Vietnam welcomes nearly US 16 8 billion in investment in 8 months

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Vietnam
Foreign investors have invested in 18 sectors out of a total of 21 national economic sectors. Photo: T.D

Although newly registered investment capital decreased, both adjusted investment capital and GVMCP continued to increase over the same period.

Total additional registered capital reached over US$7.5 billion

According to many experts and some international organizations, Vietnam is facing a golden opportunity to attract a new wave of investment from abroad, especially investment in economic zones and industrial zones.

According to data from the Ministry of Planning and Investment, in the first eight months of the year, 1,135 new projects were granted investment registration certificates, with a total registered capital of over US$6.35 billion. There were 676 projects registered to adjust investment capital, the total registered capital increased to over US$7.5 billion; there were 2,425 turns of joint stock brokerage by foreign investors, the total value of contributed capital reached over US$2.9 billion.

Foreign investors have invested in 18 sectors out of a total of 21 national economic sectors. In which, the processing and manufacturing industry continued to lead with a total investment of over US$10.7 billion, accounting for 63.9% of the total registered investment capital. Real estate business ranked second with total investment capital of over US$3.3 billion, accounting for 19.9% ​​of total registered investment capital. Next are the professional science and technology activities; information and communication with a total registered capital of nearly US$620.8 million and US$518.9 million, respectively.

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%, 3% and 16.1% of total projects.

Notably, 94 countries and territories have invested in Vietnam in the first eight months of 2022. In which, leading with a total investment capital of over US$4.53 billion, accounting for 27% of total investment capital into Vietnam, down 27% over the same period in 2021; Korea ranked second with nearly US$3.5 billion, accounting for nearly 21% of total investment capital, up 43.7% over the same period. With a Lego project with a total investment of over US$1.3 billion, Japan ranked third with a total registered investment capital of nearly US$1.49 billion, accounting for 10.8% of the total investment capital.

However, based on the number of projects, Korea is still the partner with investors’ interest and makes new investment decisions as well as expanding investment projects and GVMCP the most in the first eight months of 2022 (accounting for 21.9% of new projects, 36.8% of adjustments and 34.9% of GVMCPs).

Foreign investors have invested in 53 provinces and cities across the country in the first eight months of 2022. Ho Chi Minh City leads the way with a total registered investment capital of over $2.7 billion, accounting for 16.1% of total registered capital investment and increased 24.4% over the same period in 2021. Binh Duong ranked second with a total investment capital of nearly US$2.64 billion, accounting for 15.7% of total capital, up 57.9% over the same period. Bac Ninh ranked third with a total registered investment capital of nearly US$1.75 billion, accounting for 10.4% of total capital and increasing nearly 2.4 times over the same period in 2021.

Ho Chi Minh City leads in number of new projects

In terms of the number of new projects, foreign investors still focus on investing in big cities with convenient infrastructure such as Ho Chi Minh City and Hanoi. In which, Ho Chi Minh City leads in the number of new projects, the number of GVMCPs and second in the number of projects with capital adjustment. Although newly registered capital has not fully recovered after the interruption in 2021, adjusted capital and GVMCP increased by 50.7% and 3.6%, respectively. Realized capital of foreign investment projects is estimated at US$12.8 billion, up 10.5% over the same period in 2021.

According to Nguyen Anh Tuan, Deputy Director of the Foreign Investment Department (Ministry of Planning and Investment), after the Covid-19 pandemic, attracting FDI into Vietnam is facing many opportunities to be able to receive a new wave of investment.

Firstly, with the effective control of the Covid-19 pandemic, maintaining stable production and business activities, Vietnam is still considered a safe, potential and attractive investment destination in the policy of diversifying the global supply chain of investors.

Second, Vietnam’s international position is being enhanced along with the active external economic activities of senior leaders of the Party and State. Vietnam’s international integration is deepening.

Thirdly, with the high attention of the Government and the participation of the whole political system, the consensus of businesses, Vietnam’s business-investment environment is increasingly open and favorable for investors.

Fourth, the advantage of human resources and the domestic market with nearly 100 million people with a rapidly growing middle class, creating a market with large purchasing power, is attracting the attention of foreign investors.

Fifth, domestic enterprises have the opportunity to participate deeply in the global supply chain. In addition, Vietnam has the opportunity to anticipate the trend of shifting the global production chain to attract foreign investors to develop some new fields in Vietnam.

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