More capital from tax havens poured into Vietnam
A report of the Foreign Investment Agency (FIA) showed that Vietnam attracted $13 billion worth of foreign direct investment (FDI) in the first seven months of the year, an increase of 47 percent over the same period last year. The capital, including $8.7 billion worth of newly registered and $4.3 billion worth of additionally invested capiral, will be used to develop 1,408 projects.
South Korea tops the list of the largest foreign direct investors as investors from the country plan to pour $4 billion more into Vietnam, raising total investment capital registered to $49 billion.
However, analysts noted the strong rise in FDI from countries and territories known as the ‘tax havens’ such as British Virgin Islands, Singapore, Hong Kong, Cayman, Bermuda, Panama, Jersey, Luxembourg, New Zealand, Bahamas, Panama, Delaware State in the US, Switzerland and Ireland.
Foreign businesses have invested in their own companies but have also contributed capital to thousands of Vietnamese companies.
Singaporean investors have outstripped Japan to become the second largest foreign investor in Vietnam with registered investment capital of $1.4 billion and 152 projects in first seven months of the year and $32 billion so far. The figure was $358 million in the same period last year, as Singapore ranked the eighth largest foreign investor.
The capital from Hong Kong has soared by 40 percent to $1 billion in the first seven months of the year, which has put it into fifth position in the list of largest foreign investors.
To date, Hong Kong’s investors have registered $15.8 billion worth of investment and implemented 1.064 projects in Vietnam.
Meanwhile, the famous tax haven – British Virgin Islands – invested $447 million in the first seven months of the year, raising its total investment capital to $19.4 billion.
The investors from Cayman Islands registered $285 million worth of capital, and Luxembourg $207 million, raising total investment capital to $6.7 billion and $2 billion, respectively.
Vietnam has also witnessed a strong wave of foreign investors contributing capital and buying stakes in enterprises.
Since July 1, 2015, foreign investors have contributed capital to 3,141 businesses and conducted share transfer deals worth $2.9 billion. Real estate, retail and air transport are the most attractive to foreign investors.
Some large projects licensed in the first seven months of the year:
1.LG Display Hai Phong, registered by South Korean LG Display, $1.5 billion. OLED screens for mobile devices.
2.Amata Long Thanh City in Dong Nai province, $309.3 million, registered by a Thai investor.
3.Samsung Research & Development Center, $300 million, registered by Samsung Electronics Vietnam.
4.The wind power plant in Tra Vinh (second phase), $247.6 million.
5.Midtown project, $225.62 million, to be developed by an investor from Cayman Islands.
