About US$4.7 Bln of ASEAN Poured into Vietnam

Foreign direct investment (FDI) into Vietnam in the first seven months of 2022 increased by 93%, of which Singapore led the Southeast Asian countries investing in Vietnam.

Processing industry, real estate lead in investment capital

According to the Foreign Investment Agency (Ministry of Planning and Investment), as of July 20, the total foreign investment capital registered for new, adjusted and contributed capital to buy shares and purchase contributed capital reached over US$15.4 billion, approximately 93% over the same period in 2021. In which, adjusted capital and contributed capital increased sharply by 59% and nearly 26% respectively.

Notably, the realized capital of foreign investment projects is estimated at nearly US$11.6 billion, up 10.2% over the same period in 2021.

The whole country has over 900 newly licensed projects (down 7.9% from the same period) with a total capital of over US$5.7 billion (down 43.5% over the same period). In addition, there were nearly 580 project investment capital adjustments (up 3.2% over the same period). In addition, the total additional capital reached over US$7.2 billion and the total value of contributed capital reached over US$2.6 billion.

The manufacturing and processing industry leads 18 economic sectors with a total investment capital of over US$10 billion, accounting for 64.3% of total registered investment capital.

Real estate business ranked second with total investment capital of over US$3.21 billion, accounting for nearly 20.7% of total registered investment capital.

Next are the science and technology with a total investment of nearly US$526.2 million, and the information and communication industry with a total investment of US$465 million.

Wholesale and retail, the manufacturing and processing industry and professional science and technology activities are the industries that attract the most new projects, accounting for 30.5%, 26.6% and 15.7% of the total, respectively.

Singapore leads Southeast Asian countries to invest in Vietnam

Of the total investment capital of about US$4.7 billion from Southeast Asian countries pouring into Vietnam, Singapore leads with 121 new projects with a total investment of US$4.3 billion, accounting for 27.7% of the total investment capital in Vietnam. Singapore's investment projects in Vietnam are most concentrated in the processing industry, accounting for about 40% of Singapore's total investment in Vietnam. The second is real estate business, accounting for about 27%; followed by electricity generation, accounting for about 18% of Singapore's total investment in Vietnam.

Thailand ranked second with 18 newly licensed projects and total investment capital of US$212.11 million. Thailand's FDI projects in Vietnam are mostly small-scale under US$10 million, accounting for more than 77% of total investment projects. The field that attracts many Thai FDI projects is the processing and manufacturing industry.

In third place is Malaysia with 16 new projects and US$144.98 million invested in Vietnam.

Up to now, Thai enterprises have invested in 48 out of 63 and cities of Vietnam, but mainly concentrated in big cities and provinces with relatively favorable infrastructure conditions.

Next, Malaysian investment projects are most concentrated in the field of education and training, accounting for 27% of the total registered investment capital; second is the processing and manufacturing industry, accounting for 22% of the total registered investment capital; followed by the field of electricity production, accounting for 21% of the total registered investment capital in Vietnam.

In addition, other countries in the region such as Brunei, Cambodia, the Philippines and Indonesia also invest in Vietnam, but the projects of these countries are relatively small in scale.

Source: Vietnam Business Forum