Vietnam starts the new year with positive signals in FDI attraction with over US$2.36 billion

Vietnam starts the new year with positive signals in FDI attraction over 2.36 billion USD from foreign investment capital.

Accumulated to January 20, 2024, the whole country has 39,377 valid projects with a total registered capital of 471.9 billion USD. The accumulated realised capital of foreign investment projects reached about 298.66 billion USD, equaling 63.3% of the total valid registered investment capital.

As of January 20, 2024, Vietnam had 190 new projects (up 24.2% over the same period) worth more than 2 billion USD (up 66.9% over the same period); 75 turns of project registering to adjust investment (down 15.7% over the same period) with a total additional registered capital reached more than 235.4 million USD (down 23.1% over the same period); 174 capital contribution and share purchase by foreign investors (down 14.7% over the same period) with a total value reached more than 116.5 million USD (down 33.1% over the same period).

Newly registered investment capital in January 2024 increased sharply over the same period due to an increase in the number of new projects (up 24.2%) and projects with significant investment capital (more than 600 million USD).

The disbursement of FDI projects was estimated at approximately 1.48 billion USD, showing a noteworthy increase of 9.6% compared to the same period in 2023.

The number of projects and newly-registered foreign capital increased, 24.2% and 66.9% respectively over the same period last year

(image by baodautu.vn, translated by C+ Consult.)

Regarding Sector:

– Surpassing the manufacturing and processing sector, the real estate sector has made a vibrant start in 2024, taking the lead with over 1.27 billion USD. This constitutes 53.9% of the overall registered investment capital, doubling the figure from the same period last year.

– The manufacturing and processing sector follows closely, securing the second position with a total investment capital of nearly 926 million USD, accounting for 39.2% of the total.

– Science and technology came next, with a total investment capital of approximately 65.2 million USD.

– Wholesale and retail trade followed, with a total registered capital of nearly 54.5 million USD.

In terms of project quantity, the wholesale and retail sector led in the number of newly registered projects (38.9%) and capital contribution and share purchases (49.4%), while the manufacturing and processing sector had the highest percentage of capital adjustment projects (73.3%).

Total investment capital in real estate business reached more than 1.27 billion USD, accounting for 53.9% of total registered investment capital (Image: mpi.gov.vn)

Regarding Counterpart:

When considering both total newly registered capital and the number of projects, the top two positions in both categories remain consistent:

– Singapore remained in the lead with a total investment capital of over 1.4 billion USD, making up 59.5% of the total investment capital. This reflects a significant increase of 72.8% compared to the same period in 2023.

– Japan came in second with nearly 297 million USD, representing 12.6% of the total, and surpassing the figure from the corresponding period by over 7 times.

– Next were Samoa, China, Hong Kong, and others.

Regarding the number of projects, China was the top investment partner in terms of newly registered projects (accounting for nearly 19%); South Korea took the lead in the number of capital adjustments (contributing to 26.7%) and capital contributions and share purchases (holding 25.3%).

Regarding location:

– After dropping out of the top two spots for a few months, Hanoi climbed back to the top in January 2024 with a total registered capital of over 867 million USD, representing 36.7% of the total and 39.7 times higher than in the same period in 2023. The notable increase in investment capital in Hanoi was partially attributable to a new urban area investment project with a total registered investment capital exceeding 662 million USD.

– Ba Ria-Vung Tau ranked second with nearly 282 million USD, accounting for 11.9% of the total capital.

– Following are Bac Giang, Bac Ninh, Dong Nai, and others.

Ho Chi Minh City continues to be the best performer in attracting new projects (42.1%) and capital contribution and share purchases (78.2%); Bac Ninh leads in turn of adjusted projects (16%).

The positive performance in the first month of the year 2024 is encouraging and points to a promising year for attracting foreign investment to Vietnam.

A turning point in 35 years of Vietnam’s FDI attraction

2023 witnessed a positive growth trend for GDP and investment