AsemconnectVietnam - According to the figures of the Foreign Investment Agency, the foreign investors registered to put in more than 18 billion USD in Vietnam as of July 20, a rise of 10.9% over the same period last year. Of the figure, more than 12.55 billion USD has been disbursed, up by 8.4%.

The average capital per project in the period was 5.9 million USD, higher than the average in the seven-month period of 2023.
In the first 7 months of this year, the total new FDI flow reached 10.76 billion USD, up by 35.6%, and additional capital totaled 4.97 billion USD, up by 19.4%, while foreign investment through contributing capital and buying stakes dropped by 45.2% to 2.27 billion USD.
Foreign investment has been poured in 18 out of 21 economic sectors.
The processing and manufacturing industry was leading in attracting FDI in the period, with a total investment of more than 12.65 billion USD, or 70.3% of the total registered FDI, up by 15.7% against the same period last year.
The real estate business followed with a total investment of 2.87 billion USD, up 78%, followed by wholesale and retail businesses with 740.5 million USD.
Among 91 countries and territories with investment in Vietnam, Singapore is the largest investor, registering to pump nearly 6.52 billion USD in Vietnam, up 79.1%.
Hong Kong was the second largest investor with a total investment of 2.19 billion USD, more than doubling the same period last year.
Kyrgyzstan was a new investor in July with a project worth 5 million USD, making it the thirty fourth largest out of 91 countries investing in Vietnam from the beginning of this year.
Up to date, 147 countries and territories have invested in Vietnam.
Foreign investors invested in 48 out of 63 provinces and cities in the period. Bac Ninh province was the top destination, with a total investment of nearly 3.2 billion USD, more than three times higher than the same period last year. It was followed by Quang Ninh with 1.56 billion USD, 2.2 times higher and Ho Chi Min City with 1.55 billion USD.
Hanoi’s FDI attraction in July and the first 7 months of 2024
Hanoi city has attracted 124.9 million USD in foreign direct investment (FDI) in July, bringing the total in the first seven months to 1.3 billion USD, 65% higher than the same period last year.
According to the municipal Statistics Office, over 1.1 billion USD was poured into 143 new projects in the first 7 months of this year, 138 million USD added to 102 existing projects, and 77 million USD spent on contributing capital to or purchasing shares of local companies.
In the first seven months, Hanoi had 18,000 newly established enterprises with a combined registered capital of 162.1 trillion VND (6.41 billion USD), a decrease of 2% in the number of companies and 9% in capital year-on-year.
Meanwhile, as many as 6,600 businesses resumed their operation, up by 14% compared to the same period last year, and 18,200 others registered to temporarily suspend operations, 23% higher than that of the same period last year.
A total of 2,500 businesses dissolved, up by 18% over the same period last year.
The confidence of foreign investors in Vietnam remains strong
Vietnam has seen a robust increase in the inflow of the foreign investment despite global geopolitical uncertainty, affirming foreign firms’ sentiments in the Southeast Asian market, according to insiders.
The Ministry of Industry and Trade stated in an announcement that the investors’ confidence in the Vietnamese Government’s policy as well as the nation’s economic outlook has been consolidated. Meanwhile, global corporations stressed that Vietnam has an incredible opportunity to become an indispensable link in the global supply chain.
The tech giants from the Republic of Korea described Vietnam as their global key production base, while meeting with Prime Minister Pham Minh Chinh.
Besides, many billion-USD projects have been effectively implemented in Vietnam, including those of Samsung, LG, Foxconn, Goertek, Amkor, and HanaMicron.
In the first half of 2024, nearly 15.2 billion USD in foreign investment was funneled into Vietnam, up 13.1% year-on-year. The country is forecast to lure some 39-40 billion USD in foreign capital this year, equivalent to the figure of 2023.
Even during the tough time of COVID-19, the country was among the top 20 countries attracting the most foreign direct investment in the world as it garnered 20-22 billion USD at the time.
In recent years, various projects in the domains of semiconductor, energy, and production of parts, electronic products, and goods with high added value have landed and expanded in the country. Furthermore, Vietnam has great chances to attract investments to pioneering industries like AI and hydrogen.
Experts attributed Vietnam’s increasing attractiveness to foreign investors to the country’s important role in the multinational producers’ strategies to diversify their supply chains, as well as its sound economic recovery and stable macroeconomy.
The Government is striving to better the investment and business climate to create favourable conditions and support the investors in the win-win spirit, and for the benefits of the nation, people, and foreign enterprises.
Amidst stiff competition in the foreign investment attraction, Vietnam should work to remove bottlenecks, from improving its human resources to preparing infrastructure, land and energy, and renewing and simplifying investment procedures.
They also underlined the necessity to promote technology transfer and make Vietnamese firms deeply involved in the global supply chain.
Vietnam’s FDI forecast for 2024
According to the Ministry of Planning and Investment (MPI), despite the stiff competition in attracting foreign direct investment (FDI) among countries, the potential of Vietnam’s FDI attraction remains positive and FDI may reach 39 to 40 billion USD this year, higher than the 2023 figure.
The above forecast is based on the fact that foreign investors’ confidence in Vietnamese Government’s policies and the country’s development in the future continue to be strengthened. In their eyes, Vietnam remains an important investment destination in the medium and long terms.
The MPI also reported that the quality of investment projects has improved considerably as seen in the new investments in and expansion of large projects in the fields of semiconductors, energy, electronics, and products with high added values.
Thanks to the above results, representatives from the MPI said foreign investors continue to view Vietnam as an important investment destination in the medium and long terms, amid the ongoing global supply chain restructuring.
The world economic outlook in 2024 is forecast to have a weak recovery and will face many risks and major challenges due to the post COVID-19 pandemic complicated developments. Furthermore, geopolitical instability and competition between major countries continue to cause changes and impacts on the global economy in the medium and long term. New standards and even interventions by some governments to guide investment activities can affect the shift of FDI.
However, many domestic and foreign financial institutions believe that Vietnam’s FDI attraction this year will maintain a positive pace due to three factors: Vietnam’s important and increasingly reinforced role in the supply chain diversification strategy of multinationals; its more positive economic growth recovery this year; and finally the country’s steady macroeconomic growth.
In particular, Vietnam also holds potential for investing in many pioneering industries, and the renewable energy sector is grabbing investors’ interest, with a focus on clean energy sources, such as solar and wind power to enhance the electricity supply sustainability.
However, to take full advantage of investment attraction opportunities, the MPI supposed that Vietnam must actively solve existing bottlenecks relating to the quality of skilled human resources, local power shortages in some localities where electronic industrial projects are implemented; and simplification of procedures on granting investment registration certificates, such as construction, fire prevention and fighting permits, and more.
Vietnam remains important investment destination in medium and long terms: MPI
In foreign investors' eyes, Vietnam remains an important investment destination in the medium and long terms amidst the ongoing global supply chain restructuring, according to the Ministry of Planning and Investment (MPI).
The global economy is forecast to recover weakly and face numerous significant risks and challenges in 2024 due to complex developments in the post COVID-19 pandemic. Geo-political instability and the continued competition among major countries is anticipated to leave impacts on the global economy in the medium and long terms.
New standards and even interventions by some governments to guide investment activities can affect the shift of foreign direct investment (FDI). Thus, the FDI flows are forecast to increase slowly and concentrate more among the countries with geo-political linkages, especially in strategic fields, the ministry said.
However, many domestic and foreign financial institutions believe that Vietnam's FDI attraction this year will maintain a positive pace due to three factors.
First, Vietnam now has an important and increasingly reinforced role in the supply chain diversification strategy of multinationals. Second, its economic growth has recovered more positively this year. And finally, domestic and foreign financial institutions affirmed that the country has advantages in keeping steady macroeconomic growth.
Besides, Vietnam also holds potential for investing in many pioneering industries, the MPI noted, adding that the renewable energy sector is grabbing investors' interest, with a focus on clean energy sources such as solar and wind power to enhance the electricity supply sustainability.
Investors' trust in the country has also continued to be reinforced. They believe in the Government's policies and the development future of the economy, the MPI went on.
The ministry perceived that Vietnam must overcome some bottlenecks by, for instance, quickly preparing skilled human resources, especially for the semiconductor industry.
The quality of investment projects has improved considerably as seen in the new investments in and expansion of large projects in the fields of semiconductor, energy, electronics, and products with high added value.
Investment capital was mostly channeled into the localities with such advantages as good infrastructure, stable human resources, improvements in administrative reforms, and dynamic investment promotion. They include Bac Ninh, Ba Ria - Vung Tau, Quang Ninh, Hanoi, Hai Phong, Ho Chi Minh City, and Dong Nai. The majority of investment came from traditional Asian partners like Singapore, Japan, Hong Kong (China), the Republic of Korea, and China.
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Source: VITIC/vietnamplus.vn