Here’s billion-dollar sector attracting highest FDI in Vietnam
According to data from General Statistics Office, after 11 months, the total realized foreign direct investment (FDI) in Vietnam increased by 15.1% over the same period last year and reached the highest level in the past 5 years. The processing and manufacturing industry continues to hold leading position in attracting FDI.
Processing and manufacturing industry continues to hold the leading position in attracting FDI (photo: Nhu Y)
In which, the processing and manufacturing industry reached 15.52 billion USD, accounting for 78.8% of the total realized foreign direct investment capital. Real estate business and production and distribution of electricity, gas, hot water, steam and air-conditioning all reached about 1.4 billion, accounting for 7.3%.
Total FDI into Vietnam as of November 20, 2022 reached 25.14 billion USD, down 5% over the same period last year. Explaining the decrease in total FDI invested in Vietnam, the Foreign Investment Department said that compared to October 2022, FDI capital has improved when foreign investors promote project registration procedures.
Newly registered capital had a clear recovery with an increase of 14.9% in the number of projects (1,812 projects) and a decrease of 18% in registered capital (11.52 billion USD), significantly lower than the level of registered capital down 23.7% in 10 months.
According to the Foreign Investment Agency, excluding the two large-scale projects that were granted investment certificates in the last 11 months of last year, Long An LNG Power Project I, II with investment capital of 3.1 billion USD and O Mon II Thermal Power Project with registered capital of 1.3 billion USD, the newly registered investment capital in 11 months of 2022 increased by 19.3% over the same period.
Along with newly registered capital, in 11 months, there were 994 times of projects registered to adjust investment capital (up 13.3% over the same period), with the total additional registered capital reaching nearly 9.54 billion USD (up 23.3% over the same period).
According to the Foreign Investment Agency, the adjustment of capital continues to maintain its growth momentum, which is a signal to confirm the confidence of foreign investors in the economy and investment environment of Vietnam.
Meanwhile, after 11 months, total investment through capital contribution and share purchase decreased by 7% over the same period, reaching nearly 4.08 billion USD. The number of times of capital contribution and share purchase by foreign investors also reached only 3,298 times, down 4.8% over the same period.
Regarding the total newly registered FDI capital, the processing and manufacturing industry continued to hold the “champion” position in attracting FDI with registered capital of 6.52 billion USD, accounting for 56.6% of the total newly registered capital; production and distribution of electricity, gas, hot water, steam and air conditioners reached 2.1 billion USD, accounting for 18.2%; the remaining industries reached 2.9 billion USD, accounting for 25.2%.
In terms of investment partners, Singapore leads with a total investment of nearly 5.78 billion USD, accounting for 23% of total investment capital in Vietnam, down 24% compared to the same period in 2021. Japan ranked second with more than 4.6 billion USD, accounting for 18.3% of total investment capital, up 24.4% over the same period. Korea ranked third, followed by China, Hong Kong (China), Denmark,…