Vietnam continues to shine as an attractive business destination with foreign direct investment (FDI) surging in 2023.
According to data by the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, nearly $36.61 billion in FDI was registered as of December 20, up 32.1 per cent on-year. Realised FDI rose 3.5 per cent from a year ago to hit $23.18 billion, the highest record level.
Among the headline figure, newly registered capital surged 62.2 per cent on-year to reach $20.19 billion. The number of newly registered projects was 3,188, up 56.6 per cent.
There were 1,262 projects (up 14 per cent on-year) bringing in investment capital with the total additional capital of $7.88 (down 22.1 per cent).
The value of capital contribution and share purchase deals climbed by 65.7 per cent to $8.5 billion. There were only around 3,450 cases of capital contribution and share purchase in 2023, down 3.2 per cent on-year.
The top 10 FDI recipients were Ho Chi Minh City, Haiphong, Quang Ninh, Bac Giang, Thai Binh, Hanoi, Bac Ninh, Nghe An, Binh Duong, and Dong Nai. These 10 localities account for 78.6 per cent of new foreign-led projects and 74.4 per cent of the total FDI capital in 2023.
The FIA said that foreign investors have made investments across 18 out of 21 industries in the national economic classification system. Processing and manufacturing received the most capital, reaching over $23.5 billion, representing 64.2 per cent of total registered capital and up 39.9 per cent on-year.
The real estate business was closely behind with investment capital of nearly $4.67 billion, accounting for 12.7 per cent of total registered capital and rising 4.8 per cent on-year. It was followed by the power production and distribution and finance-banking industries, with registered capital of over $2.37 billion and nearly $1.56 billion, respectively.
There were 111 countries and territories investing in Vietnam in 2023. Among them, Singapore took the lead with over $6.8 billion, accounting for 18.6 per cent in Vietnam and up 5.4 per cent from a year earlier.
Japan came in second with nearly $6.57 billion, accounting for 17.9 per cent and up 37.3 per cent on-year. Hong Kong ranked third with over $4.68 billion, over double than the same period in 2022.
In terms of quantity, Chinese investors took the lead in the number of new projects, accounting for 22.2 per cent. South Korea topped the cases of capital adjustment (making up 25.9 per cent) as well as capital contribution and share purchase (27.8 per cent)./.
