Foreign investors pour capital into new projects in Vietnam

Number of new investment projects increased sharply

According to the Ministry of Planning and Investment (MPI), in the first 10 months of 2023, the total newly registered capital, adjusted capital, and contributed capital to buy shares and purchase capital contributions by foreign investors reached 25.762 billion USD, up 14.7% over the same period in 2022, the highest increase since the beginning of 2023.

Total registered investment capital reached the highest increase since the beginning of the year, up 14.7% over the same period and up 7 percentage points compared to 9 months. The number of new investment projects also increased continuously (up 66.1% over the same period). These figures affirm investors' confidence in Vietnam's investment environment and continue to make decisions to expand existing projects.

The drastic solutions of the Government and the Prime Minister have brought about effectiveness in supporting and removing difficulties for enterprises to implement investment capital disbursement, resulting in the fact that in the first 10 months of 2023, the implemented investment capital of foreign direct investment (FDI) projects continued to increase compared to the same period last year.

Mr. Do Nhat Hoang - Director of the Foreign Investment Agency (Ministry of Planning and Investment) - said: In the first 10 months of 2023, 2,608 new projects were granted business registration certificates (up 66.1% over the same period), with total registered capital reaching more than 15.29 billion USD (up 54% over the same period).

Structure of FDI capital in the first 10 months of 2023 by month and by capital investment method. Source: Ministry of Planning and Investment

In terms of the number of new projects, the manufacturing industry is also the leading industry in terms of the number of new projects (accounting for 32.8%) and capital adjustment (accounting for 54.4%).

There were 1,051 projects registered to adjust investment capital (up 19.4% over the same period), the total additional investment capital reached more than 5.33 billion USD (down 39% over the same period);

There were 2,836 capital contribution transactions to purchase shares by foreign investors, with a total capital contribution value of over 5.13 billion USD (up 35.4% over the same period). Wholesale and retail is the leading industry in terms of capital contribution transactions to purchase shares (accounting for 41.6%).

Attractive addresses for foreign investors

Foreign investors invested in 18 out of 21 sectors of the national economy. Of which, the processing and manufacturing industry took the lead with a total investment capital of nearly 18.84 billion USD, accounting for nearly 73.1% of the total registered investment capital and increasing by 45.8% over the same period.

The real estate business ranked second with a total investment capital of nearly 2.14 billion USD, accounting for more than 8.3% of the total registered investment capital. The banking and finance, wholesale and retail sectors ranked third and fourth with a total registered capital of nearly 1.54 billion USD (nearly 61.4 times) and nearly 907 million USD (up 6.3%), respectively. The rest were other sectors.

Foreign investors have invested in 55 provinces and cities across the country in the first 10 months of 2023. New investment projects are still focused on provinces and cities with many advantages in attracting foreign investment (good infrastructure, stable human resources, efforts to reform administrative procedures and dynamism in investment promotion...) such as Quang Ninh, Hai Phong, Hanoi, Ho Chi Minh City, Bac Giang, Binh Duong...

In October 2023, Quang Ninh recorded the granting of 2 new investment projects with large investment capital, namely the Jinko Solar Hai Ha Vietnam Photovoltaic Cell Technology Complex Project with a total investment of 1.5 billion USD and the Lite-on Quang Ninh Factory project with a total investment of 690 million USD, putting Quang Ninh in the lead in attracting foreign investment capital.

Among the "eagles" investing in Vietnam, investors from Asia and traditional investment partners still account for a large proportion (Singapore, China, Japan, South Korea).

Source