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FDI INFLOWS TO VIETNAM REACH ALMOST $1.7 BILLION IN JANUARY
According to the General Statistics Office (GSO), Vietnam lured $1.69 billion in foreign direct investment (FDI) as of January 20 this year, a year-on-year decrease of 19.8 per cent.
There were 153 newly-registered projects totalling $1.2 billion, up 48.5 per cent in quantity and 3.1 times in value against last year's January.
About $651.9 million of FDI capital was poured into the fields of wholesale, retail, and repair of automobiles and motorised vehicles, accounting for 54.1 per cent of the total registered sum. Meanwhile, the processing and manufacturing industry attracted $351.2 million, making up 29.1 per cent of the total registered capital.
According to the GSO, 28 foreign countries and territories invested in Vietnam in January. Singapore took the lead with $767.6 million, accounting for 63.7 per cent of the total newly registered capital. China came in second with $198.2 million, making up for 16.4 per cent of the total sum.
Meanwhile, Vietnamese investors have received investment certificates for three project overseas with the total capital of $126.7 million, up by 3.4 times against the same month in 2022.
In 2022, Vietnam lured over $22.4 billion in FDI capital. The country is anticipated to draw $36–38 billion in FDI capital in 2023, according to the Foreign Investment Agency under the Ministry of Planning and Investment.
There are favourable indicators for Vietnam to facilitate FDI attraction in 2023. Beside positive economic growth in 2022, local authorities have made constant efforts in improving the investment climate, building trust with investors, and effectively exploiting free trade agreements.
A report by HSBC also points out that Vietnam's FDI attraction will benefit from China’s move to reopen borders in 2023. China has invested heavily in consumer electronics sector in Vietnam. High-profile examples include Apple’s plans to relocate the MacBook supply chain to Vietnam.
On the contrary, the FDI flows from the South Korea, Japan, and Taiwan (China) into Vietnam will be accelerated. This trend is expected to continue into 2025 as Vietnam will be a preferred investment destination for these Asian investors.
Source: VIR
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