As of October 20, 2023, the total newly registered capital, adjusted and contributed capital to buy shares and buy contributed capital of foreign investors reached more than 25.76 billion USD, rising 14.7% year-on-year. The capital generated by FDI projects was estimated at 18 billion USD, up 2.4% over the same period in 2022.
Accumulated to October 20, 2023, the whole country has 38,622 valid projects with a total registered capital of 460.07 billion USD. The accumulated realised capital of foreign investment projects reached nearly 292 billion USD, equalling 63.5% of the total valid registered investment capital.
Details are as follows:
I. FDI INFLOWS OF VIETNAM
1. FDI attraction in the first ten months of 2023
1.1. FDI performance:
Realised capital:
As of October 20, 2023, disbursement of FDI projects were estimated at about 18 billion USD, up 2.2% year-on-year and 0.2 percentage point as compared with the figure to the first nine months of this year.
Import and export performance:
Export: Export (including crude oil) was estimated at 213.94 billion USD, down 8.2% year-on-year, accounting for 73.5% of export turnover. Export (excluding crude oil) was 212.51 billion USD, decreased 8.1% from a year earlier, accounting for 73% of the country’s export turnover.
Import: Imports of the foreign-invested sector attained approximately 172.34 billion USD, down 12.9% over the previous period and accounting for 64.4% of the country’s import turnover.
Despite the decrease in export turnover in the first ten months of 2023, the FDI sector saw a trade surplus of 41.6 billion USD including crude oil and 40.17 billion USD excluding crude oil, while the domestic sector had a trade surplus of nearly 18.46 billion USD.
1.2. Investment registration
As of October 20, 2023, the total newly registered capital, adjusted capital and capital contributions and share purchases of foreign investors stood at 25.76 billion USD, up 14.7% year-on-year and down 7 percentage points as compared with the figure in the first nine months of this year. The newly registered capital and capital contributions and share purchases increased while adjusted capital continued falling.
Of which:
Newly registered capital: There were 2,608 projects worth 15,29 billion USD, were granted licenses, up 66.1% in number and 54% in value year-on-year.
Adjusted capital: There were 1,051 turns of project registering to adjust their investment (up 19.4% on-year) with a total additional capital of over 5.33 billion USD (down 39% year-on year).
Capital contribution and share purchases: There were 2,836 capital contribution and share purchases by foreign investors (down 5.4% year-on-year) with a value of over 5.13 billion USD (up 35.4% year-on-year).
(Detailed data in Appendix I attached)
By sector:
Foreign investors poured funds into 18 out of 21 sectors in the national economic classification system, of which the processing and manufacturing industry took the lead with approximately 18.84 billion USD, making up 73.1% of the total and increasing 45.8% year-on-year. Real estate came next with a total investment of about 2.14 billion USD, accounting for 8.3% of the total and falling 44.8% compared to the same period last year. Followed were banking and finance, and wholesale and retail, with nearly 1.54 billion USD (up 61.4 times more compared with the figure last year) and nearly 907 million USD (up 6.3% annually), respectively.
It is also worth noting that processing and manufacturing was the sector with the largest number of newly-registered projects (32.8%) and capital adjustment (54.4%). Wholesale and retail led in the number of capital contribution and share purchases (accounting for 41.6%).
By counterpart:
There were 108 countries and territories investing in Vietnam in the first ten months of 2023. Singapore remained Vietnam’s leading source of foreign investment with about 4.65 billion USD, making up 18% of the total FDI registered in the country (down 13% year-on-year). Republic of Korea came second with about 3.93 billion USD, making up 15.2% of the total, and up 0.5% year-on-year. Hong Kong (China) came third with a total registered investment capital of nearly 3.54 billion USD, accounting for 13.7% of the total and rising 2.6 times on-year. Next were China, Japan, Taiwan (China) and so on.
Regarding the number of projects, China led in terms of number of newly-registered projects (accounting for 21.7%); the RoK topped the list when it comes to turns of capital adjustment (25.7%) and capital contributions and share purchases (28.2%)
By location:
The foreign investors had invested in 55 provinces and cities nationwide in the first ten months of 2023. Quang Ninh led the way with two new licensed projects with a total registered capital of nearly 3.09 billion USD, making up nearly 12% of the total and increasing 41.3% from a year earlier. Hai Phong ranked second with over 2.8 billion USD, accounting 10.9% of the total and surging 2.14 times compared with the figure in the same period last year. Followed by Hanoi, Ho Chi Minh City, and Bac Giang province.
Ho Chi Minh City remains the best performer in attracting new projects (38%), turns of adjusted projects (25.3%) and capital contributions and share purchases (66.6%).
(Detailed data in Appendix II attached)
2. Evaluation of the FDI performance in the first ten months of 2023
- The realised capital of FDI projects increased 2.4% year-on-year and 0.2 percentage points compared with the figures of the first nine month this year. The Government and the Prime Minister has drastically implemented solutions to support and remove obstacles for businesses to disburse their investment capital.
- The total registered capital reached the highest growth for the first time since the beginning of this year, up 14.7% over the same period and up 7 percentage points compared to 9 months. The number of new investment projects is also constantly increasing (up 66.1% over the same period).
- Though the additional capital fell, the project number still increased from a year earlier, showing investors were confident in Vietnam’s investment climate so they decided to expand their projects.
- Newly-invested projects are still focused on cities and provinces that have more advantages such as infrastructure, stable human resources, efforts to reform administrative procedures, and active investment promotion, like Hanoi, Hai Phong, Ho Chi Minh City, Bac Giang, Binh Duong, Bac Ninh and Dong Nai.
- Asian and traditional investors accounted the most proportion (Singaporean, Japanese, Chinese, Taiwanese (China), Hong Kong (China) and South Korean ones). These six partners accounted for 81.7% of total national investment capital in the first ten months).
- Although export of the FDI sector decreased, it posted a trade surplus and offset the trade deficit of the domestic business sector. With a trade surplus of 41.6 billion USD (including crude oil) and 40.17 billion USD (excluding crude oil), the FDI sector offset the trade deficit of nearly 18.46 billion USD of the domestic business sector, helping the country have a trade surplus of about 21.1 billion USD.
3. Accumulated foreign investment as of October 20, 2023
Accumulated as of October 20, 2023, the whole country has 38,622 valid FDI projects with a total registered capital of 460.07 billion USD. The accumulated realised capital of FDI projects is estimated 289.9 billion USD, equalling 63.5% of the total valid registered investment capital.
- By sector: Foreign investors have invested in 19 out of 21 sectors in the national economic classification system, in which the processing and manufacturing accounted for the highest proportion with nearly 278.6 billion USD, accounting for 60.6% of the total investment capital. It was followed by real estate sector with over 67.4 billion USD (representing 14.7%); electricity production and distribution with nearly 38.4 billion USD (or 8.3%).
- By counterpart: There are 143 countries having valid investment projects in Vietnam since Grenada has dissolved their only project. In which, the RoK ranked first with a total registered capital of over 84.1 billion USD (accounting for 18.3% of the total). Singapore ranked second with over 73.4 billion USD (representing for 16%). Next were Japan, Taiwan (China), and Hong Kong (China).
- By location: FDI has been present in all 63 provinces and cities nationwide, of which Ho Chi Minh City remains the leading province in attracting foreign investment with approximately 57.15 billion USD (accounting for 12.4% of the total investment capital), followed by Binh Duong with more than 40.2 billion USD (or 8.7% of the total investment capital), Hanoi with nearly 39.5 billion USD (representing 8.7% of the total investment capital).
(Detailed data in Appendix III attached)
II. FDI OUTFLOWS OF VIETNAM
In the first ten months of 2023, Vietnam’s total newly-registered and additional investment were about 424.34 million USD (up 93.9% year on year). Of which, 95 projects were granted new investment registration certificates, with a total registered capital of more than 251.15 million USD (equalling 64.4% year on year); and 19 projects registered to adjust their investment with additional capital of over 173.19 million USD (up 2.8 times year on year).
Vietnamese investors have invested in 14 sectors abroad. Of which, wholesale and retail took the lead with 32 newly-registered projects and 6 times of adjusting investment capital, with total registered capital of nearly 151.63 million USD, accounting for 35.7% of the total. Next came information and communication with over 119.37 million USD, accounting for 28.1%. Followed by electricity production and distribution, agriculture, forestry and fishery industry, manufacturing and processing industry and so forth.
There were 24 countries and territories receiving investment from Vietnam in the first ten months of 2023. Leading is Canada with one newly-registered and one capital-adjusted projects with the total registered capital of over 150.2 million USD, accounting for 35.4% of the total. Followed by Singapore, Laos and Cuba.
Accumulated as of October 20, 2022, Vietnam had 1,675 valid aboard investment projects with total registered investment capital of over 22.1 billion USD. In which, there are 141 projects of state-owned enterprises with a total investment of nearly 11.67 billion USD, accounting for 52.8% of the country’s total investment capital.
Vietnam’s investment aboard focuses mainly in: mining (31.5%); agriculture, forestry and fishery (15.5%). The areas receiving the most investment from Vietnam were Laos (24.7%); Cambodia (13.3%); and Venezuela (8.3%)./.
(Detailed data in Appendix IV and V attached)
Translated by Bao Linh
Ministry of Planning and Investment