Vietnam FDI in 2024: A Good Year with Disbursed Investment Capital Highest Ever

According to the General Statistics Office, as of December 31, 2024, the foreign direct investment (FDI) realized in Vietnam was estimated at USD 25.35 billion, a 9.4% increase compared to 2023, marking the highest disbursement level ever.

FDI ATTRACTION IN 2024:

1. FDI Disbursement:
In 2024, the capital generated by FDI projects was estimated at 25,35 billion USD, up 9,4% over the same period in 2023. Of this amount, the processing and manufacturing industry reached USD 20,62 billion, accounting for 81,4% of the total FDI realized; real estate business activities amounted to USD 1,84 billion, making up 7,2%.

2. Investment registration:
Compared to 2023, newly registered capital, adjusted registered capital, and the value of foreign investors’ contributions and share purchases reached USD 38,23 billion, a decrease of 3% compared to the same period last year, specifically:
– Project with adjusted investment capital increased by USD 13,96 billion, up 50,4% in value, and down 11,2% in number.
– Newly registered capital worth 19,7 billion USD, down 7,6% in value and up 1,8% in number with 1.539 projects.
– Capital contributions and share purchases reached the value of 4,54 billion USD, down 48,1%.

a. By sector:
– The processing and manufacturing industry, along with the real estate business, continued to be the two sectors attracting the most registered capital, accounting for 66,9% (up 1,1%) and 16,5% (up 18,8%) of the total, respectively. Followed were power production and distribution with 1,42 billion USD, and wholesale and retail with 1,41 billion USD.
– Notably, the wholesale and retail industry had the highest percentage of capital contributions, share acquisitions (40,9%), and the largest number of new projects (34,7%) while the manufacturing and processing sector accounted for the largest share of increased capital (63,8%).

b. By counterpart:
– Regarding value: Singapore led with a total investment of nearly USD 10,21 billion, accounting for 26,7% of the total capital, up 31,4%. South Korea ranked #2 with nearly USD 7,06 billion, accounting for 18.5%, up 37,5%. Following that are China and Hong Kong (China), with respective shares of 14,4% and 11%.
– Regarding the number of projects: China was the largest contributor of new projects (28,3%); South Korea was the largest contributor of capital adjustments (22,8%), capital contributions, and share acquisitions (25,2%).

c. By location:
– Bac Ninh continued to be the leader, attracting nearly USD 5.12 billion, accounting for 13.4%, more than 2.8 times higher than 2023.
– Hai Phong with USD 4.94 billion, accounting for 12.9%, and up 42,4% ranked #2 position.
– Ho Chi Minh City ranked #3 with over USD 3,04 billion, accounting for 8% of the total and down 49,4% year-on-year. Ho Chi Minh City also was the best performer in attracting new projects (42%), additional investment (15,4%), and capital contributions and share purchases (69%).

ACCUMULATED FDI UNTIL THE END OF 2024

Vietnam had 42.002 active foreign direct investment projects by the end of 2024, totaling approximately 502,8 billion USD in registered capital. It was anticipated that the overall realized capital of FDI projects was 322,5 billion USD, or 64,1% of the entire amount of registered investment capital.

– By Sector: With more than 308,76 billion USD (61,4% of the total investment capital), the processing and manufacturing industry made up the largest percentage. The real estate industry came next with 73,18 billion USD (14,6%), followed by the production and distribution of electricity with roughly 41,93 billion USD (8,3%).

– By counterpart: South Korea ranked #1 with a total registered capital of over 92 billion USD (17,9%). Singapore came #2 with nearly 83,13 billion USD (16,5%), followed by Japan, Taiwan (China), and Hong Kong (China).

– By location: Ho Chi Minh City remained the leading province in attracting FDI with 59 billion USD (11,7% of the total investment capital), followed by Binh Duong with 42,48 billion USD (accounting for 8,45%), and Hanoi with nearly 42,34 billion USD (representing 8,4%).

FDI PERFORMANCE 2024 REVIEW

• According to data from the Ministry of Planning and Investment, FDI attraction for the whole year of 2024 reached nearly 38,23 billion USD, this figure puts Vietnam in the group of 15 developing countries attracting the largest FDI in the world. The biggest amount of realized FDI capital ever—25,35 billion USD—demonstrates the tremendous faith that foreign investors have in Vietnam’s project management and implementation capabilities. With an estimated 507 billion USD in 2024, the country’s brand value would rank #32 globally, one spot higher than in 2023.

• While the key investing countries are still traditional investors such as Korea, Singapore, Japan, and China, the investment attraction sectors have shifted significantly, with electronics, auto components, semiconductors, and green technology being the leading investment attraction sectors instead of low-cost manufacturing sectors as before.

• Many large-scale FDI projects in the processing and manufacturing sector play a very important role in the country’s export turnover, develop the domestic supply system, solve local employment and contribute greatly to the State budget. A number of large, and high-tech corporations have expanded factories and established R&D centers in Vietnam such as Samsung, Apple, Marvell, NVIDIA, BYD, etc.,
  However, in recent years, several investors have shown interest in Vietnam but shifted their investments to other nations, partly because Vietnam’s supporting industries are still lacking.

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