Vietnam’s Foreign Direct Investment Soars to New Heights
As of October 7, 2023, Vietnam is experiencing a significant upsurge in foreign direct investment (FDI), marking its highest disbursement in five years. The National Statistics Office of Vietnam, under the Ministry of Finance, reports that the total disbursement from January to September has reached an impressive 18.8 billion USD. This figure not only reflects a robust economic climate, but also signifies a year-on-year growth of 8.5%.
Breakdown of FDI Disbursements
Diving deeper into the specifics, the breakdown of this investment reveals a strong focus on several key sectors. The manufacturing and processing industry stands out, claiming the lion’s share with a disbursement of 15.56 billion USD. This figure underscores Vietnam’s growing reputation as a manufacturing hub in Southeast Asia.
In addition to manufacturing, the real estate sector has also attracted significant foreign investment, with 1.37 billion USD disbursed. This resurgence in realty investments reflects a changing landscape as more foreign investors recognize Vietnam’s potential for growth in urban development.
Another notable sector is the production and distribution of electricity, gas, steam, and air conditioning, which garnered 598.7 million USD. This investment is crucial as Vietnam strives to meet its growing energy needs alongside its rapid industrialization.
Total Registered Foreign Investment
As of September 30, 2023, total registered foreign investment has soared to 28.54 billion USD, marking a notable year-on-year increase of 15.2%. This comprehensive figure includes newly registered capital, adjusted investment capital, and share purchases by foreign investors, showcasing the broader confidence in Vietnam’s economic prospects.
During the first three quarters, authorities granted licenses for 2,926 new projects, which collectively totaled 12.39 billion USD. Interestingly, while the number of new projects has increased by 17.4% compared to the same period last year, the registered capital for these projects has seen a decline of 8.6%, indicating a shift in investment strategies.
Surge in Adjusted Capital
One of the most striking developments has been the substantial growth in adjusted capital for ongoing projects, which surged by an impressive 48% to reach 11.32 billion USD. This demonstrates not only ongoing confidence in existing projects but also a willingness among foreign investors to commit further resources to Vietnam. Additionally, foreign investors have injected 4.84 billion USD through capital contributions and share purchases, reflecting a robust 35% increase from last year.
Key Countries in Vietnam’s FDI Landscape
Geographical analysis of the investor landscape highlights that Singapore holds the top position, having registered investments amounting to 3.43 billion USD. Following closely is China, which has invested 2.88 billion USD. Hong Kong (China) is also part of the mix with an investment of 1.06 billion USD.
Interestingly, Sweden has emerged as a notable contributor with an investment of 1 billion USD, a clear indication of the diversity in Vietnam’s foreign investment sources. Further down the list, Japan, Taiwan (China), and the Republic of Korea are also making their mark with contributions of 918.4 million USD, 778.9 million USD, and 565.2 million USD, respectively.
This diverse mix of investments reinforces Vietnam’s increasing appeal as a dynamic and evolving market for foreign investors, further solidifying its prominence in the region.