Vietnam achieves positive FDI attraction results in the first 6 months of 2024

(MPI) - With the drastic and timely direction of the Government and the Prime Minister and the close coordination of ministries, branches and localities in proactively approaching and removing bottlenecks and legal barriers hindering business investment activities of enterprises, in the first 6 months of 2024, Vietnam has achieved quite positive results in attracting and implementing foreign direct investment (FDI).

Illustration photo.

The quality of investment projects has improved significantly.

According to the Ministry of Planning and Investment , foreign investors continue to consider Vietnam an important investment destination in the medium and long term, in the context of the global supply chain undergoing restructuring.

The figures show that the total registered investment capital reached nearly 15.2 billion USD, up 13.1% over the same period in 2023. Both new investment capital and adjusted capital increased over the same period with increases of 46.9% and 35% respectively. Realized capital is estimated at 10.84 billion USD, up 8.2% over the same period in 2023. The increase in both registered and realized FDI capital will further promote domestic activities.

There has been a significant improvement in the quality of investment projects. Many large projects in the fields of semiconductors, energy (production of batteries, photovoltaic cells, silicon bars), components, electronic products, and products with high added value have received new investments and capital expansion in the first 6 months of the year.

Vietnam's FDI attraction prospects this year will maintain a positive pace.

The world economic outlook in 2024 is forecast to recover weakly and will face many major risks and challenges due to complicated developments after the Covid-19 pandemic, geopolitical instability and competition between major countries continue to create changes and impact the global economy in the medium and long term.

New standards and even interventions by some governments to guide investment activities may influence FDI trends. FDI flows are growing slowly and increasingly concentrated among countries with geopolitical links, especially in strategic sectors.

However, according to the current assessment of many domestic and foreign financial institutions, Vietnam's prospects for attracting FDI this year will maintain a positive pace thanks to three core factors. These are the important and increasingly consolidated role in the supply chain diversification strategy of multinational manufacturers; Vietnam's economic growth will recover more positively this year; and the macro economy will be stable.

In addition, Vietnam has investment prospects in many cutting-edge industries and the technology sector is undergoing a lot of innovation and digitization. Similarly, the renewable energy sector is attracting attention, with an increasing focus on clean energy sources such as solar and wind power to sustainably enhance Vietnam’s electricity supply.

Investors' confidence in Vietnam continues to be strengthened, existing investors believe in the Government's policies and the future development of Vietnam's economy, and many investors consider Vietnam an attractive destination with much potential and room for growth in the medium and long term.

Vietnam's position in the electricity and electronics supply chain is increasingly consolidated, so there is a tendency for many corporations producing electronic products to come to Vietnam.

However, Vietnam must actively overcome some current bottlenecks to continue attracting investment, including urgently preparing skilled human resources, especially in the field of semiconductor electronics, and overcoming local power shortages in some localities with many electronics industry projects.

Along with that, review procedures to simplify and shorten processing time, especially procedures after granting investment registration certificates such as construction permits, fire prevention and fighting permits, etc.

The Government and the Prime Minister have issued timely instructions so that in the coming time, all levels and sectors will focus on drastic solutions to resolve these bottlenecks. Accordingly, there will be positive impacts on the results of attracting FDI in the last 6 months of 2024, continuing to maintain positive growth momentum, reaching a level equivalent to or higher than that of 2023./.

As of June 20, 2024, the total newly registered capital, adjusted capital and capital contribution to buy shares and purchase capital contributions (GVMCP) of foreign investors reached nearly 15.2 billion USD, an increase of 13.1% over the same period in 2023. The realized capital of foreign investment projects is estimated at about 10.84 billion USD, an increase of 8.2% over the same period in 2023. Specifically:

Newly registered capital: 1,538 new projects were granted investment registration certificates (up 18.9% over the same period), with total registered capital reaching nearly 9.54 billion USD (up 46.9% over the same period).

Adjusted capital: There were 592 projects registered to adjust investment capital (down 6.3% over the same period), total registered capital increased to more than 3.95 billion USD (up 35% over the same period).

Capital contribution and share purchase: There were 1,420 GVMCP transactions by foreign investors (down 10.9% over the same period), the total value of capital contribution reached nearly 1.7 billion USD (down 57.7% over the same period).

As of June 20, 2024, the country has 40,544 valid FDI projects with a total registered capital of 484.77 billion USD. The accumulated realized capital of foreign investment projects is estimated at about 308 billion USD, equivalent to 63.5% of the total registered investment capital in effect.

Bao Linh

Ministry of Planning and Investment

Source: https://www.mpi.gov.vn/portal/Pages/2024-7-11/Viet-Nam-dat-ket-qua-thu-hut-FDI-tich-cuc-trong-6-qcrdu6.aspx