Huge additional FDI capital poured in 2012
The number of new projects is 1,100 with total pledges of US$7.85 billion, slipping more than 35% over the year-ago period.
However, there have been 435 projects registering to raise capital by an additional US$5.15 billion, up a mere 7.4% in the number of projects while the increased capital marks up 58.5% year-on-year.
The result of fresh FDI capital, albeit low, is in line with expectations of local experts due to the current global economic woes and the planning ministry shifting its focus to FDI disbursement rather than new FDI capital commitments.
However, that many operational FDI enterprises have expanded operations with capital volumes higher than in 2011 despite the ongoing economic slump is beyond all predictions. The steep rise is all the more astonishing when expanded projects are no longer subject to tax incentives at home like fresh ones.
FIA noticed that several giant companies have still continued to raise huge investment capital such as the project to expand production of Wintek Vietnam Limited Co. in the northern province of Bac Giang. The producer of touch screens for iPad and iPhone products has poured an additional US$870 million into the plant specializing in export products.
Another impressive case is the project of Samsung Electronics Vietnam Limited Co. in Bac Ninh Industrial Park with a capital increase worth US$830 million.
Experts said the phenomenon is a spotlight in luring foreign investment in 2012, now that the planning ministry does not attach much importance to newly-registered capital, but the quality of projects and their disbursement progress.
The expanded projects are in most cases carried out faster than new ones, since only companies doing good business will continue to expand investment.
FDI projects have disbursed an estimated US$10.46 billion in 2012, FIA said. Although the result decreases by a slight 4.9% compared to last year, it still remains high in the present difficulty conditions.
Regarding business operations, the foreign investment sector has posted strong growth, FIA said. For instance, export value of the FDI sector including oil is predicted to reach US$72.29 billion, rising 31.2% year-on-year and accounting for 63.07% of the country’s total export value.
Import spending of the sector was US$60.33 billion, picking up 23.5% year-on-year and making up 52.76% of the total import value. The FDI sector in all 2012 has had a trade surplus of US$11.96 billion.
Processing and manufacturing industries have captured great attention from foreign investors this year with 498 newly-registered projects. Meanwhile, the total fresh and additional FDI capital for the industries is US$9.1 billion, or nearly 70% of the total.
