FDI inflows drop significantly on-year

According to the Ministry of Planning and Investment's Foreign Investment Agency (FIA), the total FDI in the first two months of 2023 stood at $3.1 billion, equivalent to only 62 per cent of the same period in 2022.

As many as 261 new projects were granted investment registration certificates with the total registered capital of over $1.76 billion, equivalent to over 280 per cent on-year. The adjusted capital of 133 ongoing projects reached about $535.4 million, down 85.1 per cent on-year. There were 440 capital contributions and share purchases as of February 20, equivalent to $798 million and showing an increase of 3.7 per cent on-year.

The country's disbursed capital was $2.55 billion in the first two months, equivalent to a slight decrease of 4.9 per cent.

The FIA census also indicated that FDI was seen in 17 out of the 21 economic sectors in the first two months. Of those, processing and manufacturing took the lead with $2.17 billion, capturing 70.1 per cent of total FDI inflows. Real estate ranked second with $396.9 million, making up 12.8 per cent of the total, followed by wholesale, retail, and logistics and warehouses with $202.1 million and $142 million respectively.

Singapore was the top foreign investor in Vietnam with $978.4 million, accounting for 31.5 per cent of the total foreign investment into the country. Taiwan came second with $407.1 million and the Netherlands third with $369 million.

Bac Giang attracted the largest amount with $824.3 million, followed by Ho Chi Minh City with $369.1 million, Binh Duong with just over $342 million, Quang Ninh with $332 million, and Dong Nai with $215.7 million.

The export turnover of foreign-invested enterprises reported a decrease of about 5.3 per cent on-year to roughly $38.4 billion (including crude oil) or $38.1 billion (excluding crude oil), making up more than 76 per cent of the total export value of the country. Import turnover was estimated at $33 billion, a decrease of 10.9 per cent on-year, while the trade surplus stood at $5.4 billion (including crude oil) or $5 billion (excluding crude oil).

Accumulated to date, the roughly 36,600 valid foreign-invested projects across the country currently boast the total registered capital of more than $442.3 billion.

Despite a three-fold increase in newly registered capital, a sharp decrease in other areas has seen foreign direct investment drop in the first month of 2023.

Although the available industrial land in Ho Chi Minh City has shrunk significantly in recent years, foreign direct investment to the city remains top across the country.