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FDI attraction situation in Vietnam and Vietnam’s overseas investment in January 2024

Date 26/01/2024 - 17:11:00 | 477 views
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As of January 20, 2024, the total newly registered capital, adjusted and contributed capital to buy shares and buy contributed capital of foreign investors reached over 2.36 billion USD, rising 40.2% year-on-year. The capital generated by FDI projects was estimated at 1.48 billion USD, up 9.6% over the same period in 2023.

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 298.66billion USD, equalling 63.3% of the total valid registered investment capital.

Details are as follows:

I. FDI INFLOWS OF VIETNAM

1. FDI attraction in January 2024

1.1. FDI performance:

Realised capital:

As of January 20, 2024, disbursement of FDI projects were estimated at about 1.48 billion USD, up 9.6% year-on-year.

Import and export performance:

Export: Export turnover of the foreign-invested sector increased in January 2024. Export (including crude oil) was estimated over 24.82 billion USD, up 7.8% year-on-year, accounting for 73% of export turnover. Export (excluding crude oil) was 27.7 billion USD, rising 7.9% from a year earlier, accounting for 72.6% of the country’s export turnover.

Import: Imports of the foreign-invested sector attained 21.3 billion USD, an increase of 37% over the previous period and accounting for 63.6% of the country’s import turnover.

Despite the decrease in export turnover in the first month of 2024, the FDI sector saw a trade surplus of over 3.5 billion USD including crude oil and 3.4 billion USD excluding crude oil, while the domestic sector had a trade surplus of more than 3 billion USD.

1.2. Investment registration

As of January 20, 2024, the total newly registered capital, adjusted capital and capital contributions and share purchases of foreign investors stood at over 2.36 billion USD, up 40.2% year-on-year. The newly registered capital surged while adjusted capital and capital contributions and share purchases continued falling.

Of which:

Newly registered capital: There were 190 projects worth over 2 billion USD, were granted licenses, up 24.2% in number and 66.9% in value year-on-year.

Adjusted capital: There were 75 turns of project registering to adjust their investment (down 15.7% on-year) with a total additional capital of over 235.4 million USD (down 23.1% year-on year).

Capital contribution and share purchases: There were 174 capital contribution and share purchases by foreign investors (down 14.7% year-on-year) with a value of over 116.5 million USD (down 33.1% year-on-year).

(Detailed data in Appendix I attached)

By sector:

Foreign investors poured funds into 15 out of 21 sectors in the national economic classification system, of which the real estate took the lead with over 1.27 billion USD, making up 53.9% of the total and double the figure as compare to the same period last year. The processing and manufacturing industry came next with a total investment of approximately 926 million USD, accounting for 39.2% of the total. Followed were professional activities, science and technology, and wholesale and retail with nearly 65.2 million USD and nearly 54.5 million USD, respectively.

It is also worth noting that wholesale and retail was the sector with the largest number of newly-registered projects (38.9%) and capital contribution and share purchases (49.4%). The processing and manufacturing sector led in the number of capital adjustment (73.3%).

By counterpart:

There were 39 countries and territories investing in Vietnam in the first month 2024. Singapore was Vietnam’s leading source of foreign investment with over 1.4 billion USD, making up 59.5% of the total FDI registered in the country (up 72.8% year-on-year). Japan came second with approximately 297 million USD, making up 12.6% of the total, 7 times more than the figure as compared with the same period last year. Next were Samoa, China, Hong Kong (China) and so on.

Regarding the number of projects, China led in terms of number of newly-registered projects (accounting for nearly 19%); South Korea topped the list when it comes to turns of capital adjustment (26.7%) and capital contributions and share purchases (25.3%).

By location:

The foreign investors had invested in 35 provinces and cities nationwide in January 2024. Ha Noi led the way with a total registered capital of over 867 million USD, making up 36.7% of the total and increasing 39.7 times from a year earlier. Ba Ria – Vung Tau ranked second with nearly 282 million USD, accounting 1.9% of the total. Followed by Bac Giang, Bac Ninh, Dong Nai and so on.

Ho Chi Minh City was the best performer in attracting new projects (42.1%) and capital contributions and share purchases (78.2%). Bac Ninh led in turns of adjusted projects (16%).

(Detailed data in Appendix II attached)

2. Evaluation of the FDI performance in January 2024

- Following the investment trend at the end of 2023, the total registered investment capital in the first month of 2024 continues to surge, up 40.2% year-on-year and 8.1 percentage points compared to the end of 2023.

- New investment increased both in number of projects and capital. With an increase of 24.2% in the number of projects and some major projects worth hundreds of million USD, the total newly registered investment capital in January 2024 increased by 66.9% compared to the same period, focusing 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, Ba Ria – Vung Tau, Bac Giang, Bac Ninh, Dong Nai, Hai Phong and Ho Chi Minh city. These seven localities accounted for 72.1% of the country’s newly-registered projects and 82.5% of investment capital in the first month of 2024.

- Export of the FDI sector increased again after the falling in 2023. With a trade surplus of over 3.5 billion USD (including crude oil) and 3.4 billion USD (excluding crude oil), the FDI sector offset the trade deficit of over 3 billion USD of the domestic business sector, helping the country have a trade surplus of about 500 million USD in January 2024.

3. Accumulated foreign investment as of January 20, 2024

Accumulated as of January 20, 2024, the whole country has 39,377 valid FDI projects with a total registered capital of 471.9 billion USD. The accumulated realised capital of FDI projects is estimated at 298.66 billion USD, equalling 63.3% 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 over 284.4 billion USD, accounting for 60.3% of the total investment capital. It was followed by real estate sector with approximately 69.5 billion USD (representing 14.7%); electricity production and distribution with more than 40. 7 billion USD (or 8.6%).

- By counterpart: There are 144 countries having valid investment projects in Vietnam. In which, South Korea ranked first with a total registered capital of approximately 86 billion USD (accounting for 18.2% of the total). Singapore ranked second with over 76.1 billion USD (representing for 16.1%). 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 nearly 57.64 billion USD (accounting for 12.2% of the total investment capital), followed by Hanoi with 42 billion USD (or 8.9% of the total investment capital), Binh Duong with nearly 40.5 billion USD (representing 8.6% of the total investment capital).

(Detailed data in Appendix III attached)

II. FDI OUTFLOWS OF VIETNAM

In the first month of 2024, Vietnamese investors invested 11 new projects aboard and did not made adjustments to existing projects. Vietnam’s total newly-registered investment were about 16.2 million USD (8.6 times more year on year).

Vietnamese investors have invested in 7 sectors abroad. Of which, real estate took the lead (accounting for 33.2%), construction (30.9%) and mining (24.7%). Other industries account for a small ratio.

There were 6 countries and territories receiving investment from Vietnam in the first month of 2024, namely the United State (36.1%). Germany (33.2%), Laos (26.2%), Cambodia, South Korea and Sweden.

Accumulated as of January 20, 2024, Vietnam had 1,710 valid aboard investment projects with total registered investment capital of over 22.1 billion USD.

Vietnam’s investment aboard focuses mainly in: mining (31.6%); agriculture, forestry and fishery (15.5%). The areas receiving the most investment from Vietnam were Laos (24.8%); Cambodia (13.2%); and Venezuela (8.3%)./.

(Detailed data in Appendix IV and V attached)


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