A corner of Vietnam-Singapore Industrial Park in Binh Duong province (Photo: VNA)

Hanoi - Vietnam reached more than 14 billion USD in foreign direct investment (FDI) in the first six months of 2022, announced the Ministry of Planning and Investment (MPI).

The ministry’s data showed that as of June 20, 2022, the total newly registered capital, adjusted and contributed capital to buy shares, buy contributed capital of foreign investors reached 14.03 billion USD, as much as 91.1% over the same period in 2021.

Of which, 752 new projects were granted investment registration certificates, down 6.5% compared to the same period, with a total registered capital of over 4.94 billion USD, down 48.2% over the same period.

In addition, there were 487 projects registering to adjust their investment capital, up 5.9% over the same period, with the total additional registered capital reaching nearly 6.82 billion USD, up 65.6% compared to the same period last year.

There were also 1,707 capital contributions and share purchases by foreign investors in the first half, down 8% over the same period, with the total value of contributed capital reaching over 2.27 billion USD, up 41.4% over the same period last year.

The ministry’s Foreign Investment Agency said that although newly registered capital has not fully recovered after the interruption of anti-pandemic measures in 2021, adjusted capital, capital contribution and share purchases have continued to increase sharply at 65.6% and 41.4% respectively.

The Foreign Investment Agency said though adjusted capital decreased in March and May, the remaining months increased sharply with an increase ranging from 90% to nearly 4.7 times compared to the same months of 2021.

In the first six months of 2022, foreign investors poured funds into 18 industries out of a total of 21 national economic sectors. Of which, the processing and manufacturing industry continued to lead with a total investment of nearly 8.84 billion USD, accounting for nearly 63% of the total registered investment capital. The real estate sector ranked second with total investment capital of more than $3.15 billion, accounting for 22.5% of total registered investment capital.

Next came information and communication industries, scientific and technological activities with total registered capital of nearly 442.6 million USD and 408.5 million USD respectively.

However, in terms of the number of new projects, wholesale, retail, processing, manufacturing and scientific and technological professional activities were the industries that attracted the most projects, accounting for 30.1%, 25.4% and 16.5% of the total projects, respectively.

Regarding investment partners, 84 countries and territories invested in Vietnam in the first six months of this year. Among which, Singapore led with a total investment capital of more than 4.1 billion USD, accounting for 29.5% of total investment capital in Vietnam. South Korea ranked second with over 2.66 billion USD, accounting for nearly 19% of total investment capital.

By investment location, foreign investors invested in 49 provinces and cities across the country in the first six months of 2022. Binh Duong led the way with a total registered investment capital of more than 2.53 billion USD, accounting for 18% of total registered investment capital and up 98.2% over the same period in 2021. Ho Chi Minh City ranked second with a total investment capital of more than 2.2 billion USD, accounting for 15.8% of the total capital, up 55.2% over the same period.

According to the Foreign Investment Agency, realised investment capital of foreign investment projects in the first six months of 2022 increased by 8.9% compared to the same period in 2021. That shows that enterprises are constantly recovering, maintaining and expanding production and business activities.

Accumulated to June 20, 2022, the whole country has 35,184 valid projects with a total registered capital of over 427.97 billion USD. The accumulated realised capital of foreign investment projects is estimated at nearly 261.66 billion USD, equaling 61.1% of the total valid registered investment capital.

A representative of the Foreign Investment Agency further said: "The Russia-Ukraine conflict does not have a significant direct impact on foreign investment in Vietnam because the investment of Russia and Ukraine only accounts for a small proportion of the total investment capital, accounting for 0.23% of total investment capital, but has an indirect effect through high prices and causes supply chain disruptions."

However, in the medium and long term, the conflict could lead to a trend of shifting investment out of Russia and Ukraine to Asian countries. Vietnam can also benefit from this shift in investment capital. However, this trend is not yet clear.