Ba Ria-Vung Tau leads the nation in FDI attraction in the first six months of 2024 . In the photo: The awarding of investment certificates during the conference unveiling the Ba Ria-Vung Tau Provincial Planning for 2021-2030 and vision to 2050

According to data released by the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, as of June 20, 2024, Vietnam witnessed a robust influx of foreign direct investment (FDI), totaling nearly US$15.19 billion. This figure reflects a 13.1% increase compared to the previous year. The distribution of investments reveals a dynamic pattern: investments in new projects surged, with foreign investors committing approximately US$9.54 billion across 1,538 new initiatives, marking increases of 46.9% and 18.9% year-on-year, respectively. Meanwhile, investments in existing projects saw an uptick in value, amounting to over US$3.95 billion despite a slight decrease in the number of projects, indicating a 35% rise in value. In contrast, the investment fund for equity purchases experienced a decline, with foreign investors engaging in 1,420 equity transactions valued at approximately US$1.7 billion, marking respective drops of 10.9% and 57.7%.

By industry, foreign investors invested in 18 out of 21 industries. The processing and manufacturing sector received the most FDI fund of nearly US$10.69 billion, accounting for 70.4% of the total and rising 26.3% year on year. The real estate business sector ranked second with more than US$2.47 billion, accounting for nearly 16.3% of the total and growing 61.5% year on year. It was followed by the wholesale and retail sector with about US$614 million and the professional, scientific and technological service sector with over US$452 million.

By project, the processing and manufacturing sector took the lead, accounting for 35.2% of new projects and 67.9% of revised projects. The wholesale and retail sector led with the highest number of corporate equity purchases (accounting for nearly 43.5%).

By investment partner, 84 countries and territories invested in Vietnam in the first six months of 2024. Singapore was the biggest investor with nearly US$5.58 billion, accounting for nearly 36.7% of the total, rising by 86% year on year. Japan ranked second with more than US$1.73 billion, equal to 11.4% of the total and down 21.6%. Other big investors included Hong Kong (China), South Korea and China.

By scale, China had the most of the new investment projects (accounting for 29.1%) while South Korea led in revised projects (24.8%) and equity purchase deals (26.4%).

By locality, foreign investors invested in 48 provinces and cities across the country in the January-June period. Bac Ninh province received the biggest amount of nearly US$2.58 billion, or nearly 17% of the total registered FDI fund and more than 3.1 times higher than a year-ago period. Ba Ria-Vung Tau province came second with roughly US$1.54 billion, accounting for 10.1% of the total and more than 12 times higher than a year ago. Quang Ninh ranked third with over US$1.36 billion, accounting for nearly 9%. Other big recipients of FDI consisted of Hanoi, Hai Phong and Ho Chi Minh City.

By the number of projects, Ho Chi Minh topped the country in both the number of new projects (accounting for 38.8%) and equity purchase deals (accounting for nearly 71.5%). Bac Ninh led the number of revised projects (accounting for 13.5%).

As of June 20, newly registered FDI in processing and manufacturing accounted for 84.3% of total registrations

In the first six months of the year, realized FDI capital was estimated at US$10.84 billion, a year-on-year growth of 8.2%. This was the biggest H1 realized FDI value in five years.

Commenting on the FDI performance in the first six months of 2024, FIA said that both realized investment capital and total registered investment capital both increased in the reporting period, respectively adding 0.4 percentage points and 11.1 percentage points from the first five months of the year.

In June alone, the amount of added investment capital increased significantly as compared to earlier months of the year, with nearly US$1.9 billion, accounting for 47.3% of the total added investment find in six months. This helped bring the total added investment capital in six months to rise 35% instead of falling as in previous months.

The FDI fund was largely concentrated in provinces and cities with many advantages in investment attraction (good infrastructure, stable human resources, administrative procedure reform efforts and active approach to investment promotion) like Bac Ninh, Ba Ria-Vung Tau, Quang Ninh, Hanoi, Hai Phong, Ho Chi Minh City, Dong Nai, Bac Giang, Binh Duong and Hung Yen. The top 10 localities alone attracted 79.5% of new projects and 77.9% of the country's FDI capital in five months.

In particular, foreign investors registered many large projects in semiconductors, energy (manufacturing batteries, photovoltaic cells and silicon bars), electronic component manufacturing, and manufacturing added value products. For example, a semiconductor materials and equipment manufacturing, assembly and testing factory (of Singapore) in Bac Ninh province registered to expand the project by an additional US$1.07 billion

As of June 20, 2024, Vietnam had 40,544 active FDI projects, boasting a cumulative pledged capital of US$484.77 billion. Of this substantial amount, US$308 billion was disbursed, representing a 63.5% realization rate of the total pledged investment capital.