FDI disbursement rises 15% in 11 months
Disbursed foreign direct investment capital in Vietnam reached $19.68 billion in the year to November 20, up 15.1% year-on-year.
Capital expansion of operational FDI projects surged 23.3% to $9.54 billion in the 11-month period. A total 994 projects saw adjustments, up 13.3%.
Strong capital expansion was seen in many high-tech and electronics manufacturing projects including those of South Korean giant Samsung, according to the Foreign Investment Agency (FIA).
Samsung Electronics HCMC CE Complex in Ho Chi Minh City received approval in June to add $841 million to its capital. The complex, now with a total investment capital of $2.84 billion, is its second-largest manufacturing site worldwide for TV screens and home electronics, the largest being in Mexico.
Another unit, Samsung Electro-Mechanics Vietnam in the northern province of Thai Nguyen, got the go ahead for an additional $920 million in February, raising its total investment to $2.27 billion.
Capital contribution for stake acquisitions went down 7% to nearly $4.08 billion, while the number of deals dropped 4.8% to 3,298.
Newly-registered capital, however, "has not fully recovered due to the lingering effects of anti-pandemic measures in 2021 and global geo-political turbulence," according to the FIA.
The capital for 1,812 newly-registered projects in the first 11 months was $11.5 billion, up 14.9% and down 18% year-on-year, respectively.
Total registered capital, which includes newly registered capital, additional capital of operational projects, and capital contributions for stake acquisitions, was $25.1 billion, down 5%.
Manufacturing and processing received the biggest volume of registered FDI with $14.96 billion, accounting for 59.5% of the country's total, followed by the real estate sector with $4.19 billion and 16.7%, respectively.
The sectors of wholesale and retail, processing and manufacturing, and science and technology attracted the largest number of new projects, accounting for 29.9%, 24.5% and 16.5% of the total, respectively.
Of the 107 countries and territories investing in Vietnam this year, Singapore led the pack with $5.78 billion or 23% of the total, down 24% year-on-year.
Japan ranked second with nearly $4.6 billion or 18.3%, up 24.4%. South Korea was in third position with $4.1 billion or 16.4%, followed by mainland China, Hong Kong and Denmark.
Ho Chi Minh City was the largest recipient in terms of registered FDI in the 11-month period with over $3.54 billion, accounting for 14.1% of the country's total, up 3.3% year-on-year.
Binh Duong province ranked second with $3.03 billion, accounting for 12.1%, up 44.9%. The figures for Quang Ninh, which ranked third, were $2.19 billion, 8.7% and 88.9%, followed by Bac Ninh, Hai Phong and Thai Nguyen.
From 1986 when Vietnam introduced its open-door policy to November 20, 2022, the country licensed 36,109 FDI projects that are still valid, with total investment capital of $437.52 billion.
FDI disbursement as of November 20 was $271.3 billion, equivalent to 62% of the registered capital of valid FDI projects.
According to property services company Savills, Vietnam, on a competitive basis versus China, other parts of Southeast Asia or India, offers a relative low-risk environment to do business.
“Vietnam has a very strong work ethic and highly educated labor force. We've already seen certainly up in places like Hanoi and Ho Chi Minh City high-end manufacturing in the technology, and electronics marketplace. With that growth of what I would call a base industry and a high-grade base industry in technology and electronics, it attracts investors,” said Christopher Marriott, Savills CEO, Southeast Asia.
Economist Brian Lee Shun Rong at Maybank, Malaysia's largest financial services group, told Forbes Vietnam’s recent business forum that Vietnam, a rising star in the global supply chain, has the potential to become a new tiger in Asia.
Standard Chartered Bank on October 12 revised up its Vietnam GDP growth forecast for this year to 7.5% from the previous 6.7%, and to 7.2% for next year from 7%, following the country's robust Q3 growth of 13.7% year-on-year.
- Read More
Shaping a waterway into a key shipping channel: Viconship gets dredging nod
A major dredging project will allow safer ship navigation and increased cargo transportation capacity on the Hai Phong shipping channel, thereby enhancing competitiveness of Vinconship’s port system, says the company.
Companies - Mon, November 18, 2024 | 7:08 pm GMT+7
Former assistant to State President appointed general director of state-owned financial firm HFIC
Truong Tuan Anh, an official at the State President Office and former assistant to a state president, has been appointed general director of Ho Chi Minh City Finance and Investment Stated-owned Company (HFIC).
Companies - Mon, November 18, 2024 | 5:35 pm GMT+7
MBBank’s takeover of weak OceanBank to have limited impact on its credit profile: Fitch
Military Commercial Joint Stock Bank's (MBBank) takeover of Ocean Commercial Bank Limited (OceanBank) will have limited financial impact on the former’s credit profile, Fitch Ratings said Monday.
Banking - Mon, November 18, 2024 | 5:06 pm GMT+7
Win-win philosophy indispensable for sustainable growth: Bamboo Capital founder
A win-win cooperation strategy is not just desirable, but a necessary condition for sustainable development, says Nguyen Ho Nam, founder of Vietnam’s private conglomerate Bamboo Capital Group.
Bamboo Capital - Mon, November 18, 2024 | 4:46 pm GMT+7
Vietnam central bank resumes selling gold after 1-month hiatus
The State Bank of Vietnam (SBV), the country's central bank, on Monday announced that it will reactivate the sale of SJC-branded gold bars to meet market demand.
Banking - Mon, November 18, 2024 | 4:02 pm GMT+7
Vietnam 2nd biggest market of Thai giant Central Retail in Jan-Sept
Thailand’s leading retailer Central Retail earned a revenue of THB37.99 billion ($1.09 billion) in Vietnam in the first nine months of this year, up 0.9% year-on-year.
Companies - Mon, November 18, 2024 | 4:00 pm GMT+7
Singapore firm to invest in $19.7 mln garment factory in central Vietnam
Singaporean-based HGQ ASIA Pte., Ltd will pour nearly VND500 billion ($19.7 million) into building a garment factory in the south-central province of Binh Dinh.
Industries - Mon, November 18, 2024 | 2:23 pm GMT+7
IP developer KBC to raise $236 mln to restructure debts, augment capital
Kinhbac City Development Holding Corporation (KBC), a leading industrial real estate developer in Vietnam, will offer 250 million shares to 11 investors for more than $6,000 trillion ($236.4 million) to restructure its debts.
Companies - Mon, November 18, 2024 | 2:17 pm GMT+7
Vietnam's chemical giant Vinachem targets $500 mln trade turnover with Brazil in 2030
Vietnam’s state-run chemical group Vinachem and Brazil’s major trading firm Oceanside One Trading LLC say they will strive to boost their bilateral trade to $500 million in 2030.
Companies - Mon, November 18, 2024 | 12:32 pm GMT+7
Vietnam may welcome more FDI from US allies in Trump 2.0: broker
More companies from U.S. allies and elsewhere may move more production facilities to Vietnam in the second term of Donald Trump as U.S. President, given the expected intensification of U.S-China trade tension, according to KB Securities Vietnam (KBSV).
Economy - Mon, November 18, 2024 | 12:19 pm GMT+7
Vietnam PM asks Brazil's aerospace giant Embraer to help with air logistics development
Vietnam seeks to build an air logistics center and plans to collaborate with Brazil’s aerospace giant Embraer for the task, says Prime Minister Pham Minh Chinh.
Companies - Mon, November 18, 2024 | 10:45 am GMT+7
Singapore-domiciled TAEL Two Partners struggles to divest from Vietnam taxi operator Vinasun at loss
Singapore-headquartered fund TAEL Two Partners has planned to divest entirely from Vietnamese taxi operator Vinasun at a heavy loss after more than a decade of investment.
Finance - Mon, November 18, 2024 | 10:19 am GMT+7
Vietnam's opportunity in a shifting global EVs market
The global electric vehicle boom presents numerous opportunities for Vietnam's economy, supported by leading technology suppliers like Bühler Group.
Companies - Mon, November 18, 2024 | 10:00 am GMT+7
Vietnam, Brazil elevate bilateral ties to strategic partnership
Vietnam and Brazil issued a joint statement on elevating their bilateral relations to a Strategic Partnership in Rio de Janeiro on Sunday (local time) on the occasion of Prime Minister Pham Minh Chinh’s ongoing trip to the Latin American nation to attend the G20 Summit and join bilateral activities.
Politics - Mon, November 18, 2024 | 8:11 am GMT+7
The Investor to host seminar on removing legal bottlenecks for infrastructure, property investment
A seminar themed “Removing legal bottlenecks for infrastructure and property investment” will be organized by The Investor in Hanoi on Tuesday.
Economy - Mon, November 18, 2024 | 7:52 am GMT+7
State-owned housing developer HUD has new chairman
Dau Minh Thanh, chief of the Ministry of Construction (MoC) Office, has been appointed chairman of the ministry’s Housing and Urban Development Corporation (HUD).
Companies - Sun, November 17, 2024 | 9:34 pm GMT+7