ASEAN investment in Vietnam balloons to $57B in 2,700 projects

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candy_making,_VietnamAs of October 20, 2015, eight members of the Association of Southeast Asian Nations (ASEAN) have plunked US$56.85 billion in 2,705 projects in Vietnam, accounting for 20.9% of the total foreign investment absorbed by the country, according to the country’s Foreign Investment Agency.

Singapore is the biggest investor, and most of the ASEAN funding is in production and processing projects.

Aside from Singapore, other ASEAN peers investing in Vietnam include Malaysia, Thailand, Brunei, Indonesia, Philippines, Laos, and Cambodia, their investment spread across all 18 sectors, according to a report by state-run media outlet VGP News.

Much of the capital has gone into the manufacturing and processing industry, totaling 1,020 projects  worth $22.32 billion to account for 39.2% of aggregate ASEAN investment. The real estate sector comes in second, gaining $16.9 billion in 104 projects.

In terms of destination, Ho Chi Minh City has attracted a large chunk of ASEAN capitalization with $14.45 billion placed in 1,156 projects, accounting for 25.4%. It is followed by Hanoi and Ba Ria-Vung Tau Province with $7.6 billion and $6.38 billion, making up 13.4% and 11.2%, respectively.

Singapore has a total investment of $33.92 billion in 1,469 projects, accounting for more than half with 59.6%. Malaysia and Thailand occupy second and third places, with $13.35 billion and US%7 billion in investments, respectively, to represent shares of 23.49% and 12.3%.

Second fastest rising economy

Meanwhile, over the recent 25 years, the country has posted the second fastest economic growth in the world after China, said World Bank country director Victoria Kwakwa recently.

According to the statistics of the International Monetary Fund, Vietnam’s GDP per capita spiraled from US$98 in 1999 and US$402 in 2000 to US$1,300 in 2000, and is expected to exceed US$2,200 at the end of this year.

The GDP gap with Vietnam’s neighboring countries is narrowing, Kwakwa said, as the nation’s export and import turnovers continued to post remarkable increases.

Moreover, the Trans-Pacific Partnership will create more long-term opportunities for the country and enhance its competitiveness, she added.

November exports flat

As this developed, the export turnover of Vietnam in November was estimated at $14.3 billion, down 0.1% against last month, according to the General Statistics Office.

In the period January-November, however, export turnover was up 8.3% to $148.7 billion compared to the same period last year.

Shipment value of key products in the first 11 months of 2015 was similar to that in the same period last year, and top exports included telephones and spare parts, garments and textiles, and computers and spare parts.

The U.S. was the largest importer of Vietnamese products in the period, with a turnover of $30.6 billion, a 17.6% increase year-on-year. It was followed by the EU with $28.1 billion (up 10.2%), ASEAN with $17 billion (down 4%), China with $15.6 billion (up 14.3%), Japan with $12.8 billion (down 4.5%); and South Korea with $8.4 billion (up 28.8%).

Photo: www.viajar24h.com