Additional capital invested by foreign-invested projects in Vietnam surged 59.3% year-on-year to $7.24 billion in the first seven months of the year, as more companies recovered and expanded their operations.
Strong capital expansion was seen in many high-tech and electronics manufacturing projects including those of South Korean giant Samsung, the Foreign Investment Agency (FIA) reported.
Disbursed capital was another bright spot in the country’s FDI landscape, with FDI disbursement hitting $11.57 billion in the year to July 20, up 10.2% year-on-year.
“The figures show that foreign-invested enterprises have been recovering and expanding. They reflect investor confidence in Vietnam’s economy and business climate,” said FIA director Do Nhat Hoang.
The statistics also reflect the impact of inflation and rising prices due to geopolitical and trade conflicts in the world, he added.
Capital contribution for stake acquisitions rose 25.7% to $2.58 billion in the first seven months. The number of deals went down 13.8% to 2,072.
Newly-registered capital, however, continued to decline. The FIA said this was to be expected with the lingering effects of pandemic prevention measures deployed last year.
The capital for 927 newly-registered projects in the first seven months was $5.27 billion, down 7.9% and 43.5% year-on-year, respectively.
Total registered capital, which includes newly registered capital, additional capital of operational projects, and capital contributions for stake acquisitions, reached $15.41 billion, down 7.1%.
Manufacturing and processing received the biggest volume of registered FDI with $10 billion, accounting for 64.3% of the country's total, followed by the real estate sector with $3.21 billion and 20.7%, respectively.
Of the 88 countries and territories investing in Vietnam this year, Singapore led the pack with $4.3 billion or 27.7%, down 27.3% year-on-year.
South Korea ranked second with $3.26 billion or 21%, up 48.2%. Denmark placed third thanks to Lego’s $1.3 billion toy making project in the southern province of Binh Duong. Mainland China, Japan and Hong Kong followed the top three.
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 Samsung Electronics’s second-largest manufacturing site worldwide for TV screens and home electronics, the largest one 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. The $2.27 billion facility manufactures and assembles mainboards, flexible printed circuit boards, components and spare parts like camera modules, power adapters, touch sensor modules, and linear motors.
To date, the South Korean giant has channeled more than $20 billion into Vietnam, 28 times higher than its initial commitment.