Vietnam Jan-Oct FDI inflows drop 2.5% y/y to $15.8 bln: govt

HANOI, Oct 26 - Vietnam received $15.8 billion in foreign direct investment (FDI) in the first ten months of the year, down 2.5% from a year earlier, the Ministry of Planning and Investment said on Monday.

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 19.4% from a year earlier to $23.48 billion, the ministry said in a statement.

Of the pledges, 45.7% were due to be invested in manufacturing and processing, while 20.5% targeted gas, water and electricity distribution, it said.

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