As of May 20, 2024, the total newly registered capital, adjusted and contributed capital to buy shares purchase of foreign investors reached over 11.07  billion USD, a year-on-year rise of 2%. The capital generated by FDI projects was estimated at 8.25 billion USD, up 7.8% over the same period in 2023.

Accumulated to May 20, 2024, the whole country has 40,285 valid projects with a total registered capital of 481.33 billion USD. The accumulated realised capital of foreign investment projects reached about 305.43 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 five months of 2024

1.1. FDI performance:

Realised capital:

As of May 20, 2024, disbursement of FDI projects were estimated at about 8.25 billion USD, up 7.8% year-on-year.

Import and export performance:

Export: Export (including crude oil) was estimated at more than 112.88 billion USD, up 13.1% year-on-year, accounting for 72.1% of export turnover. Export (excluding crude oil) was 111.83 billion USD, an increase of 13% from a year earlier, accounting for 71.5% of the country’s export turnover.

Import: Imports of the foreign-invested sector attained nearly 99.31 billion USD, an increase of 14.3% over the previous period and accounting for 63.1% of the country’s import turnover.

In the first five months of 2024, the FDI sector saw a trade surplus of 19.57 billion USD including crude oil and over 18.52 billion USD excluding crude oil, while the domestic sector had a trade deficit of over 11.05 billion USD.

1.2. Investment registration

As of May 20, 2024, the total newly registered capital, adjusted capital and capital contributions and share purchases of foreign investors stood at over 11.07 billion USD, a year-on-year rise of 2%.

Of which:

Newly registered capital: There were 1,227 projects worth approximately 7.94 billion USD, were granted licenses, up 27.5% in number and 50.8% in value year-on-year.

Adjusted capital: There were 440 turns of project registering to adjust their investment (down 9.3% year-on-year) with a total additional capital of over 2.08 billion USD (down 8.7% year-on year).

Capital contribution and share purchases: There were 1,158 capital contribution and share purchases by foreign investors (down 9.4% year-on-year) with a value of more than 1.05 billion USD (down 68.2% year-on-year).

(Detailed data in Appendix I attached)

By sector:

Foreign investors poured funds into 17 out of 21 sectors in the national economic classification system, of which the processing and manufacturing industry took the lead with over 7.43 billion USD, making up 67.1% of the total and rising 11.9% from the same period last year. The real estate came next with a total investment of approximately 1.98 billion USD, accounting for 17.9% of the total and increasing 70.8% compared with the same period last year. Followed were wholesale and retail, and transportation and warehousing with over 514.2 million USD and nearly 342.2 million USD, respectively

It is also worth noting that processing and manufacturing was the sector with the largest number of newly-registered projects (35.9%) and number of capital adjustment (62.3%). The wholesale and retail led in the number of capital contribution and share purchases (43.4%).

By counterpart:

There were 78 countries and territories investing in Vietnam in the first five months of 2024. Singapore was Vietnam’s leading source of foreign investment with approximately 3.25 billion USD, making up 28.2% of the total FDI registered in the country (up 28.2% year-on-year). Hong Kong (China) came second with nearly 1.45 billion USD, making up 13.1% of the total, and 2.2 times higher than the figure as compared with the same period last year. Investment of Singapore and Hong Kong (China) are mainly new investment, accounting for 99% and 66.1% of their total investment in the first five months of 2024, respectively. Next were Japan, China and so on.

Regarding the number of projects, China led in terms of number of newly-registered projects (accounting 28.3%); South Korea topped the list when it comes to turns of capital adjustment (24.1%) and capital contributions and share purchases (26.3%).

By location:

The foreign investors had invested in 47 provinces and cities nationwide in the first five months of 2024. Ba Ria - Vung Tau led the way with a total registered capital of over 1.52 billion USD, making up 13.8% of the total and 12 times higher than the figure of previous year. Hanoi ranked second with nearly 1.14 billion USD, accounting 10.3% of the total and falling 39% year-on-year. Bac Ninh ranked third with a total registered capital of over 1.06 billion USD, accounting for 9.6% of the total. Followed by Ho Chi Minh City, Dong Nai, Quang Ninh and so on.

Ho Chi Minh City was the best performer in attracting new projects (37.8%), capital contributions and share purchases (71.1%) and adjusted capital (16.4%).

(Detailed data in Appendix II attached)

2. Evaluation of the FDI performance in the first five months 2024

- The additional investment capital in May recorded the highest amount in the first months of 2024, 2.8 times higher than the figure of April, up 72% compared to March, 4.1 times higher than the figure of February, and 3.6 times higher than the figure in January. The total added capital in the first five months of 2024 still decreased compared to the same period in 2023 but the downturn was gradually improved, rising by 16.9 percentage points compared to the first four months of the year.

- Investment 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 Ba Ria - Vung Tau, Hanoi, Bac Ninh, Ho Chi Minh City, Dong Nai, Quang Binh, Bac Giang, Hai Phong, Thai Nguyen and Hung Yen. These ten localities accounted for 74.7% of the country’s newly-registered projects and 75.2% of the total investment capital in the first five months.

- Asian and traditional investors accounted the most proportion (those from Singapore, Hong Kong (China), Japan, China and South Korea). These five partners accounted for 73 % of newly-registered projects and 73.5% of total national investment capital).

- Many large projects in the fields of energy (production of batteries, photovoltaic cells and silicon bars), component manufacturing, electronic products, and high value-added products received new investment and expansion in the first five months of 2024.

- Export of the FDI sector continued to increase compared to the same period last year. With a trade surplus of 19/57 billion USD (including crude oil) and 18/52 billion USD (excluding crude oil), the FDI sector offset the trade deficit of over 11.05 billion USD of the domestic business sector, helping the country have a trade surplus of over 8.5 billion USD in the first five months of 2024.

3. Accumulated foreign investment as of May 20, 2024

Accumulated as of May 20, 2024, the whole country has 40,285 valid FDI projects with a total registered capital of approximately 481.33 billion USD. The accumulated realised capital of FDI projects is estimated at about 305.43 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 approximately 290.9 billion USD, accounting for 60.4% of the total investment capital. It was followed by real estate sector with nearly 70.6 billion USD (representing 14.7%); electricity production and distribution with about 40.7 billion USD (or 8.5%).

- By counterpart: There are 146 countries having valid investment projects in Vietnam. In which, South Korea ranked first with a total registered capital of 87.2 billion USD (accounting for 18.1% of the total). Singapore ranked second with 77.9 billion USD (representing for 16.2%). 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 remained the leading province in attracting foreign investment with approximately 57.8 billion USD (accounting for 12% of the total investment capital), followed by Hanoi with over 43.4 billion USD (or 9% of the total investment capital), Binh Duong with over 40.7 billion USD (representing 8.5% of the total investment capital).

(Detailed data in Appendix III attached)

II. FDI OUTFLOWS OF VIETNAM

In the first five months of 2024, Vietnamese investors invested 42 new projects abroad and 20 turns of adjusting capital. Vietnam’s total investment were about 136.07 million USD (equivalent 43% year on year).

Vietnamese investors have invested in 16 sectors abroad. Of which, mining sector took the lead (accounting for 43.1% of the total), processing and manufacturing industry (or 23.9%), wholesale and retail (or 8.3%). The rest were other sectors.

There were 16 countries and territories receiving investment from Vietnam in the first five months of 2024, namely the the Netherlands (40.1%), Laos (36.8%), the US (5.6%), New Zealand (4.3%).

Accumulated as of May 20, 2024, Vietnam had 1,733 valid aboard investment projects with total registered investment capital of over 22.25 billion USD.

Vietnam’s investment aboard focuses mainly in: mining (31.6%); agriculture, forestry and fishery (15.6%). The areas receiving the most investment from Vietnam were Laos (24.8%); Cambodia (13.1%); and Venezuela (8.3%)./.

(Detailed data in Appendix IV and V attached)

Bao Linh

Ministry of Planning and Investment