Foreign Direct Investment in Vietnam Continues to Rise
Foreign direct investment into Vietnam for the first eleven months of 2024 is estimated at 21.68 billion USD, a 7.1% increase compared to the same period last year.
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Specifically, there were 3,035 newly-licensed projects with registered capital of 17.39 billion USD, marking a 1.6% rise in the number of projects and a 0.7% increase in registered capital year-on-year. The manufacturing industry attracted the largest foreign direct investment, with registered capital of 11.47 billion USD, accounting for 66% of the total newly-registered capital. Real estate business followed with 3.39 billion USD, or 19.5%, while other sectors made up 14.5% with 2.52 billion USD.
Among the 79 countries and territories with newly-licensed projects in Vietnam during the first eleven months of 2024, Singapore was the leading investor with 5.78 billion USD, accounting for 33.3% of the total newly-registered capital. South Korea came next with 2.32 billion USD or 13.4%, followed by China with 2.21 billion USD or 12.7%, and Hong Kong SAR with 1.96 billion USD or 11.3%.
In terms of registered capital adjustment, there were 1,350 projects from previous years that registered to adjust their investment capital upwards by 9.93 billion USD, a 40.7% increase compared to the same period last year.
Considering both new and adjusted registration of projects licensed in previous years, the foreign direct investment into the manufacturing industry reached 19.46 billion USD, accounting for 71.2% of the total newly-registered capital and showing an upward trend. Real estate business attracted 4.60 billion USD or 16.9%, while other sectors made up 11.9% with 3.26 billion USD.
There were 3,029 instances of capital contribution and share purchases by foreign investors, totaling 4.06 billion USD, a decrease of 39.7% year-on-year. Of these, 1,131 instances involved capital contribution to increase the charter capital of enterprises, valued at 1.85 billion USD, while 1,898 instances were of foreign investors buying shares from domestic investors without increasing charter capital, valued at 2.21 billion USD. For the form of capital contribution and share purchase by foreign investors, investment in real estate business reached 1.03 billion USD or 25.3% of the total value, professional and scientific and technological activities accounted for 19.1% with 774.9 million USD, and the remaining sectors made up 55.6% with 2.26 billion USD.
Foreign direct investment into Vietnam for the first eleven months of 2024 is estimated at 21.68 billion USD, a 7.1% increase year-on-year. The manufacturing industry accounted for the majority with 17.57 billion USD or 81% of the total foreign direct investment, followed by real estate business with 1.66 billion USD or 7.6%, and production and distribution of electricity, gas, hot water, steam, and air conditioning with 887.4 million USD or 4.1%.
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The draft Strategy for the Development of Vietnam’s Logistics Services for the period 2025 – 2035, with a vision towards 2045 (Draft Strategy), sets ambitious targets for the industry’s growth. By 2035, the strategy aims to achieve an industry growth rate of 8-12%; with 80% of logistics businesses having undergone digital transformation, and 70% of the workforce professionally trained. Additionally, it targets an outsourcing rate of 70-80%, a reduction in logistics costs to 12-15% of GDP (from the current 16-18%), and an LPI ranking of over 40.
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