Business

Vietnam Witnesses Steep Rise In FDI Inflow: 2017

The first 11 months of the calendar year 2017 witnessed a steep 11.9 percent spurt in Foreign Direct Investment (FDI) in Vietnam as compared to the previous year, stated a government release. According to estimates, till November 30, 2017 Vietnam received a sum of USD 16 billion in FDI.

The government web site also disclosed that additionally, pledges of FDI for fresh projects, stake acquisitions and increased capital investment witnessed a quantum jump of 82.8% Y-o-Y as compared to 2016. The figure stood at USD 33.09 billion for the current year stated the Vietnam government site.

Most of the FDI inflows took place in the manufacturing and processing sector of industry tell November end. This was followed close on heels by electricity and air production and distribution sector reported the Vietnamese government site.

Interestingly, the biggest investments came in, all from Asian countries, namely South Korea, Singapore and Japan. This has boosted the track records of Vietnam’s trade equations as even in the previous year, Vietnam had acquired a record-breaking USD 15.8 billion of FDI Inflow.

It may be recalled that there were flutters in Vietnam over the US President Donald Trump’s decision to withdraw US from the Trans Pacific Partnership early this year in January. However, unfazed by the prospects of losing out on duty free exports to the US, Vietnam has been able to hold its own back in the international arena owing to a slew of free trade agreements that facilitated its textile sector to boost exports.

At present China and Japan are operating textile plants in Vietnam owing to the cost efficiency it offers over domestic production and Vietnam is giving a run for the money to Bangladesh which is the second largest garment exporter, only next to China. While Vietnamese textile sector is also trying to expand its influence in the fashion brands domestically over the arrival of foreign brands, the foreign investment in the country is continually on the rise for the past few years due to favorable government policy and reforms effected in the labor sector.