Registered foreign direct investment is exploding in Vietnam in January 2020, thanks to massive capital inflows from Singapore.
As of January 20, the registered inflow of foreign direct investment (FDI) to Vietnam was $5.33 billion, suddenly jumping by 179.5 per cent on-year, while disbursed FDI was $1.6 billion, increasing by 3.2 per cent on-year.
Most notably, more than 75 per cent of the total registered capital was made up of $4 billion registered capital for a liquefied natural gas-fired power plant by Singapore’s Delta Offshore Energy Pte., Ltd., according to the macro research by KIS Vietnam Securities Corporation (KIS).
In January, foreigners invested in 17 sectors, primarily focusing on the electricity sector with the registered capital of $4.04 billion, accounting for 75.8 per cent of the total registered capital. Processing came second with a registered capital of $860 million, accounting for 16.07 per cent. Professionals and retail took the third and fourth places, equivalent to 2.23 and 2.21 per cent of the total, respectively.
59 countries and territories were investing in Vietnam in the first month of 2020. Surprisingly, Singapore became the largest investor with the massive registered capital inflow of $4.16 billion, accounting for 78.09 per cent of the total registered FDI. South Korea ranked second with $270 million (4.96 per cent of the total). Hong Kong (China) stood in the third position with $210 million (3.98 per cent). China and Japan were the fourth- and fifth-largest investors with $160 million and $130 million.
Source: VIR
