Vietnam reports $20.5 billion in FDI in first eight months
Vietnam reports $20.5 billion in FDI in first eight months
More than $20.52 billion in foreign direct investment (FDI) has been reported in Vietnam up to the end of August, an on-year increase of 7 per cent, according to the Foreign Investment Agency.
In the first eight months of 2024, a total of 2,247 new projects were granted investment registration certificates, with registered capital of over $12 billion, up 8.5 per cent in the number of projects and up 27 per cent on-year in terms of capital.
The adjusted capital for 926 ongoing projects reached $5.7 billion, up 4.9 per cent on-year in number, but up 14.8 per cent in capital. There were 2,196 capital contributions and share purchases valued at $2.81 billion, falling 7.8 per cent and 40.9 per cent, respectively.
Foreign groups invested in 18 out of the 21 economic sectors in the first seven months of the year. Among them, the manufacturing and processing industry took the lead with $14.17 billion, accounting for 69 per cent of the total, and a 7.4 per cent increase from a year ago.
Real estate followed with $3.36 billion, capturing 16.4 per cent of the total and up 77.6 per cent from a year earlier. This was followed by wholesale and retail, and professional, science and technologies, with almost $885 million and $762 million, respectively.
In terms of quantity, the manufacturing and processing industry led in the number of new projects with 34.3 per cent, as well as capital adjustment, with 66.1 per cent. Meanwhile, wholesale and retail led in the number of capital contributions and shares purchases, at 41.9 per cent.
"The strong demand for industrial spaces in Bac Ninh is driven by its strategic location, supportive government policies, well-developed infrastructure, and abundant skilled workforce. This demand is anticipated to continue,"Dang Trong Duc, CEO of KTG Industrial.
Singapore was the largest foreign investor among the 94 countries and territories investing in Vietnam during the period, with nearly $6.79 billion, or 33.1 per cent of total FDI, up 79.1 per cent in the same period last year. Hong Kong (China) ranked second with nearly $2.4 billion, accounting for 11.7 per cent of total FDI. It was followed by Japan, China, and South Korea.
Regarding quantity, China ranked first in the number of new projects with 29.5 per cent. South Korea took the lead in terms of capital adjustments as well as capital contributions and share purchases, accounting for 24.5 per cent and 26 per cent, respectively.
In the eight-month period, Bac Ninh was the largest FDI recipient with $3.47 billion, making up nearly 17 per cent of the total and almost triple the figure from last year.
Quang Ninh was second with over $1.78 billion, making up 8.7 per cent of the total and 2.3 times higher than the same period last year. Ho Chi Minh City came closely behind with $1.76 billion, capturing 8.6 per cent of the total.
To meet this growing demand, KTG Industrial has launched a new phase of its Yen Phong IIC, Bac Ninh project, with plans to welcome tenants in Quarter 1, 2025. This expansion offers modern factories, providing a prime opportunity for foreign investors to establish or expand their manufacturing operations in Vietnam.
As of August, disbursed FDI has risen by 8 per cent on-year to about $14.15 billion.
