Vietnam’s FDI projected to reap up to 38 bln USD in 2023

According to the Foreign Investment Agency under the Ministry of Planning and Investment (MPI), Vietnam is likely to attract 36-38 billion USD in foreign direct investment (FDI) in 2023. The figure was nearly 22.4 billion USD in 2022.

Vietnam’s FDI projected to reap up to 38 bln USD in 2023 hinh anh 1

Vietnam remains an attractive destination for foreign investors (Photo: VNA)

According to the Foreign Investment Agency under the Ministry of Planning and Investment (MPI), Vietnam is likely to attract 36-38 billion USD in foreign direct investment (FDI) in 2023. The figure was nearly 22.4 billion USD in 2022.

Deputy Director of the FIA Do Van Su said disbursement of foreign investment this year is expected to hit 22-23 billion USD,.

Su acknowledged that the opening of China’s economy might affect Vietnam's foreign investment attraction, adding that China remained the leading investment destination in the region, so when they opened up, capital will flow into this market while that to Vietnam and other economies in the region will be limited.

On the contrary, the investment capital movement of the Republic of Korea (RoK) , Japan, and Taiwan (China) will be accelerated. This shift will be accelerated until 2025, and Vietnam will be a preferred investment destination for investors, he added.

Vietnam’s FDI projected to reap up to 38 bln USD in 2023 hinh anh 2

Hanoi city (Photo: VNA)

Currently, the RoK, Japan and Taiwan (China) are Vietnam’s major sources of foreign investment and they have constantly increased their investments in Southeast Asian countries.

According to FIA, essential factors for FDI to continue to prosper in 2023 include economic growth results in 2022 and endless efforts of authorities in improving the business investment environment, creating trust with investors, and effectively exploiting the advantages of free trade agreements.

Minister of Planning and Investment Nguyen Chi Dung said that Vietnam had adopted a selective approach to attracting foreign investment inflows which will contribute to the country's implementation of the sustainable development strategy.

Priority will be given to projects using new and green technologies, with high added value, modern corporate governance, and high spillover effects, ensuring technology transfer, and being integrated with global supply and production chains, Dung said.

To lure more foreign investment, he emphasised the importance of developing innovation and financial centres at the regional and international levels, creating a driving force for socio-economic development in the coming period, adding that stabilising the macro-economy, improving infrastructure and the quality of human resources will be also needed.

So far this year, Vietnam saw good signs in foreign investment attraction as nearly 900 million USD of FDI has been registered in the northern province of Bac Giang.

On January 7, China’s Yadea Group said it will invest 100 million USD in a factory to manufacture and assemble electric motorcycles with an expected capacity of about 2 million vehicles per year in the province's Tan Hung Industrial Park. Covering an area of 23.2ha, the project will be implemented in the second quarter of 2023.

Earlier on January 2, Bac Giang province granted an investment certificate to Singapore’s Ingrasys Pte Ltd, the Fulian precision technology factory project investor signed an MoU with Chinese investor Hainan Longi Green Energy Technology Co Ltd on a project to produce solar panels.

Both projects will be conducted from the first quarter of 2023, with a combined registered capital of about 761 million USD.

Foreign investment in Vietnam remained a bright spot in the country’s 2022 economic panorama, despite experiencing a year-on-year decrease in value, thanks to its disbursement reaching a five-year high.

Data from the MPI showed as of December 20, there were 2,036 newly-registered FDI projects worth 12.45 billion USD, up 17.1% year-on-year in the quantity, but down 18.4% in value.

In addition, 1,107 projects had their capital raised with a total amount of 10.12 billion USD, up 12.4 % and 12.2 % year-on-year, respectively.

Capital contributions and share purchases (foreign indirect investment or FII) were worth 5.15 billion USD, down 25.2 %. This figure made the total foreign investment in the country in 2022 top 27.7 billion USD.

Meanwhile, FDI disbursement in 2022 hit nearly 22.4 billion USD, up 13.5% year-on-year, making it the highest amount in the past five years, the General Statistics Office (GSO) reported.

By the end of last year, the country was home to 36,278 valid projects with a total registered capital of approximately 438.7 billion USD. The accumulated realised capital of foreign investment projects topped 274 billion USD, equalling 62.5 % of the total valid registered investment capital.

Foreign investors poured funds into 19 out of the 21 sectors in the national economic classification system, of which the processing and manufacturing industry maintained its lead in terms of attracting FDI with a combined investment of over 16.8 billion USD, accounting for 60.6 % of the country’s total.

Among the 108 nations and territories pouring capital into Vietnam this year, Singapore ranked first with 6.46 billion USD. It was followed by the RoK and Japan./.

Source: VNS
en.vietnamplus.vn

Related News

Many foreign enterprises find opportunities and expand investment in Vietnam

Many foreign enterprises find opportunities and expand investment in Vietnam

VCN - In the context of the world investment wave shifting, Vietnam has the opportunity to become the world's factory, many foreign enterprises have been looking for investment opportunities as well as expanding investment in Vietnam.
Increase foreign investment resources from improving the business environment

Increase foreign investment resources from improving the business environment

VCN - In the two years 2024-2025, the proportion of foreign invested enterprises (FDI) expected to expand production and business will decrease compared to previous years, reflecting a more cautious trend of FDI enterprises due to the impact of the current unpredictable global economic context.
Vietnam is ready to welcome a new wave of investment in the semiconductor industry

Vietnam is ready to welcome a new wave of investment in the semiconductor industry

VCN - Deputy Minister of Planning and Investment Tran Duy Dong (Photo) gave an interview to Customs Magazine about Vietnam's preparations to attract FDI into the semiconductor industry.
High-quality human resources: "Hold the gold, don

High-quality human resources: "Hold the gold, don't let it fall"

VCN - The shortage of high-quality human resources, especially in high-tech fields, is a major bottleneck in attracting large technology corporations to shift investment locations in research, development and production to Vietnam. Therefore, if Vietnam does not fully prepare the conditions to welcome the wave of high-quality FDI investment, Vietnam will miss a "gold mine" in the future.

Latest News

Five trends in exporting through e-commerce

Five trends in exporting through e-commerce

VCN - On May 22, 2024, Amazon Global Selling announced the prominent cross-border e-commerce (CBEC) trends shaping Vietnam's online export economy. Concurrently, it launched phase two of the program "CBEC: The breakthrough era" in collaboration with the Vietnam e-Commerce and Digital Economy Agency (iDEA) under the Ministry of Industry and Trade.
Vietnamese firms urged to watch global trade policies

Vietnamese firms urged to watch global trade policies

Experts say Vietnamese firms should keep an eye on global trade moves by major economies to figure out how best to promote the consumption and export of products made in Việt Nam, in the context of a glut of cheap Chinese goods flooding the world market.
Vietnam’s tra fish export tipped to bounce back

Vietnam’s tra fish export tipped to bounce back

Vietnamese tra fish export has roared back to growth after a significant drop recorded earlier this year as countries have scaled up their imports, according to insiders.
FDI attraction in five months tops 11 billion USD

FDI attraction in five months tops 11 billion USD

More than 11.07 billion USD in foreign direct investment (FDI) was funneled into Vietnam during January-May, up 2% against the same time last year, according to the Ministry of Industry and Trade (MoIT)’s Foreign Investment Agency.

More News

What to do to develop Vietnam

What to do to develop Vietnam's automobile industry when implementing FTAs?

VCN - On May 24, Customs Magazine organized a discussion on the topic "Vietnam's automobile industry implements the Free Trade Agreement: In which direction to develop?"
The processing and manufacturing industry increased by 6.3% in four months

The processing and manufacturing industry increased by 6.3% in four months

VCN - Continuing the recovery momentum from the end of 2023, industrial production in April and the first four months of 2024 continues to show a positive trend. Of which, the processing and manufacturing industry increased by 6.3%.
Capital city to become an agriculture hub

Capital city to become an agriculture hub

The city’s cash crops were said to not require a large cultivating area but a high standard of production and processing, which have been identified as a solid foundation to penetrate foreign markets.
Renewables – key to green development in Mekong Delta

Renewables – key to green development in Mekong Delta

Renewable energy is seen as a sustainable choice for the Mekong Delta region to respond to environmental challenges, given that the country’s rice and fisheries granary has lost up to 300 million USD to prolonged drought and extreme salt intrusion.
Promoting sustainable growth with a creative economy

Promoting sustainable growth with a creative economy

VCN - Although the creative economy is a fairly new concept, in reality in Vietnam, each year the export of creative goods is helping Vietnam earn billions of dollars.
Businesses have a "headache" because exported goods are smuggled into the market

Businesses have a "headache" because exported goods are smuggled into the market

VCN - The situation of some businesses and factories in Ho Chi Minh City losing exported goods, counterfeiting and imitating brands is causing many consequences for businesses.
Fruits and seafoods of Vietnam have a huge advantage in the UK market

Fruits and seafoods of Vietnam have a huge advantage in the UK market

VCN - Thanks to UKVFTA (Vietnam - UK Free Trade Agreement), Vietnam's seafood become more competitive in the UK market compared to products from China, Thailand, Malaysia, Indonesia, Philippines, and India. Meanwhile, seafood benefits from less complicated import procedural requirements compared to many other countries.
Businesses call for stricter management of durian industry

Businesses call for stricter management of durian industry

Amid a boom in durian exports, businesses are calling for strict management mechanisms in the industry to help growers develop sustainably.
Furniture fair seeks to help firms link up with new international buyers

Furniture fair seeks to help firms link up with new international buyers

The second Vietnam ASEAN International Furniture & Home Accessories Fair to be held in HCM City from August 27 to 30 will provide a platform for Southeast Asian manufacturers to display their best products and connect with global buyers.
Read More

Your care

Latest Most read
Five trends in exporting through e-commerce

Five trends in exporting through e-commerce

VCN - "The export potential of Vietnam is enormous. We aim to strengthen cooperation with government agencies to help local businesses seize this global opportunity," said Mr. Gijae Seong, Managing Director of Amazon Global Selling Vietnam.
Vietnamese firms urged to watch global trade policies

Vietnamese firms urged to watch global trade policies

Experts say Vietnamese firms should keep an eye on global trade moves by major economies to figure out how best to promote the consumption and export of products made in Việt Nam, in the context of a glut of cheap Chinese goods flooding the world market.
Vietnam’s tra fish export tipped to bounce back

Vietnam’s tra fish export tipped to bounce back

Vietnamese tra fish export has roared back to growth after a significant drop recorded earlier this year as countries have scaled up their imports, according to insiders.
FDI attraction in five months tops 11 billion USD

FDI attraction in five months tops 11 billion USD

More than 11.07 billion USD in foreign direct investment (FDI) was funneled into Vietnam during January-May, up 2% against the same time last year, according to the Ministry of Industry and Trade (MoIT)’s Foreign Investment Agency.
What to do to develop Vietnam

What to do to develop Vietnam's automobile industry when implementing FTAs?

VCN - On May 24, Customs Magazine organized a discussion on the topic "Vietnam's automobile industry implements the Free Trade Agreement: In which direction to develop?"
Mobile Version