Vietnam Attracts Nearly US$17 Bln in Eight Months

The total foreign direct investment (FDI) of Vietnam reached nearly US$16.8 billion as of August 20, equal to 87.7% in the same period of 2021, according to a report by the Ministry of Planning and Investment.

Processing and manufacturing still prevail

According to the Ministry of Planning and Investment, in the past eight months, the country licensed 1,135 new projects, as many as in the same period in 2021, with a total registered capital of over US$6.35 billion, down 43.9% year on year. 676 projects registered to revise their investment capital, adding over US$7.5 billion, up 5.8% in projects and 50.7% in value. Foreign investors made 2,425 share purchase deals worth over US$2.9 billion, down 10.8% in deals but up 3.6% in value.

Foreign investors invested in 18 out of 21 industries. The processing and manufacturing industry continued to take the lead with over US$10.7 billion in the reporting period, accounting for 63.9% of the total. The real estate sector ranked second with over US$3.3 billion, accounting for 19.9% of the total, followed by the professional science and technology with US$620 million and the information and communication sector with US$518.9 million.

The ministry said, 94 countries and territories investing in Vietnam in the first eight months of 2022. Singapore was the biggest investor with more than US$4.53 billion, accounting for 27% of the total FDI fund in Vietnam and shrinking 27% over the same period of 2021. Korea was the second biggest investor with over US$3.5 billion, accounting for nearly 21% of the total and rising 43.7% year on year. Next came Japan nearly US$1.49 billion, accounting for 10.8%.

In addition, Korean investors reportedly made the biggest investment in new projects, existing projects and corporate stock purchases in the eight-month period, accounting for 21.9% of new projects, 36.8% of revised projects and 34.9% of equity purchases.

Focused investment in big cities

Foreign investors invested in 53 provinces and cities across the country in the first eight months of 2022, said the Ministry of Planning and Investment. Ho Chi Minh City was the biggest recipient with over US$2.7 billion, accounting for 16.1% of the total and rising by 24.4% from a year earlier. Binh Duong ranked second with US$2.64 billion, accounting for 15.7% of the total and rising by 57.9% year on year. Bac Ninh came third with nearly US$1.75 billion, accounting for 10.4% of the total and increasing nearly 2.4 times from a year ago.

Seven next biggest recipients of FDI fund included Thai Nguyen, Hai Phong, Bac Giang, Hanoi, Dong Nai, Long An and Nghe An.

The Ministry of Planning and Investment said that foreign investors still focused their fresh investment in big cities such as Ho Chi Minh City and Hanoi. Ho Chi Minh City attracted the largest number of new projects (42.2%) and equity purchase deals (67.3%) and the second largest of revised projects (14.2%, just after Hanoi with 17.9%).

Although the FDI inflow for new projects has not returned to the pre-pandemic level due to strict pandemic prevention measures in 2021, the added fund for existing projects and equity purchase deals advanced 50.7% and 3.6%, respectively. The value of realized FDI fund was estimated at US$12.8 billion, up 10.5% year on year.

The country had 35,539 valid projects with a total registered capital of over US$430 billion as of August 20, 2022. Foreign investors disbursed US$264.4 billion, or 61.5% of their registered investment capital.

Source: Vietnam Business Forum