Registered FDI capital in Vietnam still maintains high growth rate

Realized capital of foreign investment projects in Vietnam continues to maintain growth momentum.

According to the Foreign Investment Agency, as of May 20, total foreign direct investment (FDI) in Vietnam reached more than 11.07 billion USD, up 2% over the same period in 2023. Of which, new investment still maintained a high growth rate compared to the same period in terms of both number of projects and investment capital.

Specifically, in terms of newly registered capital, the whole country has 1,227 new projects granted Investment Registration Certificates with total registered capital reaching nearly 7.94 billion USD, an increase of 27.5% in the number of new projects and an increase of 50.8% in newly registered capital.

According to the Foreign Investment Agency, the sharp increase in newly registered FDI capital compared to the same period was due to the high number of new projects and projects with large investment capital (more than 400 million USD and more than 600 million USD).

Regarding adjusted capital, 440 projects registered to adjust their investment capital, down 9.3%; the total registered capital increased by more than 2.08 billion USD, down 8.7%. Capital contribution and share purchase activities by foreign investors continued to decrease by 9.4% in quantity and 68.2% in total value of contributed capital.

Commenting on the investment attraction situation, the Foreign Investment Agency said that in May, the largest amount of adjusted investment capital was recorded since the beginning of 2024. However, in the first 5 months, although the total adjusted investment capital still decreased compared to the same period, the decrease has gradually improved, increasing by 16.9 percentage points compared to the first 4 months of 2024.

The largest investment partners in the first 5 months of the year were all traditional partners of Vietnam and came from Asia. The 5 leading countries/territories: Singapore, Hong Kong (China), Japan, China, and South Korea accounted for 73% of new investment projects and 73.5% of the total registered investment capital of the country.

Many large FDI projects in energy sectors such as battery production, photovoltaic cells, silicon bars, components, electronic products, and high value-added products have received new investment and capital expansion since the beginning of the year.

In terms of investment value in national economic sectors, the order between sectors has not changed as the largest capital flow is still concentrated in the processing and manufacturing industry with an investment value of more than 7.43 billion USD, accounting for 67.1% of total registered investment capital, up 11.9% over the same period. In terms of the number of projects, this is also the leading sector in terms of the number of new projects (accounting for 35.9%) and capital adjustment (accounting for 62.3%).

Foreign investors have poured capital into 47 provinces and cities across the country. Of which, Ba Ria-Vung Tau rose to the top of the list of investment attraction with a total registered investment capital of more than 1.52 billion USD, accounting for 13.8% of the total investment capital of the country, more than 12 times higher than the same period. Hanoi ranked second with nearly 1.14 billion USD, accounting for 10.3% of the total registered investment capital but down 39% over the same period. Bac Ninh ranked third with a total registered investment capital of more than 1.06 billion USD, accounting for nearly 9.6% of the total investment capital of the country. Followed by: Ho Chi Minh City, Dong Nai, Quang Ninh, ...

The realized capital of foreign investment projects is estimated at about 8.25 billion USD, an increase of 7.8% over the same period in 2023.

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