FDI Inflow in the First Four Months Maintains Strong Growth

Despite geopolitical headwinds and global economic uncertainties, foreign direct investment (FDI) inflows into Vietnam during the first four months of 2024 attained an impressive USD 6.28 billion, marking a robust 7.4% increase year-on-year. This represents the highest FDI inflow for the first four months of the year in the past five years, demonstrating Vietnam's enduring appeal as an attractive investment destination.

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According to the General Statistics Office, in April 2024 and the first four months of 2024, total foreign direct investment registered in Vietnam reached nearly USD 9.27 billion, a 4.5% increase compared to the same period the previous year.

In which, there were 966 newly-registered projects with a registered capital of USD 7.11 billion, a 28.8% increase in the number of projects and a 73.2% increase in registered capital compared to the same period last year.

The processing and manufacturing industry attracted the largest foreign direct investment with a registered capital of nearly USD 5 billion, accounting for 70.2% of the newly registered capital; real estate business reached USD 1.6 billion, accounting for 22.5%; other sectors reached USD 519.6 million, accounting for 7.3%.

Among 50 countries and territories with newly licensed investment projects in Vietnam in the first four months of 2024, Singapore is the largest investor with USD 2.59 billion, accounting for 36.4% of total newly registered capital; followed by Hong Kong Special Administrative Region (China) with USD 898.6 million, accounting for 12.6%; Japan with USD 814.1 million, accounting for 11.4%; China with USD 740.2 million, accounting for 10.4%; Turkey with USD 730.1 million, accounting for 10.3%; Taiwan with USD 512.3 million, accounting for 7.2%.

There were 345 registered projects from previous years adjusting their investment capital, increasing by USD 1.23 billion, a 25.6% decrease compared to the same period last year.

Including the newly registered capital and the adjusted registered capital of projects that have been licensed from previous years, the foreign direct investment registered in the processing and manufacturing industry reached USD 6.03 billion, accounting for 72.3% of the newly registered capital and an increase; real estate business reached USD 1.68 billion, accounting for 20.1%; other sectors reached USD 635.1 million, accounting for 7.6%.

Foreign investors contributed capital and purchased shares 902 times with a total value of USD 929.6 million, a decrease of 70.1% compared to the same period last year.

In which, there were 327 times of capital contribution and share purchase to increase the charter capital of enterprises with a capital contribution value of USD 629.6 million and 575 times foreign investors purchased domestic shares without increasing the charter capital with a value of USD 300 million.

Regarding the form of capital contribution and share purchase by foreign investors, the transportation and warehousing sector reached USD 277.2 million, accounting for 29.8% of the contributed capital; investment capital in professional activities and science and technology reached USD 228.7 million, accounting for 24.6%; the remaining sectors accounted for USD 423.7 million, accounting for 45.6%.

Foreign direct investment disbursed in Vietnam in the first four months of 2024 is estimated at USD 6.28 billion, a 7.4% increase compared to the same period last year. This is the highest foreign direct investment disbursed in the first four months of the year in the past five years.

In which, the processing and manufacturing industry reached USD 4.93 billion, accounting for 78.5% of the total foreign direct investment disbursed; real estate business reached USD 607.6 million, accounting for 9.7%; production, distribution of electricity, gas, hot water, steam and air conditioning reached USD 259.8 million, accounting for 4.1%.

In the first four months of 2024, Vietnam’s overseas investment had 36 newly-issued investment certificates with a total capital of USD 98.3 million, a decrease of 29.8% compared to the same period last year; there were 3 projects adjusting capital with an adjusted capital increasing by USD 580 thousand, a decrease of 95.7%.

Totally in the first four months of the year, Vietnam’s total overseas investment (new and adjusted capital) reached USD 98.9 million, a decrease of 35.6% compared to the same period last year. In which, the mining sector reached USD 58.6 million, accounting for 59.3% of total investment capital; wholesale and retail, repair of automobiles, motorbikes, and other vehicles with motors reached USD 11.5 million, accounting for 11.7%; other services reached USD 10 million, accounting for 10.1%; construction activities reached USD 5.5 million, accounting for 5.6%; real estate business reached USD 5.4 million, accounting for 5.4%.

In the first four months of 2024, there were 14 countries and territories receiving investment from Vietnam. The Netherlands is the leading country with USD 54.6 million, accounting for 55.2% of total investment capital; Laos with USD 16.3 million, accounting for 16.5%; the United States with USD 6.7 million, accounting for 6.7%; New Zealand with USD 5.9 million, accounting for 5.9%; Germany with USD 5.4 million, accounting for 5.4%.