Foreign investment plunges in Jan-Feb

The report stated that the disbursement of foreign capital had dropped by 5% to US$2.45 billion in the period.

As many as 500 new projects were given the go-ahead, with total capital pledges of US$5 billion, doubling the amount recorded in the same period last year.

Singapore’s Delta Offshore Energy was the largest investor with its liquefied natural gas-fired power plant valued at US$4 billion in the Mekong Delta province of Bac Lieu.

The 3,200MW plant will have four turbines producing 750MW each, going on-stream at the end of 2023, and one with a capacity of 200MW, going on-stream in 2027.

Capital was raised for 151 projects, but their total additional capital still fell by nearly 25% to US$638.1 million.

Also, foreign investment inflows through mergers and acquisitions plunged by 84% to US$827.3 million.

The department pointed out that aside from the long Lunar New Year holiday, the coronavirus outbreak was also a factor that could have restricted travels among investors and could have affected their decisions to make new investments or expand their existing projects.

Among the 18 sectors that attracted foreign funds in the two months, power production took the lead with US$3.89 billion, followed by the processing and manufacturing industries (US41.76 billion), wholesale and retail sales (US$195 million) and technology and science (US$180 million).

Up to 73 countries and territories have set up shop in the Southeast Asian nation in the first two months of this year. The largest investors were Singapore (US$4.12 billion), China (US$720.4 million) and South Korea (US$425.4 million).