Disbursement of foreign direct investment (FDI) projects in Vietnam totaled US$4.42 billion in the first three months of this year, the highest figure for a first quarter in the past five years and representing an increase of 7.8% year-on-year, a report of the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment has shown.

Electronics production at Rhythm Precision Vietnam in Noi Bai Industrial Park. Photo: Pham Hung

Meanwhile, FDI commitments in the January – March period fell nearly 12.1% year-on-year to $8.91 billion. 

Year to March 20, a total of 322 new projects have been approved with combined registered capital of $3.21 billion, up 37.6% in the number of projects but down 55.5% in capital year-on-year, while 228 existing projects have been injected an additional $4.06 billion, up 93.3% in the capital. 

Investors have poured money into 18 out of 21 fields and sectors, in which manufacturing and processing led the pack with investment capital of over $5 billion, accounting for 59.5% of total registered capital. Real estate came second with $2.7 billion, or 30.3%, followed by science and technology with $200.4 million, and electricity production and supply with $194.6 million.

The report added that out of 65 countries and territories investing in Vietnam in the first three months of 2022, Singapore took the lead with $2.29 billion, or 25.7% of the total, South Korea came in second with $1.61 billion, and Denmark in third with the Lego manufacturing project in Binh Duong Province with investment capital of $1.3 billion.

South Korean investors topped the list with the highest number of new projects and those being injected additional capital, making up 18.1% and 34.6%, respectively.

Among 44 cities/provinces receiving investment capital from abroad during the three months, Binh Duong claimed the top spot with nearly $2.32 billion, or 26% of the total, followed by Bac Ninh with $1.42 billion, and Thai Nguyen with $934 million.

The manufacturing project from Denmark-based LEGO was the largest during the period with an investment capital of $1.32 billion in Binh Duong province.

However, investors are still favoring major cities with adequate infrastructure systems, such as Hanoi and Ho Chi Minh City, noted the FIA, referring to Ho Chi Minh City taking the lead in terms of fresh projects with 39.4% of the total, and Hanoi (13.2%).

Besides the $1.32-billion LEGO plant project, some other big-ticket ones in January-March include an additional capital of $941 million into the construction of urban and services infrastructure at the Vietnam-Singapore Industrial Park (VSIP) in Bac Ninh; the pumping of $920 million into the Samsung Electromechanics Vietnam in Thai Nguyen by Samsung Vietnam; and over $306 million into the plant to produce electronic and network products from Hong Kong investors in Bac Ninh.