Vietnam’s FDI hits new high, CPI calms inflation concerns in November

HO CHI MINH CITY – Foreign direct investment (FDI) into Vietnam continued to increase as registered FDI – newly-registered capital, additional funds, and share purchases - reached US$33.09 billion in November, a surge of 82.8% YoY. Disbursed FDI amounted to US$16 billion, up 11.9% YoY, Vietnam Assete Management (VAM) reports.

Of the 112 countries and territories investing in Vietnam, Japan topped the list YTD with total investment capital of US$8.94 billion, followed by South Korea (US$8.18 billion) and Singapore (US$4.69 billion).

In terms of sector performance, positive signals continued to be seen from the industrial sector with a gain in the Production Index of 17.2% YoY in November.

This positive performance was led by the manufacturing sector (+24.3% YoY), with the mining sector still lagging far behind (-4.1% YoY).

Although the PMI witnessed another month of slight decline, the figure falling to 51.4 in November from October’s 51.6, it still recorded its 24th consecutive month of economic expansion (above the 50 threshold).

CPI inflation posted only a slight increase of 0.13% MoM in November, compared to a 0.41% MoM rise in October, leading to a YTD CPI growth of 2.38% and  monthly average CPI growth of 3.61% YoY.

However, VAM believes that with high credit growth this year, inflation remains a risk to be watched. www.vietnamam.com (ATI).