FDI flows to Vietnam up 32% in four months

Total registered foreign direct investment (FDI) into Vietnam, including newly registered and adjusted capital, plus foreign investors’ contributions and share purchases, hit 18.24 billion USD as of April 27, up 32% year-on-year, reported the Ministry of Finance’s National Statistics Office (NSO) on May 3.

Specifically, 1,249 new projects were licensed with a combined registered capital of 12.15 billion USD, marking a 3.7% annual rise in volume and a 2.2-fold increase in value. Manufacturing and processing dominated, pulling in 8.12 billion USD, or 66.8% of the total. Electricity, gas, water production and distribution came in second with 2.31 billion USD (19%), while other sectors drew 1.72 billion USD (14.2%).

Notably, realised FDI in Vietnam during the first four months was estimated at 7.40 billion USD, up 9.8% year-on-year, the highest level for the period in the past five years. Of this, the manufacturing and processing sector disbursed 6.12 billion USD (82.7%), real estate activities 540.5 million USD (7.3%), and electricity, gas, hot water, steam, and air conditioning production and distribution 270.6 million USD (3.7%).

The NSO also reported that 316 316 existing projects registered additional capital of 3.13 billion USD, a sharp 51% drop from the same period last year.

Combining newly registered and adjusted capital, total FDI into manufacturing and processing reached 10.49 billion USD, or 68.6% of the total. Electricity, gas, water and air conditioning drew 2.31 billion USD (15.1%), while other sectors took 2.48 billion USD (16.3%).

Foreign investors made 976 capital contribution and share purchase deals valued at 2.96 billion USD, jumping 61.9% year-on-year. Of these, 325 transactions boosted enterprises’ charter capital by 445.13 million USD, while 651 share acquisitions without capital hikes totaled 2.51 billion USD.

By sector, wholesale and retail trade, including repair of automobiles, motorcycles and motorbikes, captured 1.89 billion USD (63.9%). Professional, scientific and technological activities attracted 321 million USD (10.9%), and other sectors 747 million USD (25.2%).

Among 53 countries and territories with newly licensed projects in the first four months, Singapore led with 6.05 billion USD, accounting for 49.8% of the total. It was followed by the Republic of Korea with 4.08 billion USD (33.6%), China 524.1 million USD (4.3%), Japan 462 million USD (3.8%), Hong Kong (China) 329.2 million USD (2.7%), and the Netherlands 318.5 million USD (2.6%)./.