Tiếng Việt
Foreign investment in Vietnam in the first 4 months of 2020 decreased sharply due to the impact of Covid 19. This is also the common situation of many other countries. Based on the data of the first 4 months, we can forecast the situation of foreign investment in Vietnam in the last 6 months of 2020.
>> Read more: 4 reasons foreign investors should invest in Vietnam
Mục lục
1. Foreign investment in Vietnam in the first 4 months of 2020
According to the General Statistics Office, the total foreign investment in Vietnam as of April 20, 2020 reached 12.3 billion USD. This figure includes newly registered capital, adjusted registered capital and value of capital contribution and share purchase of foreign investors. Compared to the first 4 months of 2019, foreign investment capital decreased by 15.5%. There are 984 licensed projects with a registered capital of 6.8 billion USD, down 9.1% of projects and up 26.9% in capital over the same period in 2019. Foreign investment reached 3210 times with a value of contributed capital of nearly 2.5 billion USD.
Foreign direct investment mainly focused on processing and manufacturing industries (74%); followed by real estate business (0.6%); the remaining 8.8% consists of electricity and gas production and distribution. This is the result of a recent shift in global supply chains. The shift was dramatic between 2018 and 2019 when the U.S – China trade war led many foreign company to move factories from China to Southeast Asian countries including Vietnam. The global epidemic has become a catalyst to accelerate this process. Therefore, in the last 6 months of 2020, there will be a wave of foreign investment in Vietnam.
In 57 countries and territories, new investment is permitted in Vietnam. Singapore is the largest investor with 62.9% of newly registered capital. Taiwan ranked second with 9.5%. China ranked third with 7.5%. The remaining group includes Hongkong, Korea, and Japan. It is forecast that in the last 6 months of 2020, this rate will have a strong disturbance. The reason is that foreign investors are exploring the market and tend to wait for the control of the COVID 19 epidemic to invest.
2. The wave of foreign investment in the last 6 months of 2020
Due to good control of COVID 19 epidemic, Vietnam is considered by many investors as a potential destination. According to a survey of 122 Japanese company at the beginning of February. Up to 62.7% of company will move production lines from China and 42.3% of these will choose a new investment location as Vietnam. The global supply chain was broken by the influence of COVID 19 in China, causing a strong movement out of the country and Vietnam was chosen as a safe and attractive destination for investors.
Many foreign investors choose to conduct M&A deals, acquiring Vietnamese businesses that have market share in Vietnam. Recently, a representative of Stark Group from Thailand announced that it had successfully purchased 100% of the shares of Thinh Phat Electric Cable Joint Stock Company (Thipha Cables) and Vietnam Copper Metal and Plastic Joint Stock Company (Dovina). This M&A deal is estimated to total USD 240 million. M&A has been used by many foreign investors to shorten investment procedures in Vietnam.
Why should you use our service?
Is a company specializing in the field of intellectual property, business and investment. We are proud of being one of the leading legal service providers in Vietnam.
With a team of experienced professionals, we believe that we will satisfy you by the quality of our services.
Through rigorous and rigorous selection, each of our legal advisors are supporters of hundreds of businesses, large and small, across the country, meeting their professional knowledge as well as their expertise. practical experience.
Hopefully, our consultants will solve your problems regarding Foreign investment into Vietnam in the first 4 months of 2020. If you have any further questions regarding the incident, you can contact the expert lawyers of LNP Legal Consulting Co., Ltd.
________________________________
With 10 years of experience in the profession, we have a team of lawyers and consultants confident to provide our legal services to clients nationwide.
Contact lawyers and support all Services related to Intellectual Property, Business, Investment:
LNP LAW
Address: 4th Floor, No. 225A Nguyen Ngoc Vu, Trung Hoa, Cau Giay, Hanoi
Phone: 024-63-2929-36
HOTLINE: 0968896603
Email: lawyer@lnplegal.com