$8.8 billion of FDI entered Vietnam in the first four months

According to the Ministry of Planning and Investment's Foreign Investment Agency (FIA), FDI stood at $8.88 billion in the first four months of 2023, equivalent to just 82.1 per cent compared to the same time last year.

Over 750 new projects were granted investment registration certificates in the same period, with total registered capital of over $4.1 billion, up 65.2 per cent in the number of projects and up 11.1 per cent on-year in terms of capital.

The adjusted capital of almost 386 ongoing projects stood at about $1.66 billion, up 19.5 per cent on-year in number but down 68.6 per cent in capital terms. There were approximately 1,044 capital contributions and share purchases as of April 20, equivalent to $3.1 billion, showing an increase of 70.4 per cent over the same period last year.

In addition to the decrease in FDI, the country's disbursed capital also saw a slight decline of 1.2 per cent to $5.85 billion.

The FIA said that the on-year decrease in disbursed FDI capital has been narrowing as compared to the previous months of the year (2.2 per cent on-year in the first quarter and 4.5 per cent in the first two months of the year). At the same time, newly registered capital has been increasing, and sharply soared as compared to the previous month.

"The increase in the number of projects is much more significant than the rise in investment. That means small- and medium-sized investors are paying a lot of attention to Vietnam, and highly appreciating the nation's investment climate," noted the FIA's report.

The FIA census also indicated that FDI was seen in 18 out of the 21 economic sectors in the first four months. Of those, processing and manufacturing took the lead with $5.1 billion, capturing 57.8 per cent of the total, but saw a 17 per cent drop compared to the same period in 2022. Banking and finance ranked second with $1.5 billion, making up 17 per cent of the total and rising 12-fold on-year. This was followed by real estate and wholesale and retail with $972 million and $372 million respectively.

Singapore was the top foreign investor in Vietnam with close to $2.2 billion, accounting for 24.7 per cent of FDI into the country in the first four months of 2023, but representing a decrease of over 29.5 per cent on-year. Japan came second with $2 billion and China third with $752 million. They were followed by Taiwan, Hong Kong, and South Korea.

Foreign-invested projects still choose cities and provinces that have more advantageous infrastructural development, human resources, and clear administrative procedures, like Bac Giang, Dong Nai, Bac Ninh, Hanoi, Ho Chi Minh City, and Haiphong.