FDI 2024 Vietnam

VIETNAM’S FDI ATTRACTION IN THE FIRST QUARTER OF 2024

In the first quarter of 2024, the FDI investment situation in Vietnam is growing well.

According to data from the Foreign Investment Department, Ministry of Planning and Investment, as of March 20, 2024. The total newly registered capital, adjustments and capital contributions, share purchases, and capital contributions of foreign investors reached more than 6.17 billion USD, an increase of 13.4% over the same period in 2023.

FDI Capital in Q1/2024

644 new projects were granted Business Registration Certificates (up 23.4% over the same period), and total registered capital reached more than 4.77 billion USD (up 57.9% over the same period).

There were 248 projects registered to adjust investment capital (up 6% over the same period), and the total additional registered capital reached 934.6 million USD (down 22.6% over the same period).

Foreign investors made 604 capital contributions and share purchases (down 14.1% over the same period), and the total value of capital contributions reached nearly 466.2 million USD (down 61.7% over the same period).

FDI investment capital by the national economic sector in Q1/2024

In the first quarter of 2024, foreign investors invested in 17/21 national economic sectors:

  • The processing and manufacturing industry leads with a total investment capital of nearly 3.93 billion USD (63.59% of total registered capital), a slight decrease of 1.3% over the same period. Also, it leads in the number of new projects (accounting for 37.7%) and capital adjustments (61.7%).
  • The real estate business ranked second with a total investment capital of more than 1.58 billion USD (25.64% of total registered capital), nearly 2.1 times higher than the same period.
  • The wholesale and retail industry has a total registered capital of more than 224.8 million USD (accounting for 3.64%). It is the leading industry with the highest % of capital contributions and shares purchase transactions, with 42.5%. Professional, scientific and technological activities with nearly 190.2 million USD, accounting for 3.08%.

FDI investment capital by counterpart in Q1/2024

Regarding investment partners, 62 countries and territories invested in Vietnam in the first three months of 2024. Of which:

  • Singapore leads with a total investment capital of more than 2.55 billion USD, accounting for 41.3% of total investment capital, an increase of 51.3% over the same period in 2023.
  • Hong Kong (China) ranked #2 with more than 1.05 billion USD, accounting for 17.1% of total investment capital, nearly 2.3 times higher than the same period.

Investment from Singapore and Hong Kong (China) is mainly new, accounting for 89.5% and 79.1% of the total investment capital of Singapore and Hong Kong (China) in three months, respectively.

In terms of the number of projects, China is the leading partner in the number of new investment projects (27.8%); Korea leads in the number of capital adjustments (23%) and capital contributions and share purchases (27.8%).

FDI Structure of Q1/2024 by counterpart

FDI investment capital by location in Q1/2024

In terms of investment location, foreign investors have invested in 42 provinces and cities across the country:

Investment capital continues to focus heavily on provinces and cities that have many advantages in attracting FDI (good infrastructure, stable human resources, efforts to reform administrative procedures and dynamism in investment promotion), such as Hanoi, Bac Ninh, Quang Ninh, Thai Nguyen, Ho Chi Minh City, Dong Nai, Ba Ria – Vung Tau.

The ten localities attracting the most FDI are all large industrial centres, including Hanoi, Quang Ninh, Thai Nguyen, Ba Ria—Vung Tau, Bac Ninh, Dong Nai, Bac Giang, Ho Chi Minh City, Hai Phong, and Hung Yen. Yen. These ten localities alone account for 74.7% of new projects and 77.6% of the country’s registered investment capital in the first three months of 2024.

  • Hanoi leads with a total registered investment capital of more than 970.8 million USD, accounting for 15.7% of total registered investment capital and more than 6.1 times higher than the same period in 2023.
  • Bac Ninh ranked second with a total registered investment capital of nearly 745.2 million USD, accounting for almost 12.1% of the country’s total investment capital.
  • If considering the number of projects, Ho Chi Minh City leads the country in terms of the number of new projects (accounting for 38.4%), capital adjustments (accounting for 17.3%), capital contributions, and share purchases (accounting for 72.7%).
FDI Structure of Q1/2024 by location

Statistics on FDI disbursement show that as of March 20, 2024, FDI projects had disbursed about 4.63 billion USD, an increase of 7.1% over the same period in 2023.

CUMULATIVE FDI AS OF THE END OF Q1/2024

At the end of Q1 2024, there were 39,758 valid projects with a total registered capital of more than 475.8 billion USD.

Implemented capital is estimated at 301.8 billion USD, 63.4% of the valid registered investment capital.

Foreign investors have invested in 19/21 national economic sectors, including:

  • The processing and manufacturing industry accounts for the highest proportion, with nearly 287.5 billion USD (accounting for 60.4% of total investment capital).
  • Real estate business with nearly 70.1 billion USD (accounting for 14.7% of total investment capital);
  • Electricity production and distribution with nearly 40.7 billion USD (accounting for almost 8.5% of total investment capital).

There are 145 countries and territories with valid investment projects, including:

  • Korea is ranked first with a total registered capital of nearly 86.9 billion USD (accounting for 18.3% of total investment capital).
  • Singapore ranked second with more than 77.2 billion USD (accounting for 16.2% of total investment capital).
  • Next are Japan, Taiwan (China), and Hong Kong (China).

FDI capital flows have been present in 63 provinces and cities, including:

  • Ho Chi Minh City is the leading locality in attracting FDI with more than 57.7 billion USD (accounting for 12.1% of total investment capital);
  • Hanoi ranked #2 with more than 42.1 billion USD (accounting for 8.9% of total investment capital);
  • Binh Duong, with nearly 40.6 billion USD (accounting for 8.5% of total investment capital), ranked #3

SOME NOTABLE POINTS OF FDI IN VIETNAM IN THE FIRST QUARTER OF 2024

Source: tapchicongthuong.vn

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