Vietnam FDI and Economic Roundup for January 2015
HANOI – Vietnam’s Foreign Investment Department has stated that total foreign direct investment (FDI) in the first month of 2015 reached US$663.44 million, increasing 67.1 percent compared to the same period last year.
January saw a total of 44 newly registered FDI projects, worth US$392.18 million, up 85.5 percent compared to the same period in 2014. The month also saw 19 new projects break ground – these projects were worth a total US$271.26 million, up 45.8 percent compared to the same period last year.
RELATED: Dezan Shira & Associates’ Pre-Investment, Market Entry Strategy Advisory Services
The three top investment sectors for January were:
- Manufacturing – with a total of US$605.69 million
- Trading – with a total of US$30.79 million
- Energy and water distribution – with a total of US$10.44 million
Investment into Vietnam came from fifteen different nations, the top three of which were:
- British Virgin Islands – with a total of US$331.32 in FDI (49.9 percent)
- South Korea with a total of US$110.25 million (16.6 percent)
- Hong Kong with a total of US$105.5 million (15.9 percent)
RELATED: An Introduction to Vietnam’s Import & Export Industries
While, international enterprises invested into 13 different regions in Vietnam during January, there were clear FDI favorites:
- Ho Chi Minh City (HCMC) – with a total US$347.2 million (52.3 percent), comprising 20 newly-registered projects and four projects which increased their capital
- Binh Duong – with a total US$100 million (15 percent)
- Hai Phong – with a total of US$96.72 million (14.5 percent)
Key FDI projects for January included:
- Worldon Ltd Co – investing US$300 million into HCMC
- Regina Miracle International – which increased its investment by US$90 million in Hai Phong
- Taekwang MTC – which increased its investment by US$43.2 million in Dong Nai
January 2015 Economic Roundup
In addition to the good news of increases in FDI, input prices at Vietnamese manufacturing firms have decreased at a substantial pace thanks to reduced fuel costs resulting from the falling oil price in global markets. Output prices were also lower as a result of the reductions in input costs – charges decreased for the fourth month running and to the greatest extent in two and a half years.
Vietnam’s January export turnover reached US$8.49 billion, up 8.2 percent compared to the same period in 2014. FDI import turnover also gained US$7.8 million, an increase of 57.8 percent. However, according to HSBC’s Purchasing Managers’ Index, both output and new export orders, while still increasing, are growing at a slower pace compared to December of last year.
In additional good news, employment has risen sharply and is at one of the fastest growing rates in the past 17 months, helping to boost purchasing activity within the country.
For a personalized report on Vietnam, please contact editor@asiabriefing.com.
Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email vietnam@dezshira.com or visit www.dezshira.com. Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight. |
Import and Export: A Guide to Trade in Vietnam
In this issue of Vietnam Briefing Magazine, we provide you with a clear understanding of the current business trends related to trade in Vietnam, as well as explaining how to set up your trading business in the country. We also attempt to give perspective on what will be Vietnam’s place in the Association of Southeast Asian Nations (ASEAN) in 2015, and look at some of the country’s key import and export regulations.
Tax, Accounting, and Audit in Vietnam 2014-2015
The first edition of Tax, Accounting, and Audit in Vietnam, published in 2014, offers a comprehensive overview of the major taxes foreign investors are likely to encounter when establishing or operating a business in Vietnam, as well as other tax-relevant obligations. This concise, detailed, yet pragmatic guide is ideal for CFOs, compliance officers and heads of accounting who need to be able to navigate the complex tax and accounting landscape in Vietnam in order to effectively manage and strategically plan their Vietnam operations.
An Introduction to Doing Business in Vietnam 2014 (Second Edition)
An Introduction to Doing Business in Vietnam 2014 (Second Edition) provides readers with an overview of the fundamentals of investing and conducting business in Vietnam. Compiled by Dezan Shira & Associates, a specialist foreign direct investment practice, this guide explains the basics of company establishment, annual compliance, taxation, human resources, payroll, and social insurance in the country.
- Previous Article Hong Kong Investment into Vietnam at Peak
- Next Article Vietnam’s Trade Position in Asia in 2015