Vietnam reports $18 billion in FDI between January and July

In the first seven months of 2024, 1,816 new projects were granted investment registration certificates, with the total registered capital of over $10.76 billion, up 11.6 per cent in the number of projects and up 35.6 per cent on-year in terms of capital.

The adjusted capital for 734 ongoing projects reached nearly $4.97 billion, down 0.3 per cent on-year in number, but up 19.4 per cent in capital. There were 1,795 capital contributions and share purchases valued at $2.27 billion, falling 3.1 per cent and 45.2 per cent, respectively.

Foreign groups invested in 18 out of the 21 economic sectors in the first seven months of the year. Among them, the manufacturing and processing industry took the lead with $12.65 billion, accounting for 70.3 per cent of the total, and a 15.7 per cent increase from a year ago.

Real estate followed with $2.87 billion, capturing 16 per cent of the total and up 78 per cent from a year earlier. This was followed by wholesale and retail, and professional, science and technologies, with $740.5 million and $490.6 million, respectively.

In terms of quantity, the manufacturing and processing industry led in the number of new projects with 35.1 per cent, as well as capital adjustment, with 65.8 per cent. Meanwhile, wholesale and retail led in the number of capital contributions and shares purchases, at 42.1 per cent.

Singapore was the largest foreign investor among the 91 countries and territories investing in Vietnam during the period, with nearly $6.52 billion, or 36.2 per cent of total FDI, up from 79.1 per cent in the same period last year. Hong Kong (China) ranked second with nearly $2.19 billion, accounting for 12.2 per cent and more than double the figure last year. It was followed by Japan, China, and South Korea.

Regarding quantity, China ranked first in the number of new projects with 29.7 per cent. South Korea took the lead in terms of capital adjustments as well as capital contributions and share purchases, accounting for 24.5 per cent and 26 per cent, respectively.

In the seven-month period, Bac Ninh was the largest FDI recipient with $3.2 billion, making up nearly 17.8 per cent of the total and triple the figure from last year. Quang Ninh was second with over $1.56 billion, making up 8.7 per cent of the total and 2.2 times higher than the same period last year. Ho Chi Minh City came closely behind with $1.55 billion, capturing 8.6 per cent of the total.

As of July 2024, disbursed FDI has risen by 8.9 per cent on-year to about $12.55 billion.

Foreign direct investment inflow into Vietnam for the entire year is expected to outperform last year, fuelled by encouraging results thus far in 2024.

Foreign-invested enterprises are shifting their focus to Vietnam's lucrative domestic market, driven by its large population and high GDP growth.

HSBC has raised its 2024 GDP growth forecast for Vietnam to 6.5 per cent (from 6.0 per cent) and maintained its 2025 GDP estimate at 6.5 per cent.