Attracting FDI capital: A bright spot in the country's economic picture

According to the Ministry of Planning and Investment, there are currently 147 countries and territories investing in Vietnam with 41,720 projects and a total registered capital of 496.7 billion USD.

Foreign direct investment (FDI) has been present in all 63 provinces and cities nationwide; in which, Ho Chi Minh City leads with more than 58.4 billion USD, followed by Binh Duong with nearly 42.4 billion USD and Hanoi with nearly 42.2 billion USD.

From the bright spot of Binh Duong

According to the Ministry of Planning and Investment, by the end of November 2024, surpassing Hanoi, Binh Duong surprisingly ranked second in the country, only after Ho Chi Minh City in attracting foreign investment capital.

In recent times, Binh Duong has been one of the leading localities in the country in attracting foreign investment capital. From the beginning of the year to November 30, 2024, the province has attracted more than 1.8 billion USD (exceeding the target for 2024) with 184 new investment projects, 149 projects with increased capital and 121 projects registered for capital contribution and share purchase.

In addition, up to now, Binh Duong ranks second in the country, only after Ho Chi Minh City, in attracting FDI capital with 4,378 valid projects with a total registered investment capital of more than 42.39 billion USD.

Binh Duong currently has 29 industrial parks and industrial clusters, with a land lease rate of over 93%. Many large-scale projects such as the toy production project of Lego Company (Denmark) with a newly registered investment capital of 1.3 billion USD, and 2 industrial real estate business projects of BW Limited Company with a registered investment capital of 237 million USD have all been "attracted" to Binh Duong.

Workers work at Bowker Vietnam Garment Company, Dong An 1 Industrial Park, Thuan An City, Binh Duong Province. (Photo: Chi Tuong/VNA)

Explaining this impressive result, Mr. Nguyen Trong Nhan, Director of the Department of Planning and Investment of Binh Duong, said that in order to become a locality that always attracts foreign investors and always leads the country in attracting foreign investment, Binh Duong has made tireless efforts with new and drastic ways in economic management, improving the investment and business environment in the right direction, which has been recognized and highly appreciated by the investor and business community.

Binh Duong continuously innovates and implements investment attraction solutions suitable to the local characteristics. Specifically, the province implements a new FDI attraction strategy which is not to attract investment at all costs but to select by industry, scale, technology and location, ensuring adherence to the provincial planning orientation.

In particular, the province prioritizes attracting investment in new fields such as renewable energy, semiconductor chips, and other industries serving the tasks of socio-economic development, sustainable economic development, and green economy.

Besides, Binh Duong improves the efficiency of the Steering Committee to resolve difficulties and problems for businesses, especially real estate projects.

At the same time, deploy solutions on infrastructure development investment; support access to loans; support programs and policies for small and medium enterprises; support enterprises to stabilize production and business, and seek new markets.

At the same time, the province promotes public investment, puts into use important projects and key breakthrough works to help resonate common economic strength, create jobs, promote consumption, and increase regional connectivity for economic sectors.

With the strategy of developing the information technology industry, Binh Duong is forming a concentrated information technology park and data center, aiming to attract investment in electronic products, semiconductor industry, IoT, artificial intelligence and network security; contributing to the formation of a high-tech dynamic region connecting with Dong Nai and Ba Ria-Vung Tau provinces.

Currently, Binh Duong has 6 industrial parks applying the smart management and operation platform of Becamex IDC Corporation. With automation technologies, artificial intelligence (AI), Internet of Things (IoT) and 5G network, helping businesses collect data in real time, automate processes, optimize resources and reduce environmental impact.

Go to stable investment country

According to the Ministry of Planning and Investment, as of November 30, 2024, the total newly registered capital, adjusted capital, and capital contribution and purchase of shares and capital contributions by foreign investors reached nearly 31.4 billion USD, an increase of 1% over the same period in 2023.

The realized capital of foreign investment projects is estimated at about 21.68 billion USD, an increase of 7.1% over the same period in 2023.

The country has 41,720 valid foreign investment projects with a total registered capital of 496.7 billion USD. The accumulated realized capital of foreign investment projects is estimated at nearly 318.9 billion USD, equivalent to 64.2% of the total registered investment capital in effect.

Currently, there are 147 countries and territories with valid investment projects in Vietnam; in which, the leading country is South Korea with a total registered capital of more than 89.1 billion USD (accounting for 17.9% of total investment capital), Singapore with nearly 82.3 billion USD (16.6%), followed by Japan, Taiwan (China), Hong Kong (China).

Production activities at a FDI enterprise in Dong Nai. (Photo: Hong Dat/VNA)

By industry, 19/21 industries in the national economic classification system have FDI capital; of which the processing and manufacturing industry accounts for the highest proportion with more than 299.8 billion USD, accounting for 61.2% of total investment capital.

Next are real estate businesses with more than 72.5 billion USD, accounting for 14.6% of total investment capital; electricity production and distribution with nearly 41.7 billion USD, accounting for 8.4% of total investment capital.

According to the Foreign Investment Agency, in the first 11 months of 2024, total registered FDI continued to increase slightly (1%) over the same period. New and adjusted investment capital increased in both the number of new projects/turnover of projects with adjusted capital as well as new/increased investment capital.

In November 2024 alone, the total investment capital was quite large compared to other months of the year with nearly 4.12 billion USD2, accounting for 13.1% of the total investment capital of the past 11 months.

FDI capital is concentrated in localities with many advantages, good infrastructure, stable human resources, efforts to reform administrative procedures and dynamism in investment promotion such as Bac Ninh, Quang Ninh, Ho Chi Minh City, Hai Phong, Hanoi, Binh Duong, Ba Ria-Vung Tau, Dong Nai, Nghe An, Bac Giang.

These 10 localities alone accounted for 79.6% of new projects and 69.4% of the country's investment capital in the first 11 months of 2024.

The largest investment partners in recent times have been traditional partners of Vietnam and come from Asia. The top 5 countries and territories, Singapore, South Korea, China, Hong Kong (China), and Japan, account for nearly 73% of new investment projects and more than 77% of the total registered investment capital of the country.

According to investment experts, the increase in FDI capital is the reaction of investors to a growing domestic market, a bright spot of the economy. It is also a positive sign for the following year in finding opportunities to attract investment.

Minister of Planning and Investment Nguyen Chi Dung emphasized that the Government is always determined to perfect institutions, improve the investment environment, handle backlogs and obstacles, and promote investment in strategic and important infrastructure projects.

In particular, Vietnam is very determined to attract investment in high-tech industry. To promote this, Vietnam has been building an attractive business environment with many incentives for high-tech enterprises; including the application of special investment procedures.

Mr. Victor Ngo, General Director of UOB Vietnam Bank, said that Vietnam is becoming one of the most attractive destinations for FDI.

According to the Foreign Investment Agency, by the end of 2024, FDI capital into Vietnam will continue to maintain a stable growth rate.

The Government has issued a Decree on the establishment, management and use of the Investment Support Fund to directly support enterprises in this field in training, human resource development, investment in creating fixed assets, and production of high-tech products.

This will be a new breakthrough in stabilizing existing FDI sources and creating an open corridor for attracting future FDI sources./.

(Vietnam+)

Source: https://www.vietnamplus.vn/thu-hut-nguon-von-fdi-diem-sang-trong-buc-tranh-kinh-te-cua-ca-nuoc-post999429.vnp