South Korea Still Leads FDI Race in Vietnam

Tuan Minh

16:46 26/08/2017

A bilateral free trade agreement enabled South Korea to retain is crown as the biggest foreign investor in Vietnam.

South Korea Still Leads FDI Race in Vietnam

FDI inflows from South Korea into Vietnam remain robust.

South Korea is taking the lead in the race for the largest direct foreign investor in Vietnam thanks to the benefits of a bilateral free trade agreement (FTA) that came into enforcement in December 2015.
Data of the Foreign Investment Agency (FIA) under the Vietnamese Ministry of Planning and Investment, foreign direct investment (FDI) commitments by South Korea amounted to $6.02 billion between January and August, accounting 25.7% of total FDI in the Southeast Asian country.
This amount put South Korea at the top among 98 countries and territories investing in Vietnam in the eight-month period.
South Korea has emerged as the biggest investor in Vietnam over the past three years and the race for the FDI crown among South Korea, Japan, China and Singapore has been tight into 2017. South Korea lost the title to the remaining three nations in January, February and June this year.
The Korea-Vietnam FTA has been a big catalyst for the Northeast Asian country to retain its top investment position in Vietnam.
With the duties to be reduced under the trade agreement and incentives to be offered by Vietnam, sectors such as energy, hi-tech agriculture, environment and manufacturing will likely attract more investment from South Korea. This in turn will enable it to remain the biggest investors in the years to come, an FIA official said in April this year.
In the eight-month period, Japan came closely after South Korea with FDI pledges of $5.74 billion. Singapore ranked third with $3.92 billion.
FIA statistics showed that FDI approvals in Vietnam reached $23.36 billion in the first eight months of this year, up 45.1% from the same period last year, with a half running to the manufacturing and processing sector.
Disbursed FDI in the country increased 5.1% year on year to $10.3 billion, the agency said.



Từ khóa: FDI, FIA