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News Release

Vietnam

JLL Market Watch Week June 05, 2017

By JLL


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1. The Republic of Korea is Vietnam’s largest FDI investor in first five months​
According to the Foreign Investment Agency under the Ministry of Planning and Investment, total foreign direct investment poured into Vietnam reached USD 12.13 billion, up 10.4% y-o-y. Particularly, the Republic of Korea was the largest among 91 countries and territories investing in Vietnam in the first five months of 2017, with total FDI of USD 4.41 billion, 36.4% of total FDI in the period. Major projects licensed included SamSung Display Vietnam projec​​​t with USD 2.5 billion, B-O Mon gas pipe project with USD 1.27 billion, and Polytex Far Eastern Vietnam project with USD 458.8 million​​.

2. Around 11,000 new companies set up in May nationwide
There were around 11,000 newly established enterprises in the country with total capital of USD 5.2 billion, representing an increase of 9.3% in the number of enterprises and an increase of 17.8% in the registered capital compared to same period last year. Averagely, the registered capital of a company is VND 10.9 billion, a y-o-y rise of 7.8%. Besides, the number of firms that have either suspended or shut down operations surged by 0.9% compared to same period last year​. 

3. Hai Phong takes lead in industrial production growth
Hai Phong leads the country in the industrial production index growth in May, up 20.5% compared to the same period last year, according to the latest figures from the General Statistics Office (GSO). Across the whole sector, the industrial production index for May was estimated an increase of 7.2% in comparison with the same period last year. Specifically, the manufacturing index increased by 11.2%; electricity production and distribution by 13.8%; and water supply and waste water increased by 8.2%; while mining continued a decline of 7.8%.

4. Vietnam to develop 1,370km cross-nation expressway at USD 13 billion
Vietnam’s Prime Minister has selected the official proposal for a colossal project to develop an expressway that runs from north to south. The selected proposal aims to develop 1,372km of expressway with four to six lanes. The whole project is estimated around USD 13.84 billion, and divided into two main phases with the first one scheduled for the 2017-25 period, and the second one, from 2025 onwards. The construction will help connect various socioeconomic centers between the capital and the southern metropolis and reduce traffic pressure on the current National Highway No. 1.
5. Binh Duong’s five-month FDI figures surpass annual target
As of the first five months of 2017, the southern Binh Duong Province has attracted around USD 1.5 billion in FDI, exceeding its 2017 target of USD 1.4 billion, and ranked second in the country in terms of FDI attraction, behind HCMC. The province is home to 2,890 foreign-invested firms with a total registered investment capital of USD 27.1 billion. From 2017 to 2020, Binh Duong will focus on attracting FDI in areas of high-quality services and industries that offer high added value and use eco-friendly technologies.

6. VN’s exports improve, driven by FDI sector
According to latest updates of the General Statistics Office, Vietnam ran a trade deficit of more than USD 2.7 billion in the first five months of this year, a rise of 17.4% over the same period last year. The United States remained the largest importer of Vietnamese goods with export revenue of USD 19 billion, up by 9.9%. Vietnam mainly imported machinery and equipment, electronics, computer and parts, steel, plastics and chemicals, while some major export products were mobile phones, garments and textiles, and footwear products​.
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7. Bank for Social Policies’ capital rises 6.7%
The Bank for Social Policies’ total capital at the end of the first quarter rose 6.7%  against December 2016 to VND 173.34 trillion (USD 7.6 billion). Of this, VND 27.75 trillion was from the State budget; VND 20.98 trillion was from planned loans; and VND 54.2 trillion came from deposits of State-owned credit institutions. Moreover, the bank’s management council has issued a resolution on lending for the social housing program in 2017 and submitted it to the Government, suggesting that it grant capital to implement the program.

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