Registered FDI capital in Vietnam up 4.5% to $16 bln in first 7 months

Registered foreign direct investment capital in Vietnam rose 4.5% year-on-year to nearly $16.24 billion in the first seven months of 2023, the first hike so far this year.

In July alone, registered FDI hit over $2.8 billion, up 8.9% from June, 41.9% from May, and 85.7% year-on-year, according to the Foreign Investment Agency (FIA).

Out of the $16.24 billion, $7.84 billion was newly-registered capital, a 38.6% increase year-on-year; $4.16 billion was additional capital for ongoing projects, down 42.5%; and $4.14 billion was capital contributions for stake acquisitions, up 60.7%.

The figures show both newly-registered capital and capital contributions for stake acquisitions increased strongly.

Additional capital for ongoing projects declined sharply, but the number of projects rose 27.1% year-on-year to 736.

"Newly-registered capital was on the rise, with the number of projects surging 75.5% to 1,627. This shows foreign investors continued to have confidence in Vietnam's business environment, reflected by new investment decisions," said Do Nhat Hoang, director of the FIA.

Disbursed FDI capital inched up 0.8% to $11.58 billion in the January-July period.

There are signs that registered FDI in Vietnam is getting improved.

Hyosung Vietnam, invested by South Korea’s chaebol Hyosung, plans to invest $1 billion to build a carbon fiber factory in Phu My 2 Industrial Park, the southern province of Ba Ria-Vung Tau. Representatives of the firm delivered the proposal to Ba Ria-Vung Tau Chairman Nguyen Van Tho at a meeting in the coastal province on July 21.

Thailand-based Runergy PV Technology Co., Ltd. plans to invest $293 million in a factory producing monocrystalline silicon rods and semiconductor platters at the Dong Nam Economic Zone in the central province of Nghe An. Runergy PV Technology Ltd is a subsidiary of China-headquartered Jiangsu Runergy New Energy Technology Co., Ltd.

Factory construction is scheduled to take place between June and October for trial production to begin in November 2023. Full operations are set to begin in June 2025.

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. The newest factory in the central province of Quang Nam has an annual capacity of 850 million liters of beverages and investment of $56 million, and was inaugurated in June 2017.