05 Feb Foreign investments in 2016 in Vietnam.

Foreign investment in Vietnam in 2016 was marked by significant growth and major shifts in terms of investment patterns and geographic origin of investors.

According to data from the Foreign Investment Agency of Vietnam, total foreign direct investment (FDI) in 2016 reached $15.8 billion, an increase of 17.6% compared to the previous year. This increase was largely due to the growing number of new investment projects as well as the expansion of existing ones.

In terms of sectoral distribution, the manufacturing and processing industry continued to be the largest recipient of foreign investment, receiving $8.7 billion or 55% of total FDI in 2016. The real estate sector was also a significant recipient, with $2.4 billion in investment, a rise of 64.5% from the previous year.

In terms of geographic origin of investors, the top five investors in Vietnam in 2016 were South Korea, Japan, Singapore, Taiwan and Hong Kong. South Korean investors alone accounted for approximately 25% of total FDI, with $3.9 billion invested in 2016.

Several major investment projects were approved and carried out in 2016, including Samsung Electronics’ $1 billion investment in its mobile phone factory in Bac Ninh Province, and the $1.5 billion Nghi Son Refinery and Petrochemical Complex in Thanh Hoa Province, invested in by a consortium of companies from Japan, South Korea, and the Middle East.

The success of these investment projects and the continued growth of FDI in Vietnam demonstrate the country’s potential as a promising destination for foreign investment. The Vietnamese government has made efforts to create a favorable investment environment, including the passage of several new investment laws and regulations, improvements in infrastructure, and the opening up of new economic zones.

However, challenges still remain for foreign investors in Vietnam, including difficulties in accessing financing, the lack of a transparent and efficient legal system, and complex administrative procedures. As a result, it is recommended for foreign businesses looking to invest in Vietnam to partner with a competent and skilled market entry expert to help navigate these challenges and ensure a successful investment.

In conclusion, 2016 was a year of significant growth for foreign investment in Vietnam, with strong investment from major investors in key sectors such as manufacturing and real estate. Despite challenges, the country’s potential for investment remains high and foreign businesses are encouraged to explore the opportunities available in Vietnam.

Contact PCA Company Services today. We will help you info@pcacompanyservices.com