Foreign investment capital into Vietnam reached 12.25 billion USD

In the first 4 months of 2021, the total foreign investment capital into Vietnam reached 12.25 billion USD. (99.3% compared to the same period in 2020)

Vietnam remains attractive to foreign investors. Image: VIR

Data from the Foreign Investment Agency, as of April 20, 2021, the total newly registered capital, adjusted and contributed capital to buy shares of foreign investors reached 12.25 billion USD, equaling 99.3 % over the same period in 2020.

Thus, foreign investment in Vietnam started to slow down, only approximately equal to the same period. Meanwhile, in the first three months of the year, foreign investment increased over the same period for the first time, since the beginning of the Covid-19 pandemic. Specifically, in the first quarter, the country attracted 10.13 billion USD, up 18.5% over the same period in 2020.

Recovery from the pandemic

The foreign investment capital in the first quarter increased strongly because, in March 2021, there was Long An Gas Power Project with registered capital of 3.1 billion USD. Meanwhile, in April, no large-scale projects were registered for investment.

Out of a total of more than 12 billion USD of foreign investment in Vietnam, the newly registered capital is nearly 8.5 billion USD, up 24.7% over the same period.

Meanwhile, additional capital was 2.7 billion USD, down by 10.6% over the same period last year. The decrease in additional capital was mainly due to the fact that in April 2020, the Southern Vietnam Petrochemical Complex was adjusted to increase capital by 1.38 billion USD.

In particular, the investment capital through capital contribution and share purchase continued to decline sharply, reaching over US $ 1 billion, down 57.8% over the same period.

According to the Foreign Investment Agency, at present, the production and business activities of enterprises have continued to recover from the pandemic. That is also one of the reasons why the realized capital of foreign investment projects in 4 months reached 5.5 billion USD, up 6.8% over the same period. This is quite a positive figure.

In addition, a piece of positive information recorded by the Foreign Investment Agency is that the average size of newly licensed projects and capital adjusted projects has both increased compared to the same period in 2020. Specifically, increased from 6.9 million USD/new project in 4 months of 2020 to 18.7 million USD/new project in 4 months of 2021 and from 9.2 million USD/project adjusted to over 10, 4 million USD/project with adjusted capital.

Main investment sectors

Data from the Foreign Investment Agency also showed that, in the past four months, foreign investors have invested in 17 fields, in which the processing and manufacturing sector ranked first with the total investment capital of 5.2 billion USD, accounting for 42.4% of the total registered investment capital.

Next, is the power production and distribution field, with a total investment capital of nearly 5.1 billion USD, accounting for 41.3% of total registered investment capital. After that, the real estate, wholesale and retail sectors, respectively, with total registered capital reached 778 million USD and 464 million USD. The rest are other fields.

There were 67 countries and territories investing in Vietnam in the first four months of the year. Singapore leads with total investment capital of over 4.8 billion USD, accounting for nearly 39.6% of total investment capital in Vietnam; Japan ranked second with a total investment capital of over 2.5 billion USD, accounting for 20.5% of total investment capital.

Notably, Singapore and Japan investment capital mainly in the form of new investment, accounting for 91.1% and 71.5% of the total registered capital of these two countries, respectively.

South Korea ranked third, with a total registered investment capital of nearly 1.5 billion USD, accounting for 12.1% of total investment capital. Followed by China, Hong Kong, the United States …

Thus, accumulated up to now, the whole country has 33,463 valid foreign investment projects with a total registered capital of 394.9 billion USD. The accumulated realized capital of foreign direct investment projects was estimated at 238.36 billion USD, equaling 60.4% of total valid registered investment capital.

ASL LAW is the top-tier Vietnam law firm for doing business in Vietnam. If you need any advice, please contact us for further information or collaboration.


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