Foreign direct investment (FDI) in the first quarter reached a record high.
The Ministry of Trade, Industry and Energy on April 6 said FDI in the quarter reached USD 5.63 billion, up 3.4% from the same period last year.
The ministry said the record performance was all the more meaningful since it came despite difficulties such as recent austerity measures in leading economies, high interest rates and capital market crunch.
By industry, manufacturing saw FDI of USD 1.54 billion, down 6%, while that in the service sector rose 5% to USD 3.95 billion. In manufacturing, FDI soared 769% in electricity and electronics, 104% in transportation machinery and 53% in chemicals. Within the service sector, it saw jumps of 5,167% in leisure, sports and games and 1,956% in business support and leasing.
By country, investment from Europe jumped 258% to USD 2.08 billion and that from Greater China, a region comprising China, Taiwan, Hong Kong and Macao, rose 18% to USD 1.4 billion. FDI from the U.S. declined 14% to USD 750 million and that from Japan dropped 38% to USD 300 million.
Greenfield investment, or FDI to build, expand and directly run plants or business facilities, reached USD 4.18 billion, up 13%. Mergers and acquisitions for acquiring corporate shares or agreeing to a merger dropped 16% to USD 1.45 billion.
To attract more FDI, the ministry said, “We will improve the domestic investment environment by strengthening the investment support system such as amending the operating guidelines of the cash support system and actively innovating regulations to meet global standards.”
“We will also continue investment attraction and promotional activities through summit diplomacy and inter-country events for economic cooperation.”
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