FDI capital continues to pour into Vietnam

In 12 months, foreign direct investment (FDI) into Vietnam reached more than 36.6 billion USD, an increase of 32% over the same period in 2022.

The Foreign Investment Agency said that of the 36.6 billion USD registered capital as of December 20, the number of newly registered capital reached nearly 20.2 billion USD, an increase of 62.2%. The number of new projects also reached 3,188, an increase of 56.6%.

In addition to newly registered capital, this year also recorded 1,262 projects registering to adjust capital - up 14%, with the total additional investment capital reaching more than 7.88 billion USD, down more than 22%. Meanwhile, investment capital through capital contribution and share purchase reached more than 8.5 billion USD, up 65.7%. Thanks to the increased capital contribution scale, although the number of capital contribution and share purchase transactions decreased compared to the same period, the capital contribution increased sharply.

In addition, disbursed capital as of December 20 reached nearly 23.2 billion USD, up 3.5% over last year and a record high.

The increase in disbursed capital, according to the Foreign Investment Agency, has shown that some bottlenecks and barriers to investment and business have been effectively removed, thereby helping businesses stabilize and improve production and reinvest. The sharp increase in newly registered capital also shows that Vietnam continues to be a safe and attractive destination.

Currently, FDI capital continues to focus on provinces and cities with many advantages in infrastructure, human resources, and favorable investment environment such as Ho Chi Minh City, Hai Phong, Quang Ninh, Bac Giang, Thai Binh, Hanoi, Bac Ninh, Nghe An, Binh Duong, Dong Nai. These 10 localities accounted for 78.6% of new projects and 74.4% of the country's capital in 2023.

Regarding industries attracting FDI, data shows that the manufacturing and processing industry accounts for more than 64% of capital, an increase of nearly 40% over the same period last year. The real estate industry group ranked second, followed by electricity production and distribution and finance and banking.

By partner, this year, Singapore leads with 18.6% of total investment capital; Japan ranks second, followed by markets such as Hong Kong, China (mainland), Taiwan, and South Korea.

Earlier this month, in announcing Vietnam’s credit rating upgrade, Fitch Ratings assessed that Vietnam’s cost advantages, abundant labor force and a wide range of FTAs will help it continue to attract FDI inflows amid global supply chain diversification. FDI is seen as a driving force, helping to strengthen Vietnam’s favorable growth prospects in the medium term.

Duc Minh

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