FDI disbursements rise slightly in January-June
HCMC – The disbursement of capital from foreign direct investment (FDI) projects in the first half of this
Contrary to concerns about a decline in foreign investment (FDI) in the first months of 2023, Vietnam's FDI attraction recorded an even higher growth rate than last year.
In the context of many unfavorable global economic difficulties, the sharp increase in newly registered capital has shown that Vietnam is a safe and attractive destination in the eyes of foreign investors.
FDI in Vietnam increased sharply over the same period.
Accordingly, the Investment newspaper quoted the Foreign Investment Department as saying that as of December 20, 2023, the total registered FDI capital in Vietnam had reached nearly 36.61 billion USD, an increase of 32.1% compared to the previous year. It was the same period as last year.
In addition, the realized capital of FDI projects is estimated to reach 23.18 billion USD, an increase of 3.5% compared to 2022. This is also determined to be a record disbursement level ever.
Data from the Foreign Investment Agency recorded that, of the total registered capital of more than 36.6 billion USD, newly registered capital reached nearly 20.19 billion USD, an increase of 62.2% over the same period. The number of newly registered projects reached 3,188, an increase of 56.6%. Thus, both new projects and newly registered capital showed a sharp increase.
In addition to newly registered capital, Vietnam also recorded 1,262 projects registering to adjust investment capital (up 14% over the same period) in 2023, with a total additional investment capital of more than 7.88 billion USD (down 22.1% over the same period).
In addition, investment capital through capital contribution and share purchase reached more than 8.5 billion USD, an increase of 65.7% over the same period. Due to the increase in capital contribution scale, although capital contribution and share purchase transactions in 2023 only reached 3,451 transactions, down 3.2% over the same period, capital contribution still increased.
Vietnam is attractive to investors.
According to the assessment of the Foreign Investment Department, disbursed capital increased over the same period, showing the companionship of the Government and the Prime Minister. The close coordination of ministries, branches, and localities in proactively grasping and removing legal difficulties hindering investment and business activities of enterprises has been effective, helping businesses stabilize production and continue to invest.
Besides, the sharp increase in newly registered capital also shows that Vietnam is a safe and attractive destination in the eyes of foreign investors.
Foreign investment capital focuses heavily on provinces and cities with many advantages in attracting FDI (having good infrastructure, stable human resources, efforts to reform administrative procedures and be proactive in investment promotion...), 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 alone account for 78.6% of new projects and 74.4% of the country's capital by 2023.
In addition, although adjusted investment capital still decreased over the same period, the decrease has improved. In particular, despite the decrease in capital, the number of capital-adjusted projects increased over the same period (up 14%). This shows investors' confidence in Vietnam's environment, continuing to expand existing projects.
In 2023, foreign investors invested in 18 21 national economic sectors. The processing and manufacturing industry leads with a total investment capital of more than 23.5 billion USD, accounting for 64.2% of total registered investment capital and an increase of 39.9% over the same period in 2022.
Next is the real estate business, ranked second with a total investment capital of nearly 4.67 billion USD, accounting for more than 12.7% of total registered investment capital, an increase of 4.8% over the same period last year.
Electricity production and distribution industries, finance, and banking ranked 3rd and 4th with total registered capital of more than 2.37 billion USD (up 4.9%) and nearly 1.56 billion USD (nearly 27 times).
Singapore leads in total FDI capital into Vietnam.
Regarding partners, by 2023, 111 countries and territories will invest in Vietnam. Singapore leads with a total investment capital of more than 6.8 billion USD, accounting for 18.6% of the total investment capital in Vietnam, an increase of 5.4% over the same period in 2022.
Ranked second is Japan, with nearly 6.57 billion USD, accounting for more than 17.9% of total investment capital, up 37.3% over the same period.
Hong Kong ranked third with a total registered investment capital of more than 4.68 billion USD, accounting for nearly 12.8% of total investment capital, 2.1 times higher than the same period. Ranked in the next positions are China, Korea, Taiwan...
If calculated specifically regarding the number of projects, China is the leading country in the number of new projects (accounting for 22.2%). Korea leads in capital adjustments (accounting for 25.9%) and capital contributions and share purchases (accounting for 27.8%).
In 2023, Ho Chi Minh City will be the locality ranked No. 1 in attracting foreign investment, with a total registered investment capital of more than 5.85 billion USD, accounting for nearly 16% of total registered investment capital, an increase of 48.5% compared to the same period. However, Ho Chi Minh City's investment capital is mainly in capital contribution and share purchase. This form accounts for nearly 73.3% of Ho Chi Minh City's total investment capital in 2023.
Hai Phong ranked second with a total registered investment capital of more than 3.26 billion USD, accounting for 8.9% of the country's total investment capital, an increase of 66.2% over the same period. The provinces of Quang Ninh, Bac Giang, and Thai Binh ranked next.
