Vietnam woos $4.29 billion in FDI capital in first two months of 2024
Vietnam woos $4.29 billion in FDI capital in first two months of 2024
An influx of foreign direct investment (FDI) into Vietnam offers positive signs for the economy, with $4.29 billion registered in the first two months of 2024.
According to the latest data from the Foreign Investment Agency (FIA), as of February 20, the total newly registered capital came from adjusted capital and capital contributions and share purchases by foreign investors, surging 38.6 per cent against the same period in 2023.
There was a sharp increase in newly registered capital, with 405 projects granted investment certificates in the first two months, up 55.2 per cent on-year and accounting for $3.6 billion of the total, more than double on-year.
Meanwhile, 159 projects registered to adjust their investment (up 19.5 per cent on-year) with total additional capital of nearly $442.1 million (down 17.4 per cent on-year). The number of capital contribution and share purchase deals was 367, down 16.6 per cent from a year earlier. The total value of these deals reached over $255.4 million, down 68 per cent on-year.
About $2.8 billion in FDI was disbursed in the first two months, expanding 9.8 per cent from the same period in 2023.
The FIA is optimistic about the investment trends, with a surge in both the number of projects and total registered capital. The decline in adjusted capital narrowed in February compared with January 2024, and a trend reversal was also observed in the number of projects with capital adjustments, which increased by 19.5 per cent in February compared with a decrease of 15.7 per cent in January. This indicates that foreign investors continue to trust in Vietnam and want to expand production and business here.
Over the past two months, foreign investors have delved into 16 out of 21 industries in the national economic classification system. Processing and manufacturing took the lead with an investment of $2.54 billion, accounting for 59.1 per cent of the total registered capital and up 16.8 per cent from a year earlier.
The real estate business ranked second, reaching near $1.41 billion, representing 32.7 per cent of total registered capital and more than tripling the figure of last year. It was followed by wholesale and retail as well as professional, scientific, and technological activities with registered capital of $125.2 million and nearly $76.4 million, respectively.
There were 48 countries and territories investing in Vietnam in the first two months of 2024. Among them, Singapore was the largest foreign investor with over $2.08 billion, accounting for 48.5 per cent of the total and more than 2.1 times higher than the same period in 2023. Hong Kong came in second with nearly $525.7 million, making up 12.2 per cent and increasing nearly five times from a year ago. Other top foreign investors included Japan and China.
Regarding the number of projects, China led in terms of number of newly registered projects (accounting for 32.3 per cent). South Korea topped the list for capital adjustments (25.8 per cent) and capital contributions and share purchases (28.9 per cent)
The foreign investors poured money into 38 provinces and cities nationwide in the first two months of 2024. Hanoi led the way with nearly $914.4 million, making up 21.3 per cent of the total and rising 24.4 times over the same period in 2023. Quang Ninh ranked second with over $471.1 million, making up 11 per cent of the total. Next were Thai Nguyen, Ba Ria-Vung Tau and Bac Ninh.
