Tiếng Việt
中文 (中国)
日本語
Foreign Direct Investment (FDI) in Vietnam continues to thrive, reaching an estimated USD 14.15 billion in the first eight months of 2024. This figure marks an 8% increase compared to the same period last year, setting a five-year high for FDI realized during this timeframe. Total registered foreign investment capital in the country has also grown substantially, reaching USD 20.52 billion, a 7% rise year-on-year, demonstrating Vietnam’s growing appeal as a destination for foreign investors.
Breakdown of Foreign Investment in Vietnam
According to the General Statistics Office, as of August 31, 2024, total registered foreign investment in Vietnam—comprising newly registered capital, adjusted capital, and capital contributions through share purchases—amounted to USD 20.52 billion. This includes a significant influx of newly registered capital, with 2,247 new projects licensed and nearly USD 12 billion in registered capital, an 8.5% increase in the number of projects, and a notable 27% surge in capital.
The processing and manufacturing industry leads the way, securing USD 14.17 billion in new FDI, accounting for 69% of total registered capital. The real estate sector follows with USD 3.36 billion, and the wholesale and retail sector (USD 844.9 million).
Adjusted and Ongoing Investment Projects
In addition to new projects, 926 previously licensed projects adjusted their investment capital, adding USD 5.71 billion, a 14.8% year-on-year increase. When considering both new and adjusted capital, FDI in the processing and manufacturing sector alone reached USD 13.61 billion, representing 76.8% of total FDI in these sectors. Real estate investments amounted to USD 2.55 billion, while other industries attracted USD 1.56 billion.
Capital contributions and share purchases by foreign investors amounted to USD 2.81 billion, reflecting a 40.9% decrease compared to the same period last year. Of these, 838 transactions increased enterprise charter capital by USD 1.27 billion, while 1,358 transactions involved foreign investors purchasing domestic shares without altering charter capital, valued at USD 1.54 billion. The largest share of this capital was directed toward the real estate sector, which attracted USD 811.8 million (28.9%), followed by science and technology-related activities at USD 588.3 million (20.9%).
FDI Implementation Reaches New Heights
FDI implementation in Vietnam reached its highest level in five years, with USD 14.15 billion realized in the first eight months of 2024, an 8.0% increase compared to the same period in 2023. The processing and manufacturing sector again dominated, accounting for USD 11.28 billion (79.7% of total realized FDI). Real estate activities followed, with USD 1.27 billion (9.0%), while electricity, gas, and air conditioning production contributed USD 542.3 million (3.8%).
Vietnam’s Outbound Investment Declines
While FDI into Vietnam surged, Vietnam’s outbound investment saw a notable decline. In the first eight months of 2024, 75 new overseas projects were granted investment certificates, with Vietnamese contributions totaling USD 148 million, representing a 39.4% drop from the previous year. Additionally, 17 projects adjusted their capital, with a total reduction of USD 736.7 million. Overall, Vietnam’s total outbound investment fell to USD 147.3 million, a significant 64.6% decrease compared to 2023.
Vietnamese investors directed their capital to 25 countries and territories during the first eight months of 2024. The Netherlands emerged as the top destination, receiving USD 54.6 million, or 37.1% of total outbound investment. Laos followed with USD 37.8 million (25.7%), while the UK and the US received USD 19.8 million (13.4%) and USD 18.6 million (12.7%), respectively.
Vietnam’s strong FDI performance in 2024 underscores the country’s continued attractiveness as a key destination for foreign investors, particularly in the manufacturing and real estate sectors. The robust growth in registered and realized FDI highlights the positive economic environment in Vietnam, making it a regional leader in attracting global capital.
ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient, and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].
ASL LAW is a top-tier Vietnamese law firm that provides in-depth legal advice in Vietnam and internationally. If you need any advice, don’t hesitate to get in touch with us for further information or collaboration.
