Vietnam has witnessed an impressive 8.2% year-on-year (YoY) upswing in foreign direct investment (FDI) inflows during the first eight months of this year. According to the latest data from the Foreign Investment Agency (FIA), a body under the Ministry of Planning and Investment, FDI surged to an impressive sum of nearly $18.15 billion. This surge also encompassed a substantial $1.91 billion for the period from August 1st to the 20th.
Delving deeper into the statistics, the period spanning January through August 2023 bore witness to the licensing of a staggering 1,924 projects, their combined registered capital exceeding $8.87 billion. This dynamic surge reflects a robust 69.5% and 39.7% YoY increase in the number of projects and capital value, respectively.
Foreign investors exhibited strong commitment to existing ventures, pledging an additional $4.53 billion to 830 ongoing projects. Furthermore, their total capital contributions and share acquisitions amounted to an impressive $4.47 billion.
The manufacturing and processing sector emerged as the leading magnet for foreign investments, boasting an infusion of nearly $13 billion, marking a notable 14.7% YoY ascent.
When it comes to discerning the origins of these capital flows, Singapore emerged as the premier foreign investor during the eight-month period, injecting more than $3.83 billion. This constituted a commanding 21.2% of the total foreign investment capital. Following closely, China made its presence felt with $2.69 billion, and Japan contributed significantly with $2.58 billion.
In terms of host cities, the vibrant capital, Ha Noi, secured the highest share of foreign investments, tallying a commendable total registered capital exceeding $2.34 billion. Hia Phong followed suit, attracting more than $2.08 billion in foreign investments.
Moreover, the tangible outcome of this influx is substantiated by a 1.3% YoY increase in the disbursed volume, which reached approximately $13.1 billion, according to reports from a reputable news agency.
The resounding success of Vietnam in attracting FDI during the initial eight months of this year underscores the nation’s continued prominence as a favoured investment hub in Southeast Asia, cementing its reputation as an attractive and dynamic market for foreign investors. As the year progresses, stakeholders will keenly watch for further developments in this thriving investment landscape.