FDI IN VIETNAM 10 MONTHS 2023 HITS RECORD HIGH US$25.76 BILLION

Hà Nội – FDI in Vietnam in the first 10 months of 2023 reached USD 25.76 billion, the highest growth in this year.

As of 20 October 2023, the total foreign direct investment (FDI) in Vietnam was recorded at 25,762 billion USD, an increase of 14,7% over the same period in 2022, the highest increase in 2023 so far. The newly registered capital in 10 months reached over US$15.29 billion from 2,608 projects, up 54 per cent year-on-year and marking a record high. Of the total, over 5.33 billion USD was added to 1,051 existing projects. Though the additional capital fell 39 per cent, the project number still increased 19.4 per cent from a year earlier, showing investors were confident in Việt Nam’s investment climate, so they decided to expand their projects.

The processing and manufacturing industry leads with a total investment capital of nearly 18.84 billion USD, accounting for nearly 73.1% of total registered investment capital and an increase of 45.8% over the same period. This industry is also the leading industry in the number of new projects (accounting for 32.8%) and capital adjustments (accounting for 54.4%). Real estate came next with nearly 2.14 billion USD or 8.3 per cent, down 44.8%. Finance and banking followed with about 1.54 billion USD, up 61.4-fold.

Singapore leads with a total investment capital of nearly 4.65 billion USD, accounting for more than 18% of total investment capital in Vietnam and a decrease of 13% compared to the same period in 2022. Republic of Korea came second with about 3.93 billion USD, making up 15.2% of the total, and up 0.5% year-on-year. Hong Kong (China) came third with a total registered investment capital of nearly 3.54 billion USD, accounting for 13.7% of the total and rising 2.6 times on-year. Investors from Asia still account for a large proportion, accounting for 81.7% of the country’s total investment capital in 10 months.

Regarding the number of projects, China leads in the number of new projects (accounting for 21.7%); Korea leads in the number of capital adjustments (accounting for 25.7%) and capital contributions and share purchases (accounting for 28.2%).

With regard to the investment destination, Quang Ninh took the lead in attracting investment capital with a total registered investment capital of nearly 3.09 billion USD, accounting for nearly 12% of total registered investment capital and increased by 41.3% over the same period in 2022; Hai Phong ranked with a total registered investment capital of more than 2.8 billion USD, accounting for 10.9% of the total investment capital of the country, 2.14 times higher than the same period. Followed Hanoi, Ho Chi Minh City, Bac Giang province.

Ho Chi Minh City remains the best performer in attracting new projects (38%), the number of adjusted projects (25.3%), and capital contribution and share purchases (66.6%).

Priorly during a meeting with foreign investors in Hà Nội this month, Prime Minister Phạm Minh Chính said Việt Nam would continue to build a safe, transparent and highly competitive business and investment environment, enabling businesses and investors, including foreign ones to operate for a long term in the country. He also proposed that the business community continue to build long-term, sustainable and environmentally friendly business strategies, reforming their production and business models towards a green economy, digital economy, circular economy, knowledge economy, and climate change response.

Sources and Infographics: Ministry of Planning and Investment, GSO, vietnamnews and vietnamplus.