11 months, FDI attraction reached nearly 29 billion USD

Foreign investment attraction situation in the first 11 months of 2023

According to the latest report from the Ministry of Planning and Investment on the situation of attracting foreign direct investment (FDI), as of November 20, 2023, the total registered capital for new investments, adjustments, and capital contributions through share purchases and equity investments by foreign investors reached nearly US$28.85 billion, an increase of 14.8% compared to the same period last year, and a slight increase of 0.1 percentage point compared to the first 10 months of 2023. Aside from adjusted investment capital decreasing, new investment capital and equity investments continued to increase compared to the same period last year.

Specifically, 2,865 new projects were granted Investment Registration Certificates (a 58.1% increase year-on-year), with a total registered capital of over US$16.41 billion (a 42.4% increase year-on-year); 1,152 projects registered for investment capital adjustments (a 15.9% increase year-on-year), with a total additional investment capital of over US$6.47 billion (a 32.1% decrease year-on-year); and 3,166 foreign-invested capital contribution transactions (a 4% decrease year-on-year), with a total capital contribution value of nearly US$5.97 billion (a 46.4% increase year-on-year).

Foreign investors have invested in 18 out of the 21 national economic sectors. The manufacturing industry led with a total investment of over US$20.97 billion, accounting for nearly 72.71% of the total registered investment and increasing by 40.2% compared to the same period last year. The real estate business ranked second with a total investment of over US$2.87 billion, accounting for nearly 10% of the total registered investment, a decrease of 31.4% compared to the same period last year. The finance and banking, wholesale and retail sectors ranked third and fourth with total registered capital of over US$1.54 billion (almost 58.5 times higher) and nearly US$1.04 billion (an increase of 12.9%), respectively.

In terms of the number of new projects, the manufacturing industry also leads in the number of new projects (accounting for 32.9%) and capital adjustments (accounting for 54.1%). Wholesale and retail trade leads in the number of GVMCP transactions (accounting for 40.9%).

In the first 11 months of 2023, 110 countries and territories invested in Vietnam. Singapore led with a total investment of nearly US$5.15 billion, accounting for over 17.8% of total investment in Vietnam, a decrease of 10.9% compared to the same period in 2022; Hong Kong ranked second with over US$4.33 billion, accounting for 15% of total investment, more than 2.2 times higher than the same period. South Korea ranked third with a total registered investment of over US$4.17 billion, accounting for nearly 14.5% of total investment, a slight increase of 1.2% compared to the same period. Following them were China, Japan, Taiwan (China), etc.

In terms of the number of projects, China leads in the number of new projects (22.1%). South Korea leads in the number of capital adjustments (26.2%) and GVMCP (27.9%).

Foreign investors invested in 56 provinces and cities nationwide during the first 11 months of 2023. Quang Ninh led in attracting investment capital with a total registered investment of nearly US$3.11 billion, accounting for nearly 10.8% of the total registered investment capital, an increase of 42.3% compared to the same period in 2022. Ho Chi Minh City ranked second with a total registered investment capital of over US$3.08 billion, accounting for 10.7% of the total investment capital nationwide, a decrease of 12.9% compared to the same period. Following closely behind were Hai Phong, Bac Giang , Hanoi, and others.

In terms of the number of projects, Ho Chi Minh City leads the country in both the number of new projects (38%), the number of adjusted projects (25.3%), and the number of GVMCP projects (66.6%).

Exports (including crude oil) from the FDI sector are estimated at US$237.16 billion, down 6.9% year-on-year, accounting for 73.3% of total export turnover. Exports excluding crude oil are estimated at US$235.42 billion, down 6.8%, accounting for 72.8% of the country's total export turnover.

Imports by the FDI sector are estimated at over $192 billion, down 11.1% compared to the same period last year and accounting for 64.3% of the country's total import turnover.

Despite a decline in exports during the first 11 months of 2023, the FDI sector still recorded a trade surplus of $45.1 billion including crude oil and nearly $43.4 billion excluding crude oil. Meanwhile, the domestic business sector had a trade deficit of over $20.4 billion.

As of November 20, 2023, it is estimated that foreign investment projects have disbursed approximately US$20.25 billion, an increase of 2.9% compared to the same period in 2022, and a slight increase of 0.5 percentage points compared to the first 10 months of 2023.

Vietnam's outbound investment situation in the first 11 months of 2023

In the first 11 months of 2023, Vietnam's total newly registered and adjusted outbound investment reached over $395 million, equivalent to 83.3% compared to the same period in 2022.

Total outbound investment in the first 11 months decreased compared to the first 10 months (US$424.34 million) due to a US$35 million reduction in investment capital for a Vietnam Airlines investment project in November.

Of these, 117 projects were granted new investment registration certificates, with a total registered capital of over US$257.28 million (65% compared to the same period); and 24 projects underwent adjustments with a total additional investment capital of nearly US$137.75 million (a 75.9% increase compared to the same period).

Vietnamese investors have invested abroad in 15 sectors. Wholesale and retail trade led with 40 new investment projects and 7 capital adjustments, totaling nearly US$153.65 million in registered investment capital, accounting for 38.9% of total registered overseas investment. Information and communication technology ranked second with over US$120.4 million, accounting for 30.5%; followed by electricity production and distribution, agriculture, forestry, fisheries; manufacturing; and more.

Twenty-six countries and territories received investment from Vietnam in the first 11 months of 2023. Leading the way was Canada with one new investment project and two capital adjustments, bringing the total registered investment capital to nearly US$150.3 million, accounting for 38% of the total investment. This was followed by Singapore, Laos, Cuba, and others.

As of November 20, 2023, Vietnam had 1,694 active overseas investment projects with a total investment capital of nearly US$22.1 billion. Vietnamese overseas investment is most concentrated in the mining sector (31.6%); and agriculture, forestry, and fisheries (15.5%). The countries receiving the most investment from Vietnam are Laos (24.8%); Cambodia (13.2%); and Venezuela (8.3%).

Tue Minh

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