Vietnam still be considered as an attractive investment destination for foreign investors

The total foreign direct investment (FDI) of Vietnam reached nearly US$16.8 billion as of August 20, down 12.3 per cent over the same period last year, reports the Foreign Investment Agency, Ministry of Planning and Investment.

The trend of falling newly-registered capital continued for eight months when the total registered capital reached $6.35 billion, down 43.9 per cent year-on-year.

Meanwhile, additional capital injected into existing projects rose by 50.7 per cent to $7.5 billion; capital contributions and share purchases were up 3.6 per cent to $2.9 billion.

Related: Here’s how to start your business in Vietnam as foreign investor

Many experts believed that although Vietnam was still considered an attractive investment destination, in the context of a decline in global FDI inflows due to recent world developments such as Russia-Ukraine tensions, supply chain disruption, high inflation, the new FDI inflows into Southeast Asian countries would have certain impacts.

Investors have become more and more cautious with new investment decisions.

From January-August, $12.8 billion of foreign-invested projects was disbursed, up 10.5 per cent year-on-year, signaling foreign investors’ confidence in Vietnam’s investment prospects.

Out of 21 economic sectors, foreign investors have invested in 18 industries. The manufacturing and processing industry continued to lead with a total investment of over $10.7 billion, accounting for 63.9 per cent of the total registered investment capital.

The real estate business ranked second with total investment capital of over $3.3 billion, accounting for 19.9 per cent ​​of total registered investment capital.

In terms of the number of new projects, wholesale and retail, the manufacturing and processing industry and professional science and technology activities are the industries that attract the most projects, accounting for 30.3 per cent, 25.3 per cent and 16.1 per cent of total projects, respectively.

Ninety-four countries and territories have invested in Vietnam in the first eight months of this year.

Singapore leads with a total investment capital of over $4.53 billion, accounting for 27 per cent of total investment capital in Vietnam.

It was followed by the Republic of Korea and Japan, with nearly $3.5 billion and $1.49 billion, respectively.

HCM City attracted the largest capital, with more than $2.7 billion, making up 16.1 per cent of the total, followed by Binh Duong with nearly $2.64 billion, and Bac Ninh with almost $1.75 billion.

As of August 20, the country had over 35,500 valid projects totalling over $430 billion. Meanwhile, disbursement is estimated at $264.4 billion, equal to 61.5 per cent of the total valid registered capital.

In the first eight months of this year, the foreign-invested sector reported an export value of $184.66 billion (including crude oil), up 17 per cent year-on-year and accounting for 73.9 per cent of the total.

Source: VNS