The upward trend in registered foreign investment flows into Vietnam over the first nine months of the year has pushed the total foreign investment capital since the beginning of the year to nearly 25 billion USD.
According to the Foreign Investment Agency under the Ministry of Planning and Investment, as of September 30, 2024, total newly registered capital, adjusted capital, and capital contributions for share purchases by foreign investors reached more than 24.78 billion USD, an increase of 11.6% compared to the same period in 2023.
Notably, in September 2024 alone, there were three major capital adjustment projects ranging from over 200 million USD to nearly 1 billion USD, bringing the total additional investment of these three projects to more than 1.5 billion USD. As a result, the capital added through adjustments from nearly 1,027 projects that increased their investment since the beginning of the year reached more than 7.64 billion USD, up 48.1% year-on-year.
In addition to increased adjusted capital, newly registered capital from 2,492 new projects over the nine-month period also rose by 11.3% compared to the same period last year, reaching more than 13.55 billion USD.
In contrast to the growth in these two capital flows, foreign investors’ capital contributions and share purchases declined significantly. Specifically, in the first nine months, there were 2,471 capital contribution transactions by foreign investors, with total value reaching nearly 3.59 billion USD, down 26.2% year-on-year.
With the continuous upward trend since the beginning of the year, the average investment scale of new projects increased from 4.68 million USD per project in September 2023 to 5.44 million USD per project in the first nine months of 2024. Similarly, the average scale of adjusted capital also rose from 5.39 million USD per adjustment in the first nine months of 2023 to 7.44 million USD per adjustment in the same period of 2024.
According to the Foreign Investment Agency, this is a positive signal showing that foreign investors continue to view Vietnam as an attractive long-term investment destination.
In September 2024 alone, the total value of newly registered capital, additional capital, and capital contributions reached the highest level since the beginning of the year, at nearly 4.26 billion USD, accounting for 17.2% of total investment in the first nine months. Additional investment capital also reached its highest level since the beginning of the year, driven by large-scale expansion projects.
At the same time, investment was concentrated in provinces and cities with strong advantages in attracting foreign investment (such as good infrastructure, stable workforce, administrative reform efforts, and active investment promotion), including Bac Ninh, Ho Chi Minh City, Quang Ninh, Ba Ria–Vung Tau, Binh Duong, Hanoi, Hai Phong, Dong Nai, Bac Giang, and Ninh Thuan. These 10 localities alone accounted for 80.1% of new projects and 72.9% of total investment capital nationwide in the first nine months.
In particular, many large-scale projects in sectors such as semiconductors, energy (including battery production, photovoltaic cells, and silicon rods), component manufacturing, and electronic products with high added value were newly invested in or had their capital expanded during the first nine months of the year.
In September, foreign investors invested in 18 out of 21 sectors of the national economy. Among them, the processing and manufacturing industry led the way with total investment capital reaching nearly 15.64 billion USD, accounting for almost 63.1% of total registered investment capital, down slightly by 0.4% compared to the same period last year.
The real estate business sector ranked second with total investment capital of more than 4.38 billion USD, accounting for nearly 17.7% of total registered capital, more than 2.2 times higher than the same period last year. It was followed by electricity production and distribution, and wholesale and retail, with registered capital of nearly 1.12 billion USD and more than 920 million USD, respectively. The remaining capital was distributed across other sectors.
In terms of project numbers, wholesale and retail led in the number of new projects (accounting for 35%) and in capital contribution and share purchase transactions (accounting for 41.7%). Meanwhile, the processing and manufacturing sector led in the number of capital contribution and share purchase transactions, accounting for 66.8%.
Currently, 98 countries and territories have invested in Vietnam in the first nine months of 2024. Singapore leads with total investment capital of more than 7.35 billion USD, accounting for nearly 29.7% of total investment capital, up 69% compared to the same period in 2023. China ranks second with more than 3.2 billion USD, accounting for 13% of total investment capital, down 4.5% year-on-year. It is followed by South Korea, Hong Kong, Japan, and others.
In terms of the number of projects, China is the leading partner in new investment projects (accounting for 29.3%), while South Korea leads in the number of capital adjustment transactions (23.9%) and capital contributions and share purchases (25.6%).
Source: Anh Nhi, VNEconomy.
