[NEWS] – FOREIGN INVESTORS “PILL” NEARLY USD 16.8 BILLION INVESTMENT IN VIETNAM IN 8 MONTHS

According to the General Statistics Office, foreign direct investment (FDI) into Vietnam in the first eight months of 2022 was estimated at $12.8 billion, up 10.5% over the same period last year. This is the highest amount of foreign direct investment in Vietnam in the first eight months of the year in the past five years.

The Foreign Investment Department (Ministry of Planning and Investment) said that, as of August 20, the total newly registered capital, adjusted and contributed capital to buy shares and purchase capital contributions of foreign investors reached nearly $16.8 billion, down 12.3% over the same period in 2021.

The trend of reducing newly registered capital continued for 8 months when the total registered capital reached 6.35 billion USD, down 43.9% over the same period.

Meanwhile, additional registered capital (US$7.5 billion, up 50.7% over the same period) and capital contribution to buy shares from foreign investors (reaching US$2.9 billion, up 3.6%) over the same period) continues to be the mainstay of FDI inflows.

Many experts believe that, although Vietnam is still considered an attractive investment destination, in the context of a decline in global FDI inflows due to recent world developments such as Russia-Ukraine tensions, and supply chain disruption, high inflation... the new FDI inflows into Southeast Asian countries will have certain impacts. Investors become more cautious and cautious with new investment decisions.

Although newly registered capital has not fully recovered after the interruption of anti-epidemic measures in 2021, the realized capital of foreign investment projects in 8 months still reached 12.8 billion USD, up 10. 5% over the same period in 2021. This is a signal of foreign investors’ confidence in Vietnam’s investment prospects in the near future.

Out of 21 economic sectors, foreign investors have invested in 18 industries. The manufacturing and processing industry continued to lead with a total investment of over 10.7 billion USD, accounting for 63.9% of the total registered investment capital.

Real estate business ranked second with total investment capital of over 3.3 billion USD, accounting for 19.9% ​​of total registered investment capital. Next are the professional science and technology activities; information and communication with a total registered capital of nearly $620.8 million and $518.9 million, respectively.

In terms of the number of new projects, wholesale and retail, the manufacturing and processing industry and professional science and technology activities are the industries that attract the most projects, accounting for 30.3%, 25, respectively. 3% and 16.1% of total projects.

Currently, 94 countries and territories have invested in Vietnam in the first 8 months of 2022.

Singapore leads the way with a total investment of over 4.53 billion USD, accounting for 27% of total investment capital in Vietnam, down 27% over the same period in 2021; Korea ranked second with nearly 3.5 billion USD, accounting for nearly 21% of total investment capital, up 43.7% over the same period. Japan ranked third with a total registered investment capital of nearly 1.49 billion USD, accounting for 10.8% of total investment capital.

Foreign investors have invested in 53 provinces and cities across the country in the first eight months of 2022. Ho Chi Minh City leads the way with a total registered investment capital of over $2.7 billion, accounting for 16.1. % of total registered investment capital and increased 24.4% over the same period in 2021.

Recent strong developments in FDI investment activities create many opportunities for Vietnamese enterprises to connect business networks with foreign enterprises. In order to help businesses grasp and sustain international trade activities, Indochina Holdings provides capital mobilization FDI services with a team of experts with many years of experience. From there, creating the strength of the business and meeting the strict standards of foreign partners.

Cao Duy