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FDI attraction situation in Vietnam and Vietnam’s overseas investment in the first two months of 2024

Date 27/02/2024 - 17:39:00 | 782 views
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As of February 20, 2024, the total newly registered capital, adjusted and contributed capital to buy shares and buy contributed capital of foreign investors reached over 4.29 billion USD, rising 38.6% year-on-year. The capital generated by FDI projects was estimated at 2.8 billion USD, up 9.8% over the same period in 2023.

Accumulated to February 20, 2024, the whole country has 39,553 valid projects with a total registered capital of nearly 473.1 billion USD. The accumulated realised capital of foreign investment projects reached about 300 billion USD, equalling 63.4% of the total valid registered investment capital.

Details are as follows:

I. FDI INFLOWS OF VIETNAM

1. FDI attraction in the first two months of 2024

1.1. FDI performance:

Realised capital:

As of February 20, 2024, disbursement of FDI projects were estimated at about 2.8 billion USD, up 9.8% year-on-year.

Import and export performance:

Export: Export turnover of the foreign-invested sector increased sharply in the first two months of 2024. Export (including crude oil) was estimated over 48.87 billion USD, up 29.8% year-on-year, accounting for 72.9% of export turnover. Export (excluding crude oil) was 48.57 billion USD, rising 30.1% from a year earlier, accounting for 72.5% of the country’s export turnover.

Import: Imports of the foreign-invested sector attained 39.51 billion USD, an increase of 29.5% over the previous period and accounting for 64% of the country’s import turnover.

In the first two months of 2024, the FDI sector saw a trade surplus of over 8.9 billion USD including crude oil and over 8.6 billion USD excluding crude oil, while the domestic sector had a trade surplus of 4.29 billion USD.

1.2. Investment registration

As of February 20, 2024, the total newly registered capital, adjusted capital and capital contributions and share purchases of foreign investors stood at over 4.29 billion USD, up 38.6% 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 405 projects worth nearly 3.6 billion USD, were granted licenses, up 55.2% in number and double in value year-on-year.

Adjusted capital: There were 159 turns of project registering to adjust their investment (up 19.5% on-year) with a total additional capital of 442.1 million USD (down 17.4% year-on year).

Capital contribution and share purchases: There were 367 capital contribution and share purchases by foreign investors (down 16.6% year-on-year) with a value of over 255.4 million USD (down 68% year-on-year).

(Detailed data in Appendix I attached)

By sector:

Foreign investors poured funds into 16 out of 21 sectors in the national economic classification system, of which the processing and manufacturing industry took the lead with nearly 2.54 billion USD, making up 59.1% of the total and up 16.8% compared with the figure as the same period last year. The real estate came next with a total investment of approximately 1.41 billion USD, accounting for 32.7% of the total. Followed were wholesale and retail and professional activities, science and technology with nearly 125.2 million USD and nearly 76.4 million USD, respectively.

It is also worth noting that processing and manufacturing was the sector with the largest number of newly-registered projects (39.2%) and number of capital adjustment (62.3%). The wholesale and retail led in the number of capital contribution and share purchases (43.9%).

By counterpart:

There were 48 countries and territories investing in Vietnam in the first two months of 2024. Singapore was Vietnam’s leading source of foreign investment with over 2.08 billion USD, making up 48.5% of the total FDI registered in the country (2.1 times more year-on-year). Hong Kong (China) came second with approximately 525.7 million USD, making up 12.2% of the total, 5.1 times more than the figure as compared with the same period last year. Japan, China and so on.

Regarding the number of projects, China led in terms of number of newly-registered projects (accounting for 32.3%); South Korea topped the list when it comes to turns of capital adjustment (25.8%) and capital contributions and share purchases (28.9%).

By location:

The foreign investors had invested in 38 provinces and cities nationwide in the first two months of 2024. Ha Noi led the way with a total registered capital of nearly 914.4 million USD, making up 21.3% of the total and 24.4 times more from a year earlier. Quang Ninh ranked second with over 471.1 million USD, accounting 11% of the total. Followed by Thai Nguyen, Ba Ria - Vung Tau, Bac Ninh and so on.

Ho Chi Minh City was the best performer in attracting new projects (35.6%) and capital contributions and share purchases (71.1%) and turns of adjusted projects (18.9%).

(Detailed data in Appendix II attached)

2. Evaluation of the FDI performance in the first two months 2024

- The total registered investment capital in the first two months of 2024 continued to increase (up 38.6% year-on-year), but the upturn was slightly went down 1.6 percentage points compared to the previous month.

- Investment 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, Quang  Ninh, Thai Nguyen, Ba Ria - Vung Tau, Bac Ninh, Dong Nai, Bac Giang, Ho Chi Minh city, Hai Phong and Hung Yen. These ten localities accounted for 74.3% of the country’s newly-registered projects and 81.7% of investment capital in the first two months of 2024.

- Asian and traditional investors accounted the most proportion (those from Singapore, Hong Kong (China), Japan, China and South Korea). These five partners accounted for 77% of newly-registered projects and 85.5% of total national investment capital).

- New investment increased both in number of projects and capital. With an increase of 55.2% in the number of projects and some major projects worth hundreds of million USD, the total newly registered investment capital in the first two months of 2024 was more than 2 times compared to the figure of the same period and up 36.9 percentage points over the previous month.

- Although the added capital decreased over the same period, the downturn has been improved compared with previous month. The number of  projects adjusting their capital went up 19.5% year-on-year instead of the decrease of 15.7% in January 2024, showing investors were confident in Vietnam’s investment climate so they decided to expand their projects.

- Export of the FDI sector increased sharply compared to the same period and the previous month. With a trade surplus of over 8.9 billion USD (including crude oil) and 8.6billion USD (excluding crude oil), the FDI sector offset the trade deficit of 4.29 billion USD of the domestic business sector, helping the country have a trade surplus of about 4.63 billion USD in the first two months of 2024.

3. Accumulated foreign investment as of February 20, 2024

Accumulated as of February 20, 2024, the whole country has 39,553 valid FDI projects with a total registered capital of 473.1 billion USD. The accumulated realised capital of FDI projects is estimated at nearly 300 billion USD, equalling 63.4% 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 approximately 285.4 billion USD, accounting for 60.3% of the total investment capital. It was followed by real estate sector with over 69.6 billion USD (representing 14.7%); electricity production and distribution with 40. 7 billion USD (or 8.6%).

- By counterpart: There are 145 countries having valid investment projects in Vietnam. In which, South Korea ranked first with a total registered capital of over 86.1 billion USD (accounting for 18.2% of the total). Singapore ranked second with nearly 76.2 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 over 57.64 billion USD (accounting for 12.2% of the total investment capital), followed by Hanoi with nearly 42.1 billion USD (or 8.9% of the total investment capital), Binh Duong with over 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 two months of 2024, Vietnamese investors invested 17 new projects aboard and did not made adjustments to existing projects. Vietnam’s total newly-registered investment were more than 25 million USD (equivalent 21.7% year on year).

Vietnamese investors have invested in 8 sectors abroad. Of which, wholesale and retail took the lead (accounting for 39.4% of the total), real estate (21.5%) and construction (20%).

There were 11 countries and territories receiving investment from Vietnam in the first two months of 2024, namely the United State (26.6%), New Zealand (23.5%), Germany (21.5%), Laos and China.

Accumulated as of February 20, 2024, Vietnam had 1,716 valid aboard investment projects with total registered investment capital of approximately 22.12 billion USD.

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 (24.8%); Cambodia (13.2%); and Venezuela (8.3%)./.

(Detailed data in Appendix IV and V attached)


FDI.02-2024_E.xlsx Tải về

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