Registered FDI capital in Vietnam up 8% to $18 bln in 8 months

Registered foreign direct investment capital in Vietnam rose 8.2% year-on-year to nearly $18.15 billion in the year to August 20.

Registered foreign direct investment capital in Vietnam rose 8.2% year-on-year to nearly $18.15 billion in the year to August 20.

Out of the $18.15 billion, $8.87 billion was registered capital for 1,924 new projects, up 39.7% and 69.5% year-on-year, respectively.

Over $4.53 billion was additional capital for 830 ongoing projects, down 39.7% and up 22.8%, respectively.

$4.47 billion was capital contributions for 2,268 stake acquisition deals, up 62.8% and down 6.5%, respectively.

Newly-registered capital continued to be on the rise, up 39.7% year-on-year, following a 38.6% rise in the first seven months, the Foreign Investment Agency (FIA) said in a release.

Additional capital for ongoing projects declined but improved month after month. The eight-month decline was 39.7%, while the seven-month, six-month and five-month figures were 42.5%, 57.1% and 59.4%, respectively. Meanwhile, capital contributions for stake acquisitions increased sharply.

"The 22.8% hike in ongoing projects having capital expansion shows foreign investors continued to have confidence in Vietnam's business environment," the FIA added.

Disbursed FDI capital inched up 1.3% to $13.1 billion in the year to August 20.

On July 25, Suntory Pepsico Vietnam received an investment certificate for a $188 million manufacturing plant in Long An province. The beverage giant now operates factories in HCMC, Can Tho city, Quang Nam, Bac Ninh, and Dong Nai provinces. Photo courtesy of the company.

In the eight-month period, manufacturing and processing received the largest amount of registered FDI with $13 billion, accounting for 67.8% of Vietnam's total and up 14.7% year-on-year.

The real estate sector ranked second with $1.76 billion, or more than 9.7% of the total, down 47.2%, followed by the banking-finance sector with nearly $1.54 billion, 63.7 times higher year-on-year. 

Of the 100 countries and territories investing in Vietnam in the eight-month period, Singapore led the pack with $3.83 billion, or over 21.2% of the total, down 15.4% year-on-year.

Mainland China ranked second with nearly $2.69 billion, accounting for 14.8% of the total, up 90.8%, followed by Japan with $2.58 billion (accounting for 14.1% of the total, up 73.1%), South Korea, Hong Kong, and Taiwan.

In terms of new projects, mainland China topped the list, accounting for 20.7% of the total. South Korea led the pack in terms of projects having additional capital (27.6%) and number of capital contributions for stake acquisitions (28.7%).

A survey conducted by EuroCham for the second quarter of this year found that 48% of European businesses expect to increase their investments in Vietnam by the end of the third quarter.

Out of the 48% of businesses that expect to increase their investments, 3% are looking to invest significantly, 13% moderately, 16% slightly, and 16% marginally. Meanwhile, 40% responded with “not at all”, up by four percentage points versus Q1/2023.