As of July 20, 2023, the total newly registered capital, adjusted and contributed capital to buy shares and buy contributed capital of foreign investors reached approximately 16.24 billion USD, up 4.5% year-on-year. The capital generated by FDI projects was estimated at 11.58 billion USD, a slight increase of 0.8% over the same period in 2022.
Accumulated to July 20, 2023, the whole country has 37,839 valid projects with a total registered capital of 452.7 billion USD. The accumulated realised capital of foreign investment projects reached nearly 285.58 billion USD, equalling 63.1% of the total valid registered investment capital.
Details are as follows:
I. FDI INFLOWS OF VIETNAM
1. FDI attraction in the first seven months of 2023
1.1. FDI performance:
Realised capital:
As of July 20, 2023, disbursement of FDI projects were estimated at 11.58 billion USD, slight increase of 0.8% year-on-year and up 0.3 percentage point as compared with the figure to the first six months of this year.
Import and export performance:
Export: Export (including crude oil) was estimated at 148.83 billion USD, down 10.4% year-on-year, accounting for 73.7% of export turnover. Export (excluding crude oil) was nearly 142.67 billion USD, year-on-year decrease of 10.4%, accounting for 73.1% of the country’s export turnover.
Import: Imports of the foreign-invested sector attained over 117.1 billion USD, down 16.5% over the previous period and accounting for 64.3% of the country’s import turnover.
Despite the decrease in export turnover in the first seven months of 2023, the FDI sector saw a trade surplus of over 26.7 billion USD including crude oil and nearly 25.6 billion USD excluding crude oil, while the domestic sector had a trade surplus of nearly 13.7 billion USD.
1.2. Investment registration
As of July 20, 2023, the total newly registered capital, adjusted capital and capital contributions and share purchases of foreign investors stood at about 16.24 billion USD, up 4.5% year-on-year and 8.8 percentage points as compared with the figure in the first six 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 1,627 new foreign-invested projects, valued at approximately 7.94 billion USD, were granted licenses, up 75.5% in number and 38.6% in value year-on-year.
Adjusted capital: There were 736 turns of project registering to adjust their investment (up 27.1% on-year) with a total additional capital of nearly 4.16 billion USD (down 42.5% year-on year).
Capital contribution and share purchases: There were 1,627 capital contribution and share purchases by foreign investors (down 10.6% year-on-year) with a value of over 4.14 billion USD (up 60.7% 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 10.93 billion USD, making up 67.3% of the total and increasing 9.3% year-on-year. Real estate came next with a total investment of over 1.61 billion USD, accounting for 9.9% of the total. Followed were banking and finance, and science and technology, with more than 1.53 billion USD (down 51.5%) and nearly 737.6 million USD (up 40.2%) respectively.
It is also worth noting that processing and manufacturing was the sector with the largest number of newly-registered projects (31.1%) and capital-adjusted projects (55%). Wholesale and retail led in the number of capital contribution and share purchases (accounting for 43%).
By counterpart:
There were 94 countries and territories investing in Vietnam in the first seven months of 2023. Singapore remained Vietnam’s leading source of foreign investment with approximately 3.64 billion USD, making up 22.4% of the total FDI registered in the country (down 15.5% year-on-year). The Republic of Korea came second with nearly 2.34 billion USD, making up 14.4% of the total, and down 28.2% year-on-year. China came third with a total registered investment capital of over 2.33 billion USD, accounting for 14.4% of the total and rising 77.8% on-year. Next were Japan, Hong Kong (China), Taiwan (China) and so on.
Regarding the number of projects, China led in terms of number of newly-registered projects (accounting for 20%); the RoK topped the list when it comes to turns of capital adjustment (26.2%) and capital contributions and share purchases (28.5%)
By location:
The foreign investors had invested in 52 provinces and cities nationwide in the first seven months of 2023. Hanoi led the way with a total registered capital of nearly 2.28 billion USD, making up 14.1% of the total and rising 2.76 times over the same period in 2022. Hai Phong ranked second with over 2 billion USD, making up 12.3% of the total and rising 96.5% times compared with the figure in the same period last year. Next were Ho Chi Minh city, Bac Giang, Binh Duong and so on.
Ho Chi Minh City remains leading city in number of new projects (39.5%), turns of adjusted-projects (24.7%) and capital contributions and share purchases (69%).
(Detailed data in Appendix II attached)
2. Evaluation of the FDI performance in the first seven months of 2023
- The realised capital of FDI projects increased slightly by 0.8% year-on-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 increased for the first time (4.5%) after the continued fall from the beginning this year, and the figure was at more than 2.8 billion USD in July 2023, an increase of 8.9% compared to June, 41.9% compared to May and 85.7% compared to the same period last year.
- The newly-registered capital shot up compared with the figure in the first months of the year. The number of new projects also climbed compared to the same period in 2022. The growth rate of new projects was double the total investment capital, which shows that: (i) small and medium-sized enterprises continued to pay attention to and had confidence in the investment climate of Vietnam to expand operation; (ii) large corporations were considering their business regarding the impact of Global Minimum Tax policy. The number of under-1-million USD projects accounted for 69.4% of the total number of foreign-invested projects registered in Vietnam in the first seven months of this year, but its value only making up 2.7% of the total.
- The adjusted capital recorded a decrease of 42.5% year-on-year, but the downturn has been improved. The turn of projects had their capital adjusted up also maintained an increase over the same period, confirming the confidence of foreign investors in the investment environment of Vietnam their decisions to expand business.
- 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. Especially, with the additional capital of 1 billion USD of LG Innotek in Hai Phong city, the northern port city ranked the second in FDI attraction in the first seven months.
- Asian and traditional investors accounted the most proportion (Singaporean, Japanese, Chinese, Taiwanese (China), Hong Kong (China) and South Korean). These six partners accounted for 78.2% of total national investment capital in the first seven 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 over 26.7 billion USD (including crude oil) and nearly 25.6 billion USD (excluding crude oil), the FDI sector offset the trade deficit of 13.7 billion USD of the domestic business sector, helping the country have a trade surplus of about 13 billion USD.
3. Accumulated foreign investment as of July 20, 2023
Accumulated as of July 20, 2023, the whole country has 37,839 valid FDI projects worth nearly 452.7 billion USD. The accumulated realised capital of FDI projects is estimated approximately 285.58 billion USD, equalling 63.1% 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 more than 271.21 billion USD, accounting for 59.9% of the total investment capital. It was followed by real estate sector with 67.2 billion USD (representing 14.8%); electricity production and distribution with more than 38.4 billion USD (or 8.5%).
- By counterpart: There are 143 countries having valid investment projects in. In which, the RoK ranked first with a total registered capital of nearly 83.1 billion USD (accounting for 18.4% of the total). Singapore ranked second with about 72.9 billion USD (representing for 16.1%). Next were Japan, Taiwan (China), Hong Kong (China) and so on
- 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 57.07 billion USD (accounting for 12.6% of the total investment capital), followed by Binh Duong with approximately 40.1 billion USD (or 8.9% of the total investment capital), Hanoi with 39.3 billion USD (representing 8.7% of the total investment capital).
(Detailed data in Appendix III attached)
II. FDI OUTFLOWS OF VIETNAM
In the first seven months of 2023, Vietnam’s total newly-registered and additional investment were over 320.6 million USD (equalling 89.4% year on year). Of which, 69 projects were granted new investment registration certificates, with total registered capital of about 149.2 million USD (equalling 47.5% year on year); and 17 projects registered to adjust their investment with additional capital of over 174.4 million USD (3.8 times more year on year).
Vietnamese investors have invested in 13 sectors abroad. Of which, wholesale and retail took the lead with 20 newly-registered projects and 5 times of adjusting investment capital, with total registered capital of nearly 148.6 million USD, accounting for 46.3% of the total. Next came information and communication with over 109.3 million USD, accounting 34.1%. Followed by agriculture, forestry and fishery industry, banking and finance, and so forth.
There were 22 countries and territories receiving investment from Vietnam in the first seven 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 46.9% of the total. Followed by Singapore, Laos and Cuba.
Accumulated as of July 20, 2022, Vietnam had 1,655 valid aboard investment projects with total registered investment capital of over 22 billion USD. In which, there are 141 projects of state-owned enterprises with a total investment of nearly 11.67 billion USD, accounting for 53% of the country’s total investment capital.
Vietnam’s investment aboard focuses mainly in: mining (31.7%); agriculture, forestry and fishery (15.6%). The areas receiving the most investment from Vietnam were Laos (24.4%); Cambodia (13.4%); and Venezuela (8.3%)./.
(Detailed data in Appendix IV and V attached)
Translated by Bao Linh
Ministry of Planning and Investment