Singapore Emerges as Top Foreign Investor in Vietnam in Q1

Vietnam has attracted a significant influx of foreign investment totaling $6.17 billion in the first quarter of this year, with Singapore emerging as the largest investor, accounting for 41.3% of the total investment. The increase in registered capital, up by 13.4% compared to the same period last year, reflects growing confidence in Vietnam’s economy.

According to the Foreign Investment Agency, a substantial portion of the investment, amounting to $4.77 billion, was allocated to 644 new projects, marking a 23.4% increase in project numbers and a significant 57.9% rise in investment value. Additionally, $934.6 million was earmarked for existing projects, with $466.2 million designated for stakes and capital contribution.

Despite a slight decline in average capital per new project in March, the disbursed foreign investment increased by 7.1% in the first quarter to reach $4.63 billion, indicating a positive trend in disbursement that is expected to continue.

Foreign investors directed their capital across various sectors, with the manufacturing and processing industry attracting the most significant investment, totaling $3.93 billion. The real estate sector also experienced substantial growth, with total registered capital reaching $1.58 billion, more than double compared to the same period last year.

Singapore, with a total registered capital of $2.55 billion, led the pack as the largest investor in Vietnam, followed by Hong Kong with $1.05 billion. Notable projects include Singapore’s $662 million urban project, Lumi Hanoi.

Hanoi emerged as the top FDI destination, attracting an influx of $970.8 million, followed by Bac Ninh with $745.2 million, indicating a diversification of investment across different regions within Vietnam.