Binh Duong Industrial Park, North of Ho Chi Minh City As of August 20 this year, Vietnam received nearly US$16.8 billion in foreign direct investment, down 12.3 percent year-on-year, according to data from the Foreign Investment Agency under Vietnam’s Ministry of Planning and Investment. During this period, the value of new registered capital declined significantly, down 43.9% to US$6.35 billion. Meanwhile, additional capital injected into existing projects rose 50.7% to $7.5 billion, while capital contributions and share purchases rose 3.6% to $2.9 billion…
As of August 20 this year, Vietnam received nearly US$16.8 billion in foreign direct investment, down 12.3 percent year-on-year, according to data from the Foreign Investment Agency under Vietnam’s Ministry of Planning and Investment.
During this period, the value of new registered capital declined significantly, down 43.9% to US$6.35 billion. Meanwhile, additional capital injected into existing projects rose 50.7% to $7.5 billion, while capital contributions and stock purchases rose 3.6% to $2.9 billion.
While Vietnam is still seen as an attractive investment destination, current world developments such as Russia-Ukraine tensions, supply chain disruptions and escalating inflation have significantly affected inflows into the country, experts say and foreign direct investment from other Southeast Asian countries.
Processing and manufacturing attract the most foreign investment
Processing and manufacturing continued to attract the largest amount of investment, reaching US$10.7 billion, accounting for 63.9% of the total. It was followed by the real estate business, valued at over $3.3 billion, or 19.9% of the total.
During this period, Singapore topped the list of 94 countries and territories that injected capital into Vietnam with US$4.53 billion, accounting for 27% of the total. It was followed by South Korea and Japan at nearly $3.5 billion and $1.49 billion, respectively.
Ho Chi Minh City tops the list
Regionally, Ho Chi Minh City attracted the most funding with over US$ 2.7 billion, accounting for 16.1% of the total, followed by Binh Duong province, north of Ho Chi Minh City, with nearly US$ 2.64 billion, and Bac Ninh province, east of Hanoi, with nearly US$ 1.75 billion .
As of August 20, 2021, the country had more than 35,500 FDI-related projects with a combined value of over $430 billion. From the beginning of the year to August 20, the export value of foreign investment including crude oil was 184.66 billion US dollars, a year-on-year increase of 17%, accounting for 73.9% of the total export value
