The northern province of Bac Ninh continues to lead in foreign direct investment (FDI) attraction in Vietnam, securing $4.7 billion up to October, representing a 315.5 per cent increase on-year.

Samsung remains the largest foreign-invested enterprise in Vietnam, Photo: Le Toan

This growth underscores Bac Ninh’s appeal to foreign investors and solidifies its position as a key industrial hub in northern Vietnam, largely due to its favourable investment climate, modern infrastructure, and ample labour force.

To reach its annual FDI target, Bac Ninh will need an additional $2.3 billion in the last two months. With current growth momentum and recent investment commitments, the province appears on track.

In September, prominent investors pledged billions more in FDI for 2024. Specifically, at an investment promotion conference in September, Bac Ninh People’s Committee awarded approvals totalling $5.5 billion for major projects with both domestic and international partners. Among these, South Korean conglomerate Samsung committed to an additional $1.8 billion, raising its total investment in Yen Phong Industrial Park to $6.5 billion. This significant contribution brings Bac Ninh’s FDI to $6.5 billion, nearly reaching the year’s target.

The northern province of Quang Ninh is also vying to achieve its 2024 goals. In the first 10 months, Quang Ninh attracted $1.97 billion, reaching 63.6 per cent of its annual target and an on-year growth rate of 65.66 per cent. The third quarter saw a threefold increase compared to the same period in 2023.

“In the first 10 months of 2024, the province faced ups and down, including the impact of Typhoon Yagi. Despite this, Quang Ninh is steadfast in reaching its $3 billion FDI target for 2024,” said Vi Ngoc Bich, Permanent Vice Chairman of Quang Ninh People’s Council.

She emphasised the need for increased investment promotion abroad and on-site support to address business challenges and expedite land clearance.

“As time runs short in 2024, meeting annual goals will require greater efforts from all levels, departments, and agencies. These units must closely monitor specific tasks and responsibilities,” she added.

Other major localities, including Ho Chi Minh City, Haiphong, and Hanoi, are also working towards their annual targets. These areas have advantages in reaching their goals, though Nguyen Van Toan, vice chairman of the Vietnam Association of Foreign-Invested Enterprises, cautioned against complacency amid global economic uncertainties.

“While these localities have better conditions, the complex global landscape could pose challenges. Key economies, our primary trade and investment partners, are recovering slowly and continue to tighten monetary policies,” Toan said. “Domestically, natural disasters and climate change remain unpredictable. Price fluctuations, particularly in USD exchange rates, gold, crude oil, and essential goods, are influencing decisions.”

Vietnam attracted approximately $27.25 billion in FDI in the first 10 months of 2024, an increase of 1.9 per cent on-year, according to the Foreign Investment Agency under the Ministry of Planning and Investment. In this period, almost 2,750 new projects were granted investment registration certificates worth over $12.23 billion, a 1.4 per cent increase in project numbers but a 2.5 per cent decline in capital on-year.

Adjusted capital for around 1,150 ongoing projects reached nearly $8.35 billion, a 6 per cent rise in project numbers and a 41.7 per cent increase in capital. Meanwhile, almost 2,700 capital contributions and share purchases were valued at $3.68 billion, representing declines of 10.4 per cent and 29 per cent, respectively.