Singapore overtakes Japan in terms of FDI capital inflows into Vietnam

Japan’s FDI inflows into Vietnam tend to slow down, making this country ranked after Singapore for the first time in terms of total investment capital in Vietnam.

Data from the Foreign Investment Agency (Ministry of Planning and Investment) as of February 20 shows that Singapore is the leading country in terms of total foreign direct investment (FDI) into Vietnam in the first two months of the year with a figure of more than 1.7 billion USD. Korea has ranked second with a total investment capital of 1.4 billion USD.

Accumulated up to now, Korea is still the leading country pouring capital into Vietnam with a total registered capital of over 78.4 billion USD (accounting for 18.7% of total investment capital).

However, after many consecutive years being  the country with second-largest total investment in Vietnam, now Japan has been overtaken by Singapore. Japan’s FDI inflows tend to slow down since 2020 while Singapore’s investment continues to grow.

Therefore, since the beginning of this year, the lion island nation has surpassed Japan for the first time, becoming the “runner-up” for direct investment in Vietnam.

Particularly in the first two months of the year, the Foreign Investment Agency said that newly registered capital still decreased because there were few large-scale projects. However, adjusted capital and contributed money to buy shares increased over the same period.

Besides, it is estimated that FDI projects by February 20 have disbursed 2.7 billion USD, up more than 7% over the same period last year.

In the first two months of the year, foreign investors poured into 17 industries out of 21 national economic sectors. The processing and manufacturing industry play a leading role with a total investment of over 3.13 billion USD, accounting for nearly 63% of the total registered investment capital.

Real estate business ranked second with a total capital of more than 1.5 billion USD, accounting for more than 30%, followed by professional science and technology activities, electricity production and distribution with a total registered capital of 109.6 million USD and nearly 60 million USD, respectively…

In the first two months of the year, several large-scale projects include the construction investment project of VSIP Bac Ninh (Singapore) service – urban infrastructure with an additional investment of nearly 941 million USD; and the project of Samsung Electromechanics Vietnam Company with increased investment capital of 920 million USD in Thai Nguyen.

In addition, the factory project of manufacturing electronic equipment, network equipment, and multimedia audio products (Hong Kong) has also increased its investment by nearly 306 million USD in Bac Ninh.

As of February 20, FDI projects have covered all 63 provinces and cities. Ho Chi Minh City is still the leading locality attracting FDI with over 52.8 billion USD (accounting for 12.6% of total investment capital). Next is Binh Duong with nearly 37.8 billion USD (accounting for 9% of total investment capital); Hanoi with almost 37.6 billion USD (accounting for almost 9% of total investment capital).

(Source: VnExpress)

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