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.