VIETNAM SEES STEADY FDI DISBURSEMENT BUT SLOWER EXPANSION IN JANUARY

Workers are seen at a factory in HCMC - PHOTO: ARCHIVES

HCMC – Foreign direct investment (FDI) disbursement in Vietnam rose in January, while newly registered capital fell sharply, pointing to stable project implementation but slower investment expansion.

Data from the Ministry of Finance showed that January FDI disbursement increased 11.26% year-on-year to US$1.68 billion, reflecting continued execution and expansion of existing foreign-invested projects.

In contrast, total registered FDI declined 40.58% year-on-year to nearly US$2.58 billion, down from over US$4.33 billion in January 2025. The drop was largely due to a steep fall in additional capital injected into ongoing projects.

Newly licensed projects attracted around US$1.49 billion across 349 projects, rising 15.71% in value and 23.76% in number compared with the same period last year. However, adjusted capital plunged 67.4% to US$888.5 million, while capital contributions and share purchases declined 38.57% to US$198.3 million.

The Ministry of Finance attributed the overall decline in registered capital to a high comparison base last year, when several large projects recorded exceptional capital increases, and noted that new investment inflows continued to rise.

Manufacturing remained the largest recipient of registered FDI, drawing over US$1.96 billion, or 76.28% of the total. Real estate followed with US$249.6 million, while information and communications received US$134.2 million, and wholesale and retail trade US$124.2 million.

By source, Singapore led with US$1.07 billion, accounting for 41.54% of total registered capital. South Korea, China, and Japan followed. The four Asian economies together contributed about 86% of total FDI commitments in January.

Source: The Saigon Times