US$8.3 billion poured into Vietnam's industrial parks and economic zones in 10 months

Industrial parks (IPs) and economic zones (EZs) across Vietnam drew 591 foreign projects worth US$8.3 billion in the first ten months of 2020, according to the Ministry of Planning and Investment (MPI).

Vietnam has a total of 369 industrial parks covering an area of nearly 113.300 hectares. Photo: Doan Thanh

IPs and EZs in Vietnam have attracted a total of 10,055 foreign-invested projects with total registered capital of nearly US$198 billion to date, 70% of which has been disbursed.

Meanwhile, IPs and EZs have received VND125.4 trillion (US$5.4 billion) in terms of newly-registered capital and additional capital poured into 555 projects owned by Vietnamese investors during the ten-month period. This resulted in a total of 9,845 domestic-invested projects with a combined registered capital of VND2,340 trillion (US$101.13 billion), stated the MPI report, adding 46% of the said amount has been disbursed.

As of the end of October, Vietnam has 369 IPs covering an area of nearly 113,300 hectares, of which 280 are operational with 82.800 hectares, other 89 are in the process of site clearance and construction. The occupancy rate reached 71.1% at operating IPs.

Additionally, the country has 17 coastal economic zones covering a combined area of approximately 844,000 hectares on land and water surface.

Under the master planning for the development of Vietnam’s coastal economic zones until 2020, with a vision to 2030, Vietnam would have 19 coastal economic zones with a total area of 871,500 hectares.

Overall, FDI commitments to Vietnam between January and October fell 19.4% year-on-year to US$23.48 billion as the Covid-19 pandemic continues to wreak havoc on the global economy.

Disbursed funds for FDI projects in Vietnam totaled US$15.8 billion in the first ten months of this year, representing a decline of 2.5% year-on-year. While there have been declines in both the number and value of foreign projects in Vietnam, the committed amount to the country remains positive compared to others globally. This shows Vietnam continues to be an attractive destination for foreign investors.

Investors have poured money into 18 fields and sectors, in which manufacturing and processing led the pack with investment capital of over US$10.7 billion, accounting for 45.7% of total registered capital. Electricity production and supply came second with US$4.8 billion, followed by real estate with US$3.5 billion, and wholesale and retail with US$1.4 billion.