According to the Foreign Investment Agency under the Ministry of Planning and Investment, the country lured US$1.2 billion in fresh FDI capital in February, a whopping rise compared with US$40 million in the first month of the year. The figure includes more than US$881 million in registered capital of 40 newly-licensed projects and US$312 million in increased capital of 20 operational projects.

The sharp rise in FDI attraction is mainly attributed to the US$570-million auto tire plant in the northern city of Haiphong invested by the Japan-based Bridgestone Corporation. The project has pushed the manufacturing sector to the lead in attracting FDI capital over the past two months, with US$994.3 million in 26 new projects and US$210.5 million in 21 operational projects.

Meanwhile, the FDI inflow to the property market continues to shrink with only one project with registered capital of US$100,000 licensed.

Japan has become the leading foreign investor in Vietnam in February with total investment capital of nearly US$1.1 billion, accounting for 87.5% of the total.

Despite the positive sign, the newly-registered and increased FDI capital in the first two months totaled only US$1.23 billion, down 55% year-on-year.

Meanwhile, FDI disbursement has seen better performance when the actualized FDI sum in the first two months is estimated at US$1 billion, 91% as much as the same period last year.

According to the Ministry of Planning and Investment, this year investment authorities will focus on the efficiency of FDI disbursement and the feasibility of FDI projects rather than the amount of registered FDI capital. The ministry has set the target of attracting US$15-16 billion in fresh FDI capital and US$11 billion in disbursed FDI capital this year.

Source: The Saigon Times Weekly