As of June 20, 2022, the total newly registered capital, adjusted and contributed capital to buy shares and buy contributed capital of foreign investors reached over 14.03 billion USD, equivalent to 91.1% over the same period in 2021. Although newly registered capital has not fully recovered after the interruption of anti-pandemic measures in 2021, adjusted capital, capital contribution and share purchases have continued to increase sharply at 65.6% and 41.4% respectively. The capital generated by FDI projects was estimated at 10.06 billion USD, an increase of 8.9% over the same period last year.

Accumulated to June 20, 2022, the whole country has 35,184 valid projects with a total registered capital of over 427.97 billion USD. The accumulated realised capital of foreign investment projects is estimated at nearly 261.66 billion USD, equaling 61.1% of the total valid registered investment capital.

Details are as follows:

I. FDI INFLOWS OF VIETNAM

1. FDI attraction in the first six months of 2022

1.1. FDI performance:

Realized capital:

As of June 20, 2022, FDI projects were estimated to disburse 10.06 billion USD, an increase of 8.9% compared to the same period in 2021 and 1 percentage point compared to the first five months.

Import and export performance:

Export: Export turnover of the foreign investment sector continued to increase in the first six months of 2022. Export (including crude oil) was estimated at over 136.36 billion USD, an increase of 16% compared to the same period last year, accounting for 73.5% of export turnover. Export (excluding crude oil) was nearly 135.2 billion USD, an increase of 15.8% over the same period, accounting for 72.9% of the country’s export turnover.

Import: Imports of foreign investment sector attained over 120.52 billion USD, up 16.1% compared to the same period and accounting for 64.8% of the country’s import turnover.

In the first six months of 2022, the FDI sector saw a trade surplus of over 15.8 billion USD including crude oil and approximately 14.7 billion USD excluding crude oil, while the domestic sector had a trade surplus about 16.4 billion USD.

1.2. Investment registration

As of June 20, 2022, the total newly registered capital, adjusted capital and capital contributions and share purchases of foreign investors reached over 14.03 billion USD, as much as 91.1% over the same period in 2021. The adjusted capital and capital contributions and share purchases sharply increased while newly registered capital decreased over the same period last year.

Of which:

Newly registered capital: There were 752 new projects were granted investment registration certificates (a year-on-year decrease of 6.5%). The total registered capital reached over 4.94 billion USD (a year-on-year decrease of 48.2%).

Adjusted capital: There were 487 projects registering to adjust their investment capital (a year-on-year increase of 5.9%). The total additional registered capital reached nearly 6.82 billion USD (a year-on-year increase of 65.6%).

Capital contribution and share purchase: There were 1,707 capital contributions and share purchases by foreign investors (a year-on-year decrease of 8%), with the total value of contributed capital reaching over 2.27 billion USD (a year-on-year increase 41.4%).

(Detailed data in Appendix I attached)

By sector:

Foreign investors poured funds into 18/21 sectors in the national economic classification system, of which the processing and manufacturing industry continued to lead with a total investment of nearly 8.84 billion USD, accounting for nearly 63% of the total registered investment capital. The real estate sector ranked second with total investment capital of more than 3.15 billion USD, accounting for 22.5% of total registered investment capital. Next came information and communication industries, scientific and technological activities with total registered capital of nearly 442.6 million USD and 408.5 million USD respectively. The rest were other sectors.

However, in terms of the number of new projects, wholesale and retail; processing, manufacturing; and scientific and technological professional activities were the industries that attracted the most projects, accounting for 30.1%, 25.4% and 16.5% of the total projects, respectively.

By counterpart:

There were 84 countries and territories invested in Vietnam in the first six months of this year. Among which, Singapore led with a total investment capital of more than 4.1 billion USD, accounting for 29.5% of total investment capital in Vietnam. The Republic of Korea ranked second with over 2.66 billion USD, accounting for nearly 19% of total investment capital (a year-on-year increase of 29.6%). With a large-scale Lego project worth over 1.3 billion USD of total investment capital, Denmark ranked third with a total registered investment capital of approximately 1.32 billion USD, accounting for 9.4% of total investment capital. Next were China, Japan, Hong Kong and so on.

Regarding the number of projects, Korean investors pay the most attention, make new investment decisions and expand investment projects/capital contribution and share purchase in the first six months of 2022 (accounting for 21.3% of new projects, 35.9% of adjusted projects and 36.7% of capital contribution and share purchase).

By location:

The foreign investors had invested in 49 provinces and cities nationwide in the first six months of 2022. Binh Duong led the way with a total registered investment capital of more than 2.53 billion USD, accounting for 18% of total registered investment capital and up 98.2% over the same period in 2021. Ho Chi Minh City ranked second with a total investment capital of more than 2.2 billion USD, accounting for 15.8% of the total capital, up 55.2% over the same period. Bac Ninh ranked third with a total registered investment capital of nearly USD 1.63 billion, accounting for 11.7% of total investment capital and increasing by 3.3 times over the same period in 2021. Next were Thai Nguyen, Hai Phong, Hanoi and so on.

In terms of the number of new projects, foreign investors still focused on big cities with convenient infrastructure such as Ho Chi Minh City and Hanoi. In which, Ho Chi Minh City led both in number of new projects (40.4%), capital contributions and share purchases (68.3%) and ranked second in the number of projects registering to adjust investment capital (14%, after Hanoi which was 16.6%).

(Detailed data in Appendix II attached)

2. Evaluation of the FDI performance in the six months of 2022

- The realised investment capital of foreign investment projects in the first six months of 2022 achieved the highest increase since the beginning of the year, up 8.9% compared to the same period in 2021 and over 1 percentage point compared to the first five months. That shows that enterprises are constantly recovering, maintaining and expanding production and business activities.

- Adjusted capital and capital contributions and share purchases of foreign investors both increased over the same period. Adjusted capital decreased in March and May and sharply increased in remaining months, ranging from 90% to nearly 4.7 times compared to the same period in 2021. Although the number of projects registering to adjust investment capital increased slower compared to the first five months, the scale of adjusted capital per project was high compared to the same period last year.

Many projects of manufacturing electronic and high-tech products expanded large-scale capital in the first six months of the year. The increase of adjusted investment capital shows that foreign investors continue to believe in the economy and investment environment of Vietnam, making decisions to expand their projects. However, it reflects the impact of inflation and rising prices due to political and trade conflict in the world.

- Newly registered investment capital continued to decreased but it was improved. Newly registered capital decreased sharply from January to April but it increased in May and June by 12.8% and 14.6%, respectively, over the same period. However, it happens because the newly registered capital of May and June in 2021 was sharply reduced by anti-pandemic measures in 2021.

- Export of the FDI sector increased in the first six months of 2022 but slower than the first five months. The FDI sector had a trade surplus of over 15.8 billion USD (including crude oil) but cannot offsetting the trade deficit of 16.4 billion USD of domestic business sector, while the country gains a trade deficit of approximately 0.6 billion USD in the first six months of 2022.

The Russia-Ukraine conflict does not have a significant direct impact on foreign investment in Vietnam because the investment of Russia and Ukraine only accounts for a small proportion of the total investment capital (for 0.23%), but has an indirect effect through high prices and causes supply chain disruptions.

However, in the medium and long term, the conflict could lead to a trend of shifting investment out of Russia and Ukraine to Asian countries. Vietnam can also benefit from this shift in investment capital. However, this trend is not yet clear.

3. Accumulated foreign investment as of June 20, 2022

Accumulated as of June 20, 2022, the whole country has 35,184 valid projects with a total registered capital of over 427.97 billion USD. The accumulated realised capital of FDI projects is estimated at nearly 261.66 billion USD, equaling 61.1% of the total valid registered investment capital

- By sector: Foreign investors have invested in 19/21 sectors in the national economic classification system, in which the processing and manufacturing industries accounted for the highest proportion with over 253.6 billion USD, accounting for 59.3% of the total investment capital. It was followed by real estate sector with 65.4 billion USD (representing 15.3% of total investment capital); electricity production and distribution with nearly 36.5 billion USD (or 8.5% of total investment capital).

- By counterpart: There are 139 countries having valid investment projects in. In which, RoK ranked first with a total registered capital of almost 79.9 billion USD (accounting for 18.5% of the total investment capital). Singapore ranked second with nearlt 68.9 billion USD (accounting for 16.3% of the total investment capital). Next were Japan, Taiwan, Hong Kong and so on

- By location: FDI has been present in all 63 provinces and cities nationwide, of which Ho Chi Minh City remains the leading province in attracting foreign investment with nearly 55.2 billion USD (accounting for 12.9% of the total investment capital), followed by Binh Duong with approximately 39.6 billion USD (or 9.2% of the total investment capital), Hanoi with over 37.7 billion USD (representing 8.8% of the total investment capital)./.

(Detailed data in Appendix III attached)

Translated by Bao Linh

Ministry of Planning and Investment