Vietnam’s Jan-Nov FDI rises 11.9 pct on-year

1 min readUpdated Dec 1, 2017Dec 1, 20173:00 AM

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Vietnam received an estimated $16 billion in foreign direct investment (FDI) in the first 11 months of this year, up 11.9 percent from the same period in 2016, the government said on Monday.

FDI pledges for new projects, increased capital and stake acquisitions jumped 82.8 percent from a year ago to $33.09 billion, the investment ministry said in a report published on its website.

The manufacturing and processing industry received the most foreign funds as of November, followed by the electricity and air production and distribution sector.

South Korea, Japan and Singapore were the biggest investors in Vietnam.

Vietnam’s FDI inflows hit a record high of $15.8 billion in 2016.

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What this means

The substantial increase in Vietnam's FDI, especially the 82.8 percent surge in pledges, signals a strong vote of confidence in the market's growth trajectory. This sustained inflow, building on 2016's record, creates a more competitive landscape for existing retailers and pressures those eyeing regional expansion. Unlike the store closures seen by Oh!Some in Vietnam, this influx provides fresh capital for new entrants and expands the consumer base. The continued investment from South Korea, Japan, and Singapore suggests these nations see significant long-term potential, contrasting with wider Asian expansion plans like Panpuri's into China and Japan. Future government reports on specific sector allocations will reveal where this capital ultimately lands.

Aiko Tanaka · Retail News Asia newsroom

Questions & Answers

Which sectors in Vietnam attracted the most foreign direct investment as of November?

The manufacturing and processing industry received the largest share of foreign funds. This was closely followed by the electricity and air production and distribution sector, indicating key areas of growth for investors during the period.

Which countries were the primary sources of foreign direct investment into Vietnam?

South Korea, Japan, and Singapore were identified as the largest investors in Vietnam. These nations contributed significantly to the estimated $16 billion in foreign direct investment over the first eleven months.

How do this year's FDI inflows compare to Vietnam's previous record?

The estimated $16 billion in FDI for the first 11 months of this year slightly surpasses Vietnam’s previous record high. In 2016, the total FDI inflows reached $15.8 billion, demonstrating continued growth.

What was the total value of FDI pledges for new projects and expanded capital during this period?

Total FDI pledges, encompassing new projects, increased capital, and stake acquisitions, reached $33.09 billion. This figure represents a substantial 82.8 percent increase compared to the same period in the previous year.

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