AsemconnectVietnam - Vietnam has attracted more than 4.29 billion USD in foreign direct investment (FDI) in the first two months of 2024, a year-on-year increase of 38.6%, according to the Ministry of Industry and Trade (MoIT)’s Foreign Trade Agency.

In the first two months of this year, 405 new projects with total registered capital of 3.6 billion USD were granted investment certificates, up 55.2% in volume and doubling the value recorded in the same time last year.
Meanwhile, 159 projects had their capital adjusted, with a total amount of 442.1 million USD, up 19.5% and down 17.4% year-on-year, respectively.
Capital contributions and share purchases fell 68% year-on-year to 255.4 million USD.
As much as 2.8 billion USD in FDI was disbursed in the two months, expanding 9.8% from the same time of 2023.
According to the MoIT, most of the capital was funneled into cities and provinces with sound infrastructure, stable human resources, great efforts to improve administrative procedures and active engagement in investment promotion events.
Hanoi, Quang Ninh, Thai Nguyen, Ba Ria – Vung Tau, Bac Ninh, Dong Nai, Bac Giang, Ho Chi Minh City, Hai Phong and Hung Yen topped the country in terms of FDI attraction, the Foreign Trade Agency said, elaborating the ten localities made up a lion share of 81.7% of the foreign capital in the period.
The capital city of Hanoi led all localities in FDI attraction with nearly 914.4 million USD, up 24.4 times against the same period in 2023.
Leading investors in Vietnam in the first two months of 2024
Among 48 countries and territories with investment in Vietnam during the January-February period, Singapore was the biggest investor as it poured more than 2.08 billion USD into the country, followed by Hong Kong (China), Japan and China.
The investors injected capital into 16 out of 21 economic sectors, of which the processing and manufacturing industry took the lead with total investment of nearly 2.54 billion USD. It was followed by the realty sector (1.41 billion USD), whole and retail sale (125.2 million USD) and scientific and technological activities (nearly 76.4 million USD).
In the two-month period, the foreign-invested sector posted a trade surplus of more than 8.6 billion USD (excluding cruid oil), helping compensate the domestic sector’s trade deficit of 4.63 billion USD.
As of February 2024, the country had 39,553 valid projects with total registered capital of 473.1 billion USD. Nearly 300 billion USD has been disbursed so far.
Prospects for FDI attraction in 2024
With a series of cooperation document signing and investment licencing for foreign investors right from the beginning of the year, Vietnam expects impressive results in attracting foreign direct investment (FDI) this year.
According to the Foreign Investment Agency under the Ministry of Planning and Investment, in the first two months of this year, Vietnam drew more than 4.29 billion USD, up 38.6% year on year.
In the period, 405 new FDI projects were licenced, a rise of 55.2% over the same period last year, with a combined capital of nearly 3.6 billion USD, doubling the figure recorded in the same period last year.
A representative from the agency said that a surge in the number of projects with some large-scale ones is one of the major reasons behind the rise in FDI.
Minister of Planning and Investment Nguyen Chi Dung said that maintaining a stable investment environment and choosing potential investors is key to effectively attract foreign investment.
Nakajima Takeo, Chief Representative of Japan External Trade Organization (JETRO) in Vietnam, said that Vietnam is still one of the attractive and promising markets for Japanese firms.
He cited a JETRO survey showing that in the next 1-2 years, the rate of Japanese firms intending to expand business in Vietnam is 56.7%.
However, Minister Dung held that this year, Vietnam may face many challenges in FDI attraction, including those from the complicated and unpredicted world situation.
The application of the global minimum tax regulation is predicted to eliminate the role of traditional forms of incentives such as those in tax and land rent.
Prof. Dr. Nguyen Mai, Chairman of the Association of Foreign Invested Enterprises (VAFIE), held that Vietnam should design policies to draw FDI in prioritised areas such as high technology, innovation and energy.
Minister Dung said that in order to increase FDI attraction, Vietnam should continue adjusting policies to suit the global investment trend, speeding up administrative reform, and strengthening human resources training.
CK
Source: VITIC/vietnamplus.vn