AsemconnectVietnam - According to the Foreign Investment Agency under the Ministry of Planning and Investment, Vietnam attracted approximately 16.24 billion USD in foreign direct investment (FDI) from the beginning of this year to July 20, up by 4.5% year-on-year.

In the first 7 months of this year, there were 1,293 newly-registered projects with a combined capital of 7.94 billion USD, up by 75.5% in the number of projects and 38.6% in capital compared to the same period last year.
The country’s 736 existing projects have been additionally poured 2.93 billion USD, down by 42.5% year-on-year, up by 27.1% year-on-year.
The value of capital contribution and share purchase deals rose by 60.7% to 4.16 billion USD.
The manufacturing and processing sector led in FDI attraction, with 10.93 billion USD. It was followed by real estate with 1.61 billion USD.
In the first 7 months of this year, there were 94 countries and territories pouring capital into Vietnam, in which Singapore topped the list with 3.64 billion USD, down by 15.5% year-on-year. It was followed by the Republic of Korea (2.34 billion USD) and China (2.33 billion USD).
Those investors poured their capital into 52 provinces and cities in the period, with Hanoi receiving the lion's share - 2.28 billion USD, up 2.76 times year-on-year. Hai Phong came second with over 2 billion USD, up 96.5%, followed by Ho Chi Minh City.
As of July 20, FDI disbursement was estimated at 11.58 billion USD, up 0.8% year-on-year.
Hanoi’s FDI in the first 7 months of 2023
The capital city of Hanoi attracted 2.28 billion USD of foreign direct investment (FDI) in the first seven months of this year, with 233 new projects worth 97.5 million USD and 108 projects permitted to increase investment capital by 193.5 million USD.
According to the municipal People’s Committee, during the period, 190 foreign investors contributed capital and bought shares worth nearly 2 billion USD. Japanese investor Sumitomo bought shares of VPBank with a transaction value of 1.5 billion USD.
In the period, the city had 18,300 new enterprises, up by 5% compared to the same period of 2022. Their registered capital reached 177.5 trillion VND (7.5 billion USD), a slump of 12% year on year.
In the seven months, the city created jobs for nearly 133,000 labourers, reaching 81.9% of the locality’s yearly target and 96.7% compared to the same period last year.
Besides, Hanoi authorities have decided to spend nearly 1.4 trillion VND on unemployment insurance for more than 48,000 people and 2.7 billion VND for 585 people to access vocational training.
In July alone, the city had 37 new FDI projects with a total registered capital of 22.3 million USD; 18 others permitted to increase investment capital by 24.5 million USD, while 19 foreign investors contributed capital and bought shares with 10.4 million USD.
In the month, the city had 2,387 new enterprises, down 10% compared to the same period in 2022. Their registered capital reached 23.1 trillion VND, a climb of 11% year on year.
Meanwhile, 293 enterprises were dissolved, up 2% year on year; 1,729 registered to suspend operations, an expansion of 59%; and 760 resumed operations, up 8% over the same period.
In July, the city created jobs for nearly 19,300 labourers, up 4.8% compared to the same period last year.
Vietnam’s foreign investment attraction saw positive outlook
Vietnam’s foreign investment attraction will see a positive outlook in the coming time as efforts have been made to improve investors’ trust in the country, said director of the Ministry of Planning and Investment’s Foreign Investment Agency (FIA) Do Nhat Hoang.
Besides political and social macroeconomic stability, Vietnam is making great efforts to improve its investment environment and continue to perfect three strategic breakthroughs of institutions, infrastructure, and human resources, he said.
Vietnam has also held policy dialogues, supported investors to overcome difficulties, and prepared conditions to welcome investors including land, energy, high-quality human resources, and supporting industries.
Hoang said that the most necessary thing for foreign direct investment (FDI) enterprises is human resources, adding Vietnam is developing training programmes to improve technical skills and labour productivity of human resources. In particular, the country is paying more attention to training based on the actual needs of enterprises.
“Many prestigious international organisations highly appreciate the results and prospects of Vietnam’s economic development,” Hoang said.
According to a survey conducted by the Japan Trade Promotion Organisation (JETRO) in 2022 with Japanese enterprises in Vietnam, 60% of the surveyed enterprises said they will expand their business in Vietnam in the next one or two years, the highest in ASEAN.
They also said Vietnam has the advantage of high growth potential, and businesses can increase revenue by expanding markets and increasing exports.
Meanwhile, according to a survey in January 2023 on the business environment of the European Chamber of Commerce in Vietnam (EuroCham), Vietnam is among the top five investment destinations globally.
Recently, in the World Happiness Report, Vietnam rose 12 places, ranking 65 out of the 137 countries.
“These are obvious evidence for the support and trust of the business community in Vietnam in recent years,” Hoang said.
Notably, after reducing for months, Vietnam’s FDI attraction increased in July thanks to the Government’s timely flexible solutions to support businesses.
In the past seven months, some economic indicators got positive such as total newly registered capital, adjusted and contributed capital from foreign investors reached nearly 16.24 billion USD, up 4.5% over the same period in 2022. There were 1,627 new projects, up 75.5% over the same period, with the total registered capital reaching nearly 7.94 billion USD, up 38.6% over the same period.
Hoang said that Vietnam is aiming to attract investment selectively, and improve investment promotion in selected fields relating to the digital economy, green economy, innovation, and renewable energy.
He added that his office will coordinate with international organisations to select potential corporations with competent financial capacity, and modern management.
CK
Source: VITIC/Vietnamplus.vn