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

HANOI, Oct 26 (Reuters) - 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. (Reporting by Phuong Nguyen Editing by Ed Davies)