Vietnam’s Q1 FDI inflows drop 6.6%

HANOI: Vietnam received $3.85 billion in foreign direct investments (FDI) in the first quarter, down 6.6% from a year earlier, the Ministry of Planning and Investment said yesterday.

FDI has been a key driver of Vietnam’s economic growth. Companies with FDI account for around 70% of exports.

FDI pledges — which indicate the size of future FDI disbursements — fell 20.9% in the Jan-March period from a year earlier to $8.55 billion, the ministry said in a statement.

Of the pledges, 47.5% are to be invested in gas, water and electricity distribution, while 31.9% would go to manufacturing and processing, it added.

Singapore was the top source of FDI pledges in the period, followed by Japan and China.