased its investment by US$43.2 million in Dong Nai
January 2015 Economic Roundup
In addition to the good news of increases in FDI, input prices at Vietnamese manufacturing firms have decreased at a substantial pace thanks to reduced fuel costs resulting from the falling oil price in global markets. Output prices were also lower as a result of the reductions in input costs – charges decreased for the fourth month running and to the greatest extent in two and a half years.
Vietnam’s January export turnover reached US$8.49 billion, up 8.2 percent compared to the same period in 2014. FDI import turnover also gained US$7.8 million, an increase of 57.8 percent. However, according to HSBC’s Purchasing Managers’ Index, both output and new export orders, while still increasing, are growing at a slower pace compared to December of last year.
In additional good news, employment has risen sharply and is at one of the fastest growing rates in the past 17 months, helping to boost purchasing activity within the country.
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