Vietnam attracts more than 18.7 billion USD of FDI

Statistics show that from the beginning of the year to September 20, the total amount of newly-registered, adjusted and contributed capital to buy shares of foreign investment capital (FDI) into Vietnam amounted to more than 18.7 billion USD, over the same period of 2021 worth 84.7%.  

Specifically, as of 20/9/2022, foreign investors have invested in 18 out of 21 national economic sectors. In particular, processing and manufacturing industry has ranked first with a total newly attracted investment capital of over 12.1 billion USD, accounting for 64.6% of the total registered investment capital. Second is real estate business with a total investment capital of over 3.5 billion USD, accounting for 18.7% of the total registered investment capital. The following are professional science and technology, wholesale and retail industries with registered capital of USD 676.9 million and USD 617.9 million, respectively.

Foreign investors focus on investing in new projects in major cities like Ho Chi Minh City and Hanoi. In particular, Ho Chi Minh City leads the list with the number of new projects accounted for 41.8%, the number of capital contributions to buy shares accounted for 66.6%, while Hanoi tops for the number of projects with capital adjustment, accounting for 18.4%.

At the same time, Vietnam has been invested by 97 countries and territories. In which, Singapore has come first with a total investment capital of over 4.75 billion USD, total FDI invested in Vietnam accounted for 25.3%, down 24.3% against the same period in 2021. Korea has ranked second with a total capital of over $3.8 billion, accounting for 20.3% of total investment capital, down 2.3% over the same period. And Japan is the third country with a total registered investment capital of over 1.9 billion USD and accounts for 10.2% of total investment capital.

Regarding import and export turnover, in the past 9 months, exports of the FDI sector emarkably increased. Export earnings (including crude oil) reached over $210.8 billion, up 18.4% over the same period and accounting for 74% of the country’s total export turnover. In addition, imports of the FDI sector were estimated at $181.78 billion, up 13.8% over the same period and accounting for 65.2% of the country’s turnover.

Calculated in the first 9 months of 2022, trade surplus in the FDI sector is over 29 billion USD including crude oil and over 27.3 billion USD excluding crude oil, so the domestic trade deficit is over 23.3 billion USD.

Accumulated to September 20, 2022, Vietnam has 35,725 valid FDI projects with a total registered capital of over 431.5 billion USD. The accumulated paid-in capital of the projects reached 267 billion USD, equivalent to 61.9% of the total valid registered investment capital.

According to economic experts, Vietnam has been taking more cautious approach to attract projects with financial potential, modern technology, less labor intensity and higher added value; as well as deter projects with outdated technology, labor intensity, environmental pollution and resources wasting factors.

Implementing Resolution No. 50-NQ/TW of the Politburo with regards to orientations to thoroughly establish the institutions and policies, and improve the quality and efficiency of foreign investment cooperation by 2030, the Government has issued an Action Program to execute this important Resolution.

Recently, on 02/6/2022, the Prime Minister signed a Decision No. 667/QD-TTg on approving the Strategy for Foreign Investment Cooperation in the 2021-2030 period, which directed ministries, sectors and localities actively participate in the creating of a fair, transparent and open investment and business environment; Ensure investment environment with a stable, consistent, synchronous and perfectly lawful system.

 Besides, in order to promote investment attraction in industrial parks and economic zones, the Ministry of Planning and Investment has advised the Government to issue Decree No. 35/2022/ND-CP dated May 28, 2022 regulating the management of industrial parks and economic zones; also added new forms of industries and economic zones; abolishing procedures for establishing industrial parks to reduce administrative procedures and supplementing and amending a number of regulations to improve the efficiency of land use in the development of industrial parks and economic zones.

According to economic experts, the timely decisions and direction of the Politburo, the Government and the Prime Minister, along with a solid macro foundation, will altogether be the advantages of Vietnam in attracting FDI capital in final months of the year as well as in the following years.

Source: Tapchitaichinh