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The flows of foreign direct investment (FDI) into Vietnam are forecast to increase in the second half of the year as the downturn has been improved in recent months, experts have said.
In the first six months of this year, the total amount of FDI attracted into Vietnam reached USD 13.43 billion, a decrease of only 4.3 percent year on year, a lower level than a reduction of 7.3 percent in the five months, 17.9 percent in the four months, and 38.8 percent in the three months.
While the added capital fell sharply, the newly-registered capital increased strongly at 31.3 percent to USD 6.94 billion, and the amount poured in capital contribution and share purchase deals also surged 76.8 percent to over USD 4 billion.
According to Do Nhat Hoang, Director of the Foreign Investment Agency under the Ministry of Planning and Investment (MPI), in the first half of this year, USD 10.2 billion of FDI had been disbursed, up 0.5 percent year on year.
He said the increase in the disbursement rate showed the efficiency of the Government’s efforts to support businesses in implementing their projects.
According to the MPI’s statistics, investors from Taiwan (China) are flocking to Vietnam, especially in the fields of electricity, electronics, technology and electric vehicles. Specifically, Polytex Far Eastern Vietnam Ltd. plans to invest an additional USD 250 million in Vietnam in the third quarter, raising its total investment to over USD 1 billion. Meanwhile, Cheng Loong papermaker is implementing the second phase of its USD 1billion-project in the country.
Meanwhile, Xiamen Hithium Energy Storage Technology and Growatt New Energy from China are also reportedly considering to invest a total of USD 1 billion in Vietnam.
These are positive news and, if realized, the FDI flows into Vietnam will increase remarkably in the coming time, experts said.- (VLLF)