FDI inflows rise 55.4 per cent on year

FDI inflows rise 55.4 per cent on year

In the first eight months of the year, newly registered investment doubled that of the same period last year.

According to the Foreign Investment Agency under the Ministry of Finance, total foreign direct investment (FDI) registered in Vietnam reached $40.63 billion as of August 31, up 55.4 per cent year-on-year. All three components – newly registered capital, additional capital injected into existing projects, and foreign investors’ capital contributions and share purchases – recorded increases.

In the first eight months of 2026, Vietnam granted investment licences to 2,771 new foreign-invested projects with total registered capital of $21.72 billion, representing a 9.4 per cent increase in the number of projects and a sharp 96.8 per cent rise in registered capital compared with the same period last year.

The strong growth in newly registered capital indicates that fresh investment flows into Vietnam are continuing to expand, with manufacturing and processing remaining the dominant sector.

Manufacturing and processing attracted $12.15 billion in newly registered capital, accounting for 55.9 per cent of the total. Electricity, gas, water supply and air-conditioning production and distribution ranked second with $3.13 billion, or 14.4 per cent, while other sectors accounted for $6.44 billion, or 29.7 per cent.

Including both newly registered capital and additional capital injected into projects licensed in previous years, manufacturing and processing remained the largest recipient, attracting $20.18 billion, equivalent to 59.5 per cent of total newly registered and additional capital.

Real estate business ranked second with $5.32 billion, accounting for 15.7 per cent, while other sectors attracted $8.42 billion, or 24.8 per cent.

The figures show that manufacturing continues to be the main focus of FDI attraction, while sectors such as real estate, energy and services are also making significant contributions to total registered investment.

Alongside new projects, 819 existing projects registered increases in investment capital during the first eight months, with additional capital totalling $12.21 billion, up 14.7 per cent on-year.

Foreign investors also stepped up capital contributions and share purchases. A total of 2,062 transactions were recorded, with a combined value of $6.7 billion, up 50.1 per cent from the same period last year.

Of these, 652 capital contribution and share purchase transactions increased the charter capital of Vietnamese enterprises, with a total value of $2.55 billion. The remaining 1,410 transactions involved foreign investors purchasing domestic shares without increasing companies’ charter capital, with a combined value of $4.15 billion.

By sector, professional, scientific and technical activities attracted the largest value of capital contributions and share purchases, at $2.74 billion, accounting for 40.9 per cent of the total.

Wholesale and retail trade, and repair of motor vehicles, motorcycles and scooters ranked second with $2.01 billion, or 30 per cent, while other sectors accounted for $1.95 billion, or 29.1 per cent.

Singapore was the largest source of newly registered FDI among the 73 countries and territories with newly licensed projects in Vietnam during the eight-month period, with $7.62 billion, accounting for 35.1 per cent of the total.

South Korea ranked second with $5.67 billion, or 26.1 per cent, followed by Hong Kong (China) with $2.96 billion, or 13.6 per cent; China with $1.93 billion, or 8.9 per cent; Japan with $1.42 billion, or 6.5 per cent; and the Netherlands with $424.3 million, or 2 per cent.

The figures indicate that major investors continue to come largely from partners with a long-standing investment presence in Vietnam, while capital flows from Asia remain an important source of new FDI.

Alongside the strong increase in registered capital, disbursed FDI in Vietnam also posted positive results in the first eight months of 2026.

According to the Foreign Investment Agency, disbursed FDI was estimated at $17.25 billion during the period, up 12 per cent on-year. This was the highest level of FDI disbursement recorded in the first eight months of any year over the past five years.

Manufacturing and processing continued to account for the overwhelming majority of disbursed FDI, at $14.24 billion, equivalent to 82.6 per cent of the total.

Real estate business received $1.29 billion, or 7.5 per cent, while electricity, gas, hot water, steam and air-conditioning production and distribution attracted $622.9 million, or 3.6 per cent.

The 12 per cent increase in disbursed FDI, alongside a 55.4 per cent rise in registered capital, indicates that the expansion of investment commitments is being accompanied by stronger actual capital inflows into the economy. This is particularly significant for domestic growth and production capacity.

VIR