Vietnam Jan-Aug FDI inflows drop 5.1% y/y to $11.35 bln: govt

HANOI — Vietnam received $11.35 billion in foreign direct investment (FDI) in the first eight months of the year, down 5.1% from a year earlier, the Ministry of Planning and Investment said on Wednesday.

FDI has been a key driver of Vietnam’s economic growth.

Companies with investment from foreign firms account for about 70% of the Southeast Asian country’s exports.

FDI pledges — which indicate the size of future FDI disbursements — dropped 13.7% from a year earlier to $19.54 billion, the ministry said in a statement.

Of the pledges, 47.7% are due to be invested in manufacturing and processing, while 20.6% target gas, water and electricity distribution, it said.

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