Vietnam’s FDI capital likely to hit US$40 billion this year

Speaking at a recent press briefing in Hanoi, Phuong revealed that Vietnam attracted nearly US$15.2 billion in FDI in the first six months of this year, representing a year-on-year increase of 13.1%. Of the total, newly registered FDI was more than US$9.5 billion, an increase of 46.9% from a year ago.

“This is a noteworthy number, because the sharp increase in the newly registered capital shows the country is an attractive destination for global investors,” said Phuong.

Foreign firms injected their capital into 48 cities and provinces across the country, with Bac Ninh leading the way. The northern province, near capital Hanoi, attracted nearly US$2.6 billion in FDI, followed by Ba Ria – Vung Tau and Quang Ninh provinces, with their corresponding FDI of some US$1.54 billion and US$1.36 billion.

Investment capital mostly flowed to localities with many advantages such as good infrastructure, stable human resources, improvements in administrative reforms and dynamic investment and trade promotion.

With regard to investment areas, foreign firms invested in 18 out of 21 national economic industries. Processing and manufacturing took the lead, attracting nearly US$10.69 billion, followed by real estate more than US$2.47 billion, wholesale and retail nearly US$614 million.

Among 84 countries and territories investing in Vietnam in the first six months of the year, Singapore was the largest investor, pouring nearly US$5.58 billion into the country, up 86% compared to the same period last year.

Japan ranked second with more than US$1.73 billion, followed by Hong Kong (China), the Republic of Korea and China. Notably, China was the leading partner in the number of new investment projects, accounting for 29.1% of the total number of FDI projects in Vietnam in the first half of the year.

Deputy Minister Tran Quoc Phuong said that domestic and foreign financial institutions have positively evaluated Vietnam’s prospects of attracting FDI thanks to the country’s adaptive diversification strategy for investors. The government has promoted this trend after the COVID-19 pandemic was brought under control, and this is also an opportunity for Vietnam to receive investment capital from the world.

“The Vietnamese economy is gathering full steam from the COVID-19 fallout, and they will expect a lot from the ongoing great economic recovery, which is a good factor in investment attraction,” stressed Phuong.

In his opinion, an important thing is that Vietnam has maintained its macroeconomic stability – a factor that makes investors feel secure when they make their investment decision.

The official cited a recent survey by the Ministry of Planning and Investment as saying foreign investors feel confidence in the Vietnamese economy, showing their desire to continue investing in the country.

“We do expect that FDI capital in 2024 will reach about US$39-40 billion this year, equivalent or higher than the same period in 2023,” concluded Phuong.