Foreign Investment in Vietnam Flourishes by 9.27 Billion USD in First Four Months of 2023
As of April 20th, the total registered capital for new projects, adjustments, and contributions to buy shares and stakes by foreign investors reached over 9.27 billion USD, a 4.5% increase compared to the same period in 2023. Implemented capital is estimated to be 6.28 billion USD, representing a 7.4% increment.
New investments maintain a high growth rate compared to the same period in terms of both the number of projects and investment capital. The number of projects registered for capital adjustment, and the total registered capital increased; however, capital contribution and share purchases declined (specifically, the total value of capital contribution fell by more than 70% year-on-year, dropping to approximately 930 million USD).
The manufacturing industry leads the way with a total investment capital of over 6.15 billion USD, accounting for more than 66% of the total registered investment capital and marking an increase of almost 19% year-on-year. Real estate ranks second with a total investment capital of over 1.7 billion USD.
According to the agency, Vietnam’s traditional partners from Asia are the most active investors. The five leading countries and regions are Singapore, Hong Kong – China, China, Japan, and South Korea, accounting for over 73% of new investment projects and 73.4% of the country’s total registered investment capital.
FDI structure in the first four months by locality.
Investors have invested in 44 provinces and cities across the country. Ba Ria-Vung Tau leads with a total registered investment capital of over 1.5 billion USD, accounting for more than 16% of the country’s total and marking a 12-fold increase year-on-year. The surge in Ba Ria-Vung Tau’s investment is attributed to a large project with a total capital of 730 million USD.
Hanoi holds the second position with 1.15 billion USD. Bac Ninh is third with a total registered investment capital of nearly 1 billion USD. Quang Ninh, Thai Nguyen, Ho Chi Minh City, Dong Nai, and others follow.
The Foreign Investment Agency acknowledges that FDI concentrates in provinces and cities with advantages in attracting foreign investment, such as well-developed infrastructure, a stable workforce, proactive efforts in administrative procedure reform, and vigorous investment promotion activities. These include Hanoi, Bac Ninh, Quang Ninh, Thai Nguyen, Ho Chi Minh City, Dong Nai, Ba Ria-Vung Tau, Hung Yen, Bac Giang, and Hai Phong. These ten localities accounted for nearly 75% of new projects and over 79% of the country’s total capital investment in the four-month period.
Numerous large-scale projects in energy, electronic components, and high value-added products were newly invested and expanded during the four months.
Export from the FDI sector during the first four months of the year continues to grow year-on-year, with a trade surplus of nearly 16 billion USD including crude oil (around 15 billion USD excluding crude oil), offsetting a trade deficit of approximately 8.6 billion USD in the domestic enterprise sector. According to the Foreign Investment Agency, this acted as a pillar for the country’s overall trade surplus of nearly 7.3 billion USD in the first four months.
