Foreign investors pour nearly US$11 billion into Vietnam

Ngoc Mai 15:38, 2022/04/28

Singapore remained the largest investor in Vietnam during the four months with US$3.1 billion, or 28.8% of the total.

FDI commitments in Vietnam as of April 20 were estimated at over US$10.8 billion, a decline of nearly 12% against the same period of last year, a report of the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment has shown.

Electronics production at Quang Minh Industrial Park, Me Linh Province, Hanoi. Photo: Chien Cong

Upon breaking down, a total of 454 new projects have been approved with combined registered capital of $3.7 billion, up 0.7% in the number of projects but down 56.3% in capital year-on-year, while 323 existing projects have been injected an additional $5.29 billion, up 93.5% in the capital.

Disbursement of foreign direct investment (FDI) projects in Vietnam totaled US$5.92 billion in the January-April period, up 7.6% year-on-year.

Investors have poured money into 18 out of 21 fields and sectors, in which manufacturing and processing led the pack with investment capital of nearly $6.2 billion, accounting for 57.2% of total registered capital. Real estate came second with $2.8 billion, or 26.1%, followed by wholesale and retail ($668 million).

Wholesale and retail, manufacturing, and science and technologies are fields that attracted the largest number of fresh projects, making up 28.6%, 25.8%, and 18.1%, in that order.

The report added that out of 72 countries and territories investing in Vietnam in the first four months of 2022, Singapore took the lead with $3.1 billion, or 28.8% of the total, South Korea came in second with $1.8 billion, and Denmark in third with the Lego manufacturing project in Binh Duong Province pouring $1.3 billion.

South Korean investors also topped the list with the highest number of new projects and those being injected with additional capital, making up 18.7% and 33.7%, respectively.

Among 44 cities/provinces receiving investment capital from abroad during the three months, Binh Duong claimed the top spot with nearly $2.35 billion, or 21.7% of the total, followed by Bac Ninh with $1.57 billion, and Ho Chi Minh City with $1.28 billion.

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 40%, and Hanoi of the first spot in the number of projects getting additional funds (16.1%).