January FDI down 20 per cent on-year
Despite a three-fold increase in newly registered capital, a sharp decrease in other areas has seen foreign direct investment drop in the first month of 2023.
According to the Ministry of Planning and Investment's Foreign Investment Agency (FIA), the total foreign direct investment (FDI) for January stood at $1.69 billion, equivalent to 80.2 per cent of the total for January 2022.
Last month, while 153 projects were granted investment registration certificates with total registered capital of over $1.2 billion, equivalent to over 310 per cent on-year, adjusted capital of 89 ongoing projects reached about $305 million, equalling just 24 per cent of the total for January last year. There were 204 capital contributions and share purchases as of January 20, equivalent to $174.14 million, showing a decrease of 60.7 per cent on-year.
The country's disbursed capital was $1.35 billion in the first month, equivalent to a drop of 83.7 per cent.
The FIA census also indicated that FDI was seen in 17 out of the 21 economic sectors in January. Of those, processing and manufacturing took the lead with $718.7 million. Wholesale, retail, and vehicle repair were next with a total investment of $676.3 million, followed by logistics and construction with $82.9 million and $63.7 million, respectively.
Singapore was the top investment partner with $814 million, accounting for 48.3 per cent of the total foreign investment into the country. China came second with $265.6 million, South Korea third with $148.8 million, with Taiwan following on $139 million.
Bac Giang attracted the largest amount of FDI with $792 million, followed by Ho Chi Minh City with $179 million, Dong Nai with just over $154 million, Bac Ninh with $138 million, and Ba Ria-Vung Tau with $116 million.
The export turnover of foreign-invested enterprises reported a decrease of about 16.5 per cent on-year to roughly $19.24 billion. Import turnover was estimated at $16.3 billion, equivalent to 81 per cent on-year, while the trade surplus stood at $2.94 billion.
The almost 36,500 valid foreign-invested projects across the country currently boast a total registered capital of more than $441 billion.