Vietnam’s FDI inflows drop by 4.5%

Foreign direct investment (FDI) inflows into Vietnam experienced a 4.5% decrease between January and July 2023. Despite this decline, the country still managed to attract nearly $16.24 billion in FDI during the mentioned period, as reported by the Foreign Investment Agency under the Ministry of Planning and Investment. The manufacturing and processing sector emerged as the leading recipient, securing an impressive $10.93 billion.

FDI disbursement by July 20 was estimated at $11.58 billion, marking a slight increase of 0.8% compared to the previous year.

During the seven-month timeframe, 1,293 newly-registered projects were initiated, with a total capital investment of $7.94 billion. This represents a significant rise of 75.5% in the number of projects and 38.6% in capital investment compared to the same period last year.

Additionally, 736 existing projects received a combined $2.93 billion in investments, indicating a decrease of 42.5% year on year. However, the number of projects experiencing such investment rose by 27.1% during the same period.

Capital contribution and share purchase deals saw a substantial increase of 60.7%, reaching $4.16 billion.

Vietnam attracted investments from 94 countries and territories during this time. Singapore topped the list with $3.64 billion in investments, although this figure showed a decline of 15.5% year on year. South Korea followed closely with $2.34 billion, and China with $2.33 billion.

Among the 52 provinces and cities in Vietnam that received FDI, Hanoi received the highest amount of $2.28 billion, a remarkable increase of 2.76 times compared to the previous year. Hai Phong ranked second with over $2 billion, representing an impressive growth of 96.5%, while Ho Chi Minh City secured the third spot.