Tiếng Việt
中文 (中国)
Recent data released by Vietnam Foreign Investment Agency, under the Ministry of Planning and Investment, sheds light on the dynamic landscape of foreign investment in the country. As of March 20, 2024, Vietnam has seen a significant increase in foreign investment, with total registered capital reaching over $6.17 billion. This marks a notable 13.4% increase compared to the same period in 2023, indicating investor confidence in Vietnam’s market.
New Projects and Capital Adjustments
The data reveals that 644 new projects received investment registration certificates during this period, with a combined registered capital exceeding $4.77 billion. This represents a substantial 23.4% increase in the number of projects and a staggering 57.9% surge in registered capital compared to the previous year.
Additionally, 248 projects underwent capital adjustments, resulting in a total registered capital increase of $934.6 million. Although the number of projects increased by 6%, there was a 22.6% decrease in registered capital compared to the same period last year.
Furthermore, 604 projects involving capital contribution and share purchases by foreign investors were recorded, amounting to a total capital contribution of $466.2 million. However, this represents a decline of 14.1% in the number of projects and a substantial 61.7% decrease in capital compared to the previous year.
FDI Disbursement and Investment Trends
In the first three months of 2024, foreign direct investment (FDI) disbursement reached approximately $4.63 billion, marking a commendable 7.1% increase compared to the same period in 2023. This upward trend in FDI disbursement reflects a positive outlook for foreign investment in Vietnam in the coming years.
Despite the overall increase in investment, March saw smaller average project sizes compared to previous months. The average scale of new investment projects in March 2024 was approximately $4.9 million per project, down from $7.4 million in February and $10.6 million in January.
Sectoral Distribution and Investing Partners
Foreign investors have shown interest in a diverse range of sectors, with investments spanning 17 out of 21 national economic sectors. The processing and manufacturing industry attracted the largest share of investment, accounting for nearly 63.6% of total registered investment capital. The real estate business sector followed closely, comprising 25.6% of total registered investment capital.
Singapore remained the top investing partner, contributing over $2.55 billion, which accounts for 41.3% of total investment capital. Notably, investments from Singapore and Hong Kong (China) primarily comprised new investments, accounting for the majority of their total investment capital.
Regional Distribution
In terms of regional distribution, Hanoi emerged as the leading destination for foreign investment, with total registered investment capital exceeding $970.8 million. This represents a significant increase compared to the same period last year. Bac Ninh ranked second, with a total registered investment capital of nearly $745.2 million.
Vietnam’s foreign investment landscape continues to evolve, with robust growth seen across various sectors and regions. The surge in new projects and capital adjustments underscores the resilience of Vietnam’s economy and its attractiveness to foreign investors. As Vietnam remains committed to creating a conducive environment for investment, these trends bode well for sustained economic growth and development in the years to come.
**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 info@aslgate.com.
ASL LAW is the top-tier Vietnam law firm for in-depth legal advice in Vietnam and internationally. If you need any advice, please contact us for further information or collaboration.
