The disbursement of foreign direct investment (FDI) in Vietnam during the first seven months of 2022 reached nearly US$12 billion, up 10.2% year-on-year, a report of the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment has shown.

Production of electronic components at YPE Vina Company at Binh Xuyen 2 Industrial Park, Vinh Phuc Province. Photo: Hoang Hung

The FDI commitments to the country declined by 7% year-on-year to $15.41 billion during the period.

In the seven months, 927 new projects have been approved with total registered capital of $5.72 billion, down 8% in the number of projects and 43.5% in capital year-on-year, while 579 existing projects have been injected an additional $7.24 billion, up 3.2% in number and 59.3% in the capital. 

Meanwhile, 2,072 projects had nearly $2.58 billion contributed by foreign investors, which was down 13.8% across several projects, but up 25.7% in value year-on-year.

Investors have poured money into 18 out of 21 economic fields and sectors, in which manufacturing and processing led the pack with investment capital of over $10 billion, accounting for 64.3% of total registered capital. Real estate came second with $3.21 billion, or 20.7%, followed by science and technology with $526.2 million.

According to the FIA, the wholesale, retail, and manufacturing sector made up the largest number of new projects at 30.5% and 26.6%, respectively.

Among 51 cities and provinces having received FDI in the period, the southern province of Binh Duong has attracted the largest portion of commitments with $2.6 billion, or 16.7% of the total. Ho Chi Minh City ranked second with over $2.43 billion (15.6%), followed by Bac Ninh with $1.68 billion (10.8%).

The FIA, however, noted the majority of new projects are concentrated in major cities with advantages in infrastructure systems, such as Ho Chi Minh City, or 40.2% of the new projects, while Hanoi topping the list in terms of projects with additional funds, or 17.8%.

The report added that out of 88 countries and territories having projects in Vietnam in the first half of 2022, Singapore took the lead with $4.3 billion, or 27.7% of the total newly registered FDI projects, followed by South Korea with $3.26 billion, or 21%, and Denmark with US$1.32 billion, or 8.55%.

South Korea claimed the top spot in terms of new projects and projects with capital increases, with  22.7% and 37% respectively.