As of September 20, 2023, the total newly registered capital, adjusted and contributed capital to buy shares and buy contributed capital of foreign investors reached approximately 20.21 billion USD, up 7.7% year-on-year. The capital generated by FDI projects was estimated at 15.91 billion USD, an increase of 2.2% over the same period in 2022.
Accumulated to September 20, 2023, the whole country has 38,379 valid projects with a total registered capital of 455.06 billion USD. The accumulated realised capital of foreign investment projects reached nearly 289.9 billion USD, equalling 63.7% of the total valid registered investment capital.
Details are as follows:
I. FDI INFLOWS OF VIETNAM
1. FDI attraction in the first nine months of 2023
1.1. FDI performance:
Realised capital:
As of September 20, 2023, disbursement of FDI projects were estimated at over 15.9 billion USD, up 2.2% year-on-year and up 0.9 percentage point as compared with the figure to the first eight months of this year.
Import and export performance:
Export: Export (including crude oil) was estimated at 191.31 billion USD, down 8.9% year-on-year, accounting for 73.5% of export turnover. Export (excluding crude oil) was nearly 189.9 billion USD, year-on-year decrease of 8.9%, accounting for 72.9% of the country’s export turnover.
Import: Imports of the foreign-invested sector attained approximately 154.12 billion USD, down 14.2% over the previous period and accounting for 64.4% of the country’s import turnover.
Despite the decrease in export turnover in the first nine months of 2023, the FDI sector saw a trade surplus of nearly 37.2 billion USD including crude oil and 35.8 billion USD excluding crude oil, while the domestic sector had a trade surplus of nearly 16.1 billion USD.
1.2. Investment registration
As of September 20, 2023, the total newly registered capital, adjusted capital and capital contributions and share purchases of foreign investors stood at about 20.21 billion USD, up 7.7% year-on-year and down 0.5 percentage points as compared with the figure in the first eight months of this year. The newly registered capital and capital contributions and share purchases increased while adjusted capital continued falling.
Of which:
Newly registered capital: There were 2,254 new foreign-invested projects, valued at over 10.23 billion USD, were granted licenses, up 66.3% in number and 43.6% in value year-on-year.
Adjusted capital: There were 934 turns of project registering to adjust their investment (up 21.5% on-year) with a total additional capital of over 5.14 billion USD (down 37.3% year-on year).
Capital contribution and share purchases: There were 2,539 capital contribution and share purchases by foreign investors (down 5.9% year-on-year) with a value of over 4.82 billion USD (up 47% year-on-year).
(Detailed data in Appendix I attached)
By sector:
Foreign investors poured funds into 18 out of 21 sectors in the national economic classification system, of which the processing and manufacturing industry took the lead with over 14 billion USD, making up 69.3% of the total and increasing 15.5% year-on-year. Real estate came next with a total investment of about 1.94 billion USD, accounting for 9.6% of the total and falling 45% compared to the same period last year. Followed were banking and finance, and wholesale and retail, with 1.54 billion USD (up 63.8 times more compared with the figure last year) and nearly 734 million USD (up 18.7% annually), respectively.
It is also worth noting that processing and manufacturing was the sector with the largest number of newly-registered projects (32.6%) and capital-adjusted projects (56.3%). Wholesale and retail led in the number of capital contribution and share purchases (accounting for 41.4%).
By counterpart:
There were 102 countries and territories investing in Vietnam in the first nine months of 2023. Singapore remained Vietnam’s leading source of foreign investment with over 3.98 billion USD, making up 19.7% of the total FDI registered in the country (down 15.2% year-on-year). China came second with more than 2.92 billion USD, making up 14.5% of the total, and up 94.9% year-on-year. Japan came third with a total registered investment capital of nearly 2.9 billion USD, accounting for 14.3% of the total and rising 51% on-year. Next were Republic of Korea, Hong Kong (China), Taiwan (China) and so on.
Regarding the number of projects, China led in terms of number of newly-registered projects (accounting for 21.2%); the RoK topped the list when it comes to turns of capital adjustment (26.7%) and capital contributions and share purchases (28.5%)
By location:
The foreign investors had invested in 54 provinces and cities nationwide in the first eight months of 2023. Hanoi led the way with a total registered capital of 2.53 billion USD, making up 12.5% of the total and up 2.46 times against last year. Hai Phong ranked second with nearly 2.21 billion USD, making up 10.9% of the total and rising 82.4% compared with the figure in the same period last year. Next were Ho Chi Minh City, Bac Giang, Binh Duong and so on.
Ho Chi Minh City remains leading city in number of new projects (38.2%), turns of adjusted-projects (23%) and capital contributions and share purchases (66.3%).
(Detailed data in Appendix II attached)
2. Evaluation of the FDI performance in the first nine months of 2023
- The realised capital of FDI projects increased 2.2% year-on-year 0.5 percentage points compared with the figures of the first eight month this year. The Government and the Prime Minister has drastically implemented solutions to support and remove obstacles for businesses to disburse their investment capital.
- The total registered capital continued to slighly go compared with the figure of the first eight months (down 0.5 percentage points), but it increased by 7.7% year-on-year.
- The downturn of adjusted capital has been improved month-by-month. The turn of projects had their capital adjusted up also maintained an increase over the same period, confirming the confidence of foreign investors in the investment environment of Vietnam their decisions to expand business.
- Newly-invested projects are still focused on cities and provinces that have more advantages such as infrastructure, stable human resources, efforts to reform administrative procedures, and active investment promotion, like Hanoi, Hai Phong, Ho Chi Minh City, Bac Giang, Binh Duong, Bac Ninh and Dong Nai.
- Asian and traditional investors accounted the most proportion (Singaporean, Japanese, Chinese, Taiwanese (China), Hong Kong (China) and South Korean ones). These six partners accounted for 78.8% of total national investment capital in the first nine months).
- Although export of the FDI sector decreased for over eight (up 2.5 percentage point), it posted a trade surplus and offset the trade deficit of the domestic business sector. With a trade surplus of nearly 37.2 billion USD (including crude oil) and 35.8 billion USD (excluding crude oil), the FDI sector offset the trade deficit of nearly 16.1 billion USD of the domestic business sector, helping the country have a trade surplus of about 21.1 billion USD.
3. Accumulated foreign investment as of Semptember 20, 2023
Accumulated as of September 20, 2023, the whole country has 38,379 valid FDI projects with a total registered captial of 455.06 billion USD. The accumulated realised capital of FDI projects is estimated 289.9 billion USD, equalling 63.7% of the total valid registered investment capital.
- By sector: Foreign investors have invested in 19 out of 21 sectors in the national economic classification system, in which the processing and manufacturing accounted for the highest proportion with nearly 273.9 billion USD, accounting for 60.2% of the total investment capital. It was followed by real estate sector with 67.4 billion USD (representing 14.8%); electricity production and distribution with more than 38.4 billion USD (or 8.4%).
- By counterpart: There are 144 countries having valid investment projects in Vietnam since Liechtenstein had a new investment project in September 2023. In which, the RoK ranked first with a total registered capital of nearly 83 billion USD (accounting for 18.2% of the total). Singapore ranked second with about 73 billion USD (representing for 16%). Next were Japan, Taiwan (China), and Hong Kong (China).
- 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 approximately 57.14 billion USD (accounting for 12.6% of the total investment capital), followed by Binh Duong with more than 40.3 billion USD (or 8.9% of the total investment capital), Hanoi with nearly 39.5 billion USD (representing 8.7% of the total investment capital).
(Detailed data in Appendix III attached)
II. FDI OUTFLOWS OF VIETNAM
In the first nine months of 2023, Vietnam’s total newly-registered and additional investment were about 416.8 million USD (up 4.6% year on year). Of which, 84 projects were granted new investment registration certificates, with a total registered capital of 244.8 million USD (equalling 70.5% year on year); and 18 projects registered to adjust their investment with additional capital of over 171.96 million USD (up 3.38 times more year on year).
Vietnamese investors have invested in 14 sectors abroad. Of which, wholesale and retail took the lead with 26 newly-registered projects and 6 times of adjusting investment capital, with total registered capital of nearly 150.64 million USD, accounting for 36.1% of the total. Next came information and communication with over 114.35 million USD, accounting for 27.4%. Followed by electricity production and distribution, agriculture, forestry and fishery industry, manufacturing and processing industry and so forth.
There were 24 countries and territories receiving investment from Vietnam in the first nine months of 2023. Leading is Canada with one newly-registered and one capital-adjusted projects with the total registered capital of over 150.2 million USD, accounting for 36% of the total. Followed by Singapore, Laos and Cuba.
Accumulated as of September 20, 2022, Vietnam had 1,667 valid aboard investment projects with total registered investment capital of over 22.1 billion USD. In which, there are 141 projects of state-owned enterprises with a total investment of nearly 11.67 billion USD, accounting for 52.8% of the country’s total investment capital.
Vietnam’s investment aboard focuses mainly in: mining (31.5%); agriculture, forestry and fishery (15.5%). The areas receiving the most investment from Vietnam were Laos (24.7%); Cambodia (13.3%); and Venezuela (8.3%)./.
(Detailed data in Appendix IV and V attached)
Translated by Bao Linh
Ministry of Planning and Investment