Want to be in the loop?
subscribe to
our notification
Business News
DOWNWARD TREND IN FDI PERSISTS
According to the Ministry of Planning and Investment's Foreign Investment Agency (FIA), foreign direct investment (FDI) stood at $5.45 billion in the first quarter of 2023, equivalent to just 61 per cent on-year. The reason is said to be the lack of billion-dollar projects, with the $1.32 billion Lego investment making up 41 per cent of FDI in the first quarter last year.
Over 520 new projects were granted investment registration certificates in the same period with the total registered capital of over $3 billion, down 5.9 per cent on-year. The adjusted capital of almost 230 ongoing projects stood at about $1.2 billion, down 70 per cent on-year. There were approximately 600 capital contributions and share purchases as of March 20, equivalent to $1.25 billion, showing a decrease of over 23 per cent for the same period last year.
In addition to the decrease in FDI, the country's disbursed capital also saw a slight decline of 2.2 per cent to $4.3 billion.
The FIA census also indicated that FDI was seen in 17 out of the 21 economic sectors in the first quarter. Of those, processing and manufacturing took the lead with $4 billion, capturing 73 per cent of total FDI, but saw a 25 per cent drop compared to the same period in 2022. Real estate ranked second with $766 million, making up 14 per cent of the total, but witnessed a decrease of over 71 per cent on-year. This was followed by wholesale and retail, and logistics and warehouses, with $276 million and $151 million respectively.
Singapore was the top foreign investor in Vietnam with close to $1.7 billion, accounting for 31 per cent of FDI into the country in the first quarter, but representing a decrease of over 26 per cent on-year. China came second with $552 million and Taiwan third with $477 million, followed by South Korea, Hong Kong, and the Netherlands.
Foreign-invested projects still choose cities and provinces that have more advantageous infrastructural development, human resources, and clear administrative procedures, like Bac Giang, Dong Nai, Bac Ninh, Ho Chi Minh City, and Haiphong.
Source: VIR
Related News
SPECIAL INVESTMENT PROCEDURE: A GAME CHANGER FOR HIGH-TECH PROJECTS IN VIET NAM
Viet Nam is poised for a regulatory shift with the upcoming implementation of a special investment procedure starting earlier next year. Starting from January 15, 2025, investors will be able to enroll for investment under special procedures as outlined in the Draft Decree detailing the Investment Law.
CLEAR LEGAL FRAMEWORK NEEDED TO UNLOCK DIGITAL ASSET POTENTIAL
The past decade has seen remarkable advancements in technology worldwide, particularly in digital assets such as blockchain, cryptocurrencies, asset tokenization and decentralized finance (DeFi). Once unfamiliar, digital assets have now become integral to the global financial system. Leading nations in this field not only to drive innovation but also establish a strategic edge in the global economy.
VIETNAM TO RANK AMONG TOP 15 LARGEST ECONOMIES IN ASIA BY 2025
Based on data from the International Monetary Fund (IMF), Seasia Stats predicts that Vietnam’s economy will reach $506 billion in 2025, earning it a place in the top 15 largest economies in Asia. “Vietnam is rapidly developing thanks to its manufacturing boom and strong foreign investment inflows,” Seasia Stats noted.
PM ORDERS SWIFT RESOLUTION OF CHALLENGES FOR RENEWABLE ENERGY PROJECTS
Prime Minister Phạm Minh Chính has laid stress on the need to complete the resolution of obstacles for renewable projects by February 2025 to prevent wastefulness, contributing to ensuring electricity for development.
VIETNAM'S GDP GROWTH WILL LEAD THE REGION IN 2025
A report published by Oxford Economics on December 16 noted that Vietnam's economy has been the region's outperformer in 2024, with full-year growth likely at 6.7 per cent on-year. The country is expected to continue to outperform its peers next year, growing by 6.5 per cent.
HANOI'S ECONOMY CONTINUES TO SUSTAIN GROWTH
Speaking at the opening session of the 20th meeting of Hanoi People’s Council on December 4, Deputy Chairman of Hanoi People’s Committee Ha Minh Hai reported that the capital’s economy has maintained high growth, with regional GDP rising by 6.12 per cent in the first nine months of the year, and expected to exceed 6.5 per cent for the full year.