Foreign Direct Investment (FDI) in Vietnam
As of April 20, 2024, total registered investment, adjustments, and contributions to purchase shares or capital contributions (GVMCP) by foreign investors reached US$9.27 billion, a 4.5% increase compared to the same period in 2023. The implemented capital of foreign investment projects is estimated at around US$6.28 billion, an increase of 7.4% compared to the same period in 2023.
In terms of investment location, according to the report by the Foreign Investment Agency, foreign investors have invested in 44 provinces and cities across the country in the first four months of 2024.
During this reporting period, Ba Ria – Vung Tau has surpassed major cities, such as Hanoi, Bac Ninh, and Ho Chi Minh City, to become the leading province for FDI attraction, with a total registered investment capital of more than US$1.52 billion, accounting for 16.4% of the total investment capital in the country and more than 12 times higher than the same period last year.
According to the report’s data, the total FDI capital in Ba Ria – Vung Tau increased sharply due to a surge in registered capital for new projects. In the first three months of 2023, Ba Ria – Vung Tau only granted five new FDI projects with a total newly registered capital of more than US$295 million. In April, the province granted investment certificates to 12 new projects, with a total registered capital of over US$1.2 billion. Among these projects is the Bio-BDO biological product manufacturing plant project in Phu My 2 industrial zone, Phu My town, by Hyosung Group with a total investment capital of US$730 million. Consequently, the total registered capital for new projects in Ba Ria – Vung Tau in the first four months of 2024 reached US$1.52 billion.
Source: Foreign Investment Agency (Ministry of Planning and Investment)
After Ba Ria – Vung Tau, Hanoi is the city with the second-highest FDI investment capital, with nearly US$1.15 billion in the first four months of the year, accounting for 12.4% of the total registered investment capital and a decrease of 32.7% compared to the same period in 2023. Bac Ninh ranks third with a total registered investment capital of nearly US$998.3 million, accounting for nearly 10.8% of the total investment capital in the country. This is followed by Quang Ninh, Thai Nguyen, Ho Chi Minh City, Dong Nai, and others.
In terms of the number of projects, Ho Chi Minh City leads the country in new projects (37%), capital adjustments (18.3%), and GVMCP (72.3%). The Foreign Investment Agency assesses that investment capital is concentrated in provinces and cities with advantages in FDI attraction (good infrastructure, stable labor force, efforts to reform administrative procedures, and active promotion of investment), such as 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 alone account for 74.8% of new projects and 79.1% of the country’s total investment capital in the first four months.
As of April 20, 2024, there are 40,049 effective projects in the country, with a total registered capital of nearly US$478.58 billion. The accumulated implemented capital of foreign investment projects is estimated at around US$303.46 billion, equivalent to 63.4% of the total registered investment capital that remains in effect. Accordingly, foreign investors have a presence in all 63 provinces and cities in the country, with Ho Chi Minh City leading in FDI attraction with more than US$57.7 billion (12.1% of total investment capital); followed by Hanoi with over US$42.2 billion (8.8% of total investment capital); and Binh Duong with nearly US$40.7 billion (8.5% of total investment capital).
