Disbursed foreign direct investment capital in Vietnam hit $17.45 billion in the year to October 20, a 15.2% increase year-on-year.
Additional capital invested by FDI projects rose 23.3% to $8.74 billion in the 10-month period. 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 up 4.5% to more than $3.79 billion, while the number of deals went down 2.2% to 2,997.
Newly-registered capital, however, continued to decline. The capital for 1,570 newly-registered projects in the first 10 months was $9.93 billion, down 23.7% year-on-year.
Total registered capital, which includes newly registered capital, additional capital of operational projects, and capital contributions for stake acquisitions, reached $22.46 billion, down 5.4%.
Manufacturing and processing received the biggest volume of registered FDI with $12.9 billion, accounting for 57.5% of the country's total, followed by the real estate sector with $3.87 billion and 17.2%, respectively.
Of the 103 countries and territories investing in Vietnam this year, Singapore led the pack with $5.34 billion or 23.8% of the total, down 21.1% year-on-year.
Japan ranked second with nearly $4.19 billion or 18.7%, up 23.8%. South Korea was at the third position with $3.9 billion or 17.4%.
Ho Chi Minh City is the largest recipient in terms of registered FDI in the 10-month period with over $3.42 billion, accounting for 15.2% of the country's total, up 25.3% year-on-year.
Binh Duong province ranked second with $2.85 billion, accounting for 12.7%, up 40%. The figures for Quang Ninh, which ranked third, were $2.19 billion, 9.7% and 89%.
Since 1986 when Vietnam introduced its open-door policy, the country has licensed 35,895 FDI projects that are still valid, with total investment capital of $435.2 billion.
FDI disbursement to date is $269 billion, equivalent to 61.9% 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 a very 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.