As of December 20, 2023, the total newly registered capital, adjusted and contributed capital to buy shares and buy contributed capital of foreign investors reached approximately 36.6 billion USD, rising 32.1% year-on-year. The capital generated by FDI projects was estimated at 23.18 billion USD, up 3.5% over the same period in 2022.
Accumulated to December 20, 2023, the whole country has 39,140 valid projects with a total registered capital of 468.9 billion USD. The accumulated realised capital of foreign investment projects reached about 297.2 billion USD, equalling 63.4% of the total valid registered investment capital.
Details are as follows:
I. FDI INFLOWS OF VIETNAM
1. FDI attraction in 2023
1.1. FDI performance:
Realised capital:
As of December 20, 2023, disbursement of FDI projects were estimated at over 23.18 billion USD, up 3.5% year-on-year and 0.6 percentage point as compared with the figure to the first eleven months of this year.
Import and export performance:
Export: Export (including crude oil) was estimated at 258.8 billion USD, down 6.2% year-on-year, accounting for 73.1% of export turnover. Export (excluding crude oil) was over 256.9 billion USD, decreased 6.1% from a year earlier, accounting for 72.6% of the country’s export turnover.
Import: Imports of the foreign-invested sector attained over 210 billion USD, down 9.9% over the previous period and accounting for 64.2% of the country’s import turnover.
Despite the decrease in export turnover in 2023, the FDI sector saw a trade surplus of 48.8 billion USD including crude oil and nearly 46.9 billion USD excluding crude oil, while the domestic sector had a trade surplus of more than 21.9 billion USD.
1.2. Investment registration
As of December 20, 2023, the total newly registered capital, adjusted capital and capital contributions and share purchases of foreign investors stood at over 36.6 billion USD, up 32.1% year-on-year. The newly registered capital and capital contributions and share purchases surged while adjusted capital continued falling.
Of which:
Newly registered capital: There were 3,188 projects worth nearly 20.19 billion USD, were granted licenses, up 56.6% in number and 62.2% in value year-on-year.
Adjusted capital: There were 1,262 turns of project registering to adjust their investment (up 14% on-year) with a total additional capital of over 7.88 billion USD (down 22.1% year-on year).
Capital contribution and share purchases: There were 3,451 capital contribution and share purchases by foreign investors (down 3.2% year-on-year) with a value of nearly 5.97 billion USD (up 65.7% 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 over 23.5 billion USD, making up 64.2% of the total and increasing 39.9% year-on-year. Real estate came next with a total investment of approximately 4.67 billion USD, accounting for 12.7% of the total and increasing 4.8% compared to the same period last year. Followed were electricity production and distribution, and banking and finance with 2.37 billion USD (up 4.9% compared with the figure last year) and nearly 1.56 billion USD (up nearly 27 times annually), respectively.
It is also worth noting that processing and manufacturing was the sector with the largest number of newly-registered projects (33.7%) and capital adjustment (54.8%). Wholesale and retail led in the number of capital contribution and share purchases (accounting for 41.5%).
By counterpart:
There were 111 countries and territories investing in Vietnam in 2023. Singapore remained Vietnam’s leading source of foreign investment with over 6.8 billion USD, making up 18.6% of the total FDI registered in the country (up 5.4%% year-on-year). Japan came second with approximately 6.57 billion USD, making up 17.9% of the total, and increasing 37.3% year-on-year. Hong Kong (China) came third with a total registered investment capital of over 4.68 billion USD, accounting for 12.8% of the total and rising 2.1 times on-year. Next were China, Republic of Korea, Taiwan (China) and so on.
Regarding the number of projects, China led in terms of number of newly-registered projects (accounting for 22.2%); the RoK topped the list when it comes to turns of capital adjustment (25.9%) and capital contributions and share purchases (27.8%).
By location:
The foreign investors had invested in 56 provinces and cities nationwide in 2023. Ho Chi Minh City led the way with a total registered capital of over 5.85 billion USD, making up 16% of the total and increasing 48.5% from a year earlier. Hai Phong ranked second with over 3.26 billion USD, accounting 8.9% of the total and rising 66.8% compared with the figure in the same period last year. Followed by Quang Ninh, Bac Giang, Thai Binh and so on.
Ho Chi Minh City remains the best performer in attracting new projects (37.7%), turns of adjusted projects (23.5%) and capital contributions and share purchases (67.1%).
(Detailed data in Appendix II attached)
2. Evaluation of the FDI performance in 2023
- The realised capital of FDI projects increased 3.5% year-on-year. With the support of the Government and the Prime Minister and close coordination of ministries, sectors and localities in actively removing bottlenecks and legal barriers related to business and investment activities, enterprise have stabilised their business production.
- The total registered capital surged and reached the highest growth for the first time since the beginning of this year, up 32.1% over the same period and up 17.3 percentage points compared to the figure in the first eleven months.
- New investment increased sharply in both capital (up 62.2%) and number of projects (up 56.6%), focusing on cities and provinces that have more advantages such as infrastructure, stable human resources, efforts to reform administrative procedures, and active investment promotion, like Ho Chi Minh City, Hai Phong, Quang Ninh, Bac Giang, Thai Binh, Hanoi, Bac Ninh, Nghe An, Binh Duong and Dong Nai. These ten localities accounted for 78.6% of the country’s newly-registered projects and 74.4% of investment capital in 2023.
- Although the added capital decreased over the same period, the downturn has been improved. The number of projects adjusting their capital still maintained a rise of 14% despite the decrease in capital, showing investors were confident in Vietnam’s investment climate so they decided to expand their projects.
- Asian and traditional investors accounted the most proportion (those from Singapore, Hong Kong (China), South Korea, China, Japan and Taiwan (China). These six partners accounted for 81.4% of total national investment capital in 2023).
- 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 nearly 48.8 billion USD (including crude oil) and 46.9 billion USD (excluding crude oil), the FDI sector offset the trade deficit of over 21.9 billion USD of the domestic business sector, helping the country have a trade surplus of about 26.9 billion USD.
3. Accumulated foreign investment as of December 20, 2023
Accumulated as of December 20, 2023, the whole country has 39,140 valid FDI projects with a total registered capital of 468.92 billion USD. The accumulated realised capital of FDI projects is estimated at 297.2 billion USD, equalling 63.4% 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 over 283 billion USD, accounting for 60.4% of the total investment capital. It was followed by real estate sector with over 68 billion USD (representing 14.5%); electricity production and distribution with more than 40.67 billion USD (or 8.7%).
- By counterpart: There are 144 countries having valid investment projects in Vietnam. In which, South Korea ranked first with a total registered capital of approximately 85.87 billion USD (accounting for 18.3% of the total). Singapore ranked second with nearly 74.52 billion USD (representing for 15.9%). 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 more than 57.63 billion USD (accounting for 12.3% of the total investment capital), followed by Hanoi with 41.17 billion USD (or 8.8% of the total investment capital), Binh Duong with nearly 40.4 billion USD (representing 8.6% of the total investment capital).
(Detailed data in Appendix III attached)
II. FDI OUTFLOWS OF VIETNAM
In 2023, Vietnam’s total newly-registered and additional investment were about 420.9 million USD (equalling 78.8% year on year). Of which, 124 projects were granted new investment registration certificates, with a total registered capital of more than 282.68 million USD (equalling 66.3% year on year); and 25 projects registered to adjust their investment with additional capital of over 138.21 million USD (up 28.7% year on year).
Vietnamese investors have invested in 16 sectors abroad. Of which, wholesale and retail took the lead with 41 newly-registered projects and 7 times of adjusting investment capital, with total registered capital of 156.9 million USD, accounting for 37.3% of the total. Next came information and communication with nearly 120.6 million USD, accounting for 28.7%. Followed by electricity production and distribution, agriculture, medical and social assistance services, and forestry and fishery industry.
There were 26 countries and territories receiving investment from Vietnam in 2023. Leading is Canada with one newly-registered and two capital-adjusted projects with the total registered capital of nearly 150.3 million USD, accounting for 35.7% of the total. Followed by Singapore, Laos and Cuba.
Accumulated as of December 20, 2023, Vietnam had 1,701 valid aboard investment projects with total registered investment capital of 22.1 billion USD.
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 (13.2%); and Venezuela (8.3%)./.
(Detailed data in Appendix IV and V attached)
Translated by Bao Linh
Ministry of Planning and Investment