Vietnam Jan-July FDI slips, longer-term pledges down sharply

Foreign investors poured an estimated $6.25 billion into projects in Vietnam in the first seven months of this year, down 0.8 percent from a year earlier, the government said.

But foreign direct investment pledges during the January-July period plunged 44 percent from the same period in 2011 to $5.2 billion, the Planning and Investment Ministry’s foreign investment agency said in its July report seen on Friday. It gave no reason for the fall.

FDI, overseas remittances and aid money are key sources of foreign exchange for Vietnam, helping offset its trade deficit, which has narrowed sharply to $58 million in the first seven months of this year.

FDI inflow peaked at $11.5 billion in 2008 and has since been stable at around $10 billion to $11 billion a year.

Japan retained its leading position so far in 2012, with disbursement and pledges totalling a combined $4.29 billion, or 53.4 percent of the total foreign investment, the report said.

Most of the investment pledges during the seven-month period were for medium- and small-sized projects, going to processing, manufacturing industries and real estate, with a total of $4.5 billion, it said.

http://www.reuters.com/article/2012/07/27/vietnam-economy-fdi-idUSL4E8IR03920120727

 

Category: Economy