According to the Ministry of Planning and Investment, as of December 20, 2023, the total FDI registered in Vietnam reached nearly USD 36.6 billion (including newly registered capital, adjusted capital, and capital contribution and share purchase by foreign investors), a 32.1% increase from the previous year.

Newly registered capital surges by 62.2%

Newly registered capital saw 3,188 projects granted licenses, with a registered capital of USD 20.19 billion, a 56.6% increase in projects and a remarkable 62.2% surge in registered capital compared to the previous year.

Among these, the processing and manufacturing industry secured the largest newly approved FDI with a registered capital of USD 15.85 billion, constituting 78.5% of the total newly registered capital; the electricity, gas, water production and distribution sector achieved USD 2.09 billion, capturing 10.4%; and other sectors combined for USD 2.24 billion, representing 11.12%.

Of the 72 countries and territories with newly licensed investment projects in Vietnam in 2023, Singapore emerged as the largest investor with USD 3.77 billion, accounting for 18.7% of the total newly registered capital. It was followed by China with USD 3.54 billion (17.6%), Hong Kong (China) with USD 3.41 billion (16.9%), Japan with USD 2.86 billion (14.2%), Taiwan (China) with USD 2.25 billion (11.1%), and South Korea with USD 1.84 billion (9.1%).

Adjusted registered capital involves 1,262 projects that have been licensed in previous years, adjusting their investment capital upwards by an additional USD 7.88 billion, a 22.1% decrease from the previous year.

When considering both newly registered and adjusted capital of previously licensed projects, FDI in the processing and manufacturing industry reached USD 21.97 billion, representing 78.3% of the total newly registered capital and an additional increase; electricity, gas, water production and distribution achieved USD 2.27 billion, accounting for 8.1%; and other sectors amounted to USD 3.8 billion, making up 13.6%.

Capital contribution and share purchase by foreign investors involved 3,451 instances with a total value of USD 8.54 billion, a 65.7% increase from the previous year. This included 1,349 instances contributing capital and purchasing shares to increase the charter capital of businesses, amounting to USD 4.05 billion, and 2,102 instances where foreign investors acquired shares domestically without increasing the charter capital, valued at USD 4.49 billion.

In terms of investment sectors, capital invested in real estate business activities reached USD 3.16 billion, accounting for 36.9% of the capital contribution and share purchase; financial, banking, and insurance activities attained USD 1.55 billion, constituting 18.1%; and other sectors reached USD 3.84 billion, making up 44.9%.

FDI realization in processing and manufacturing constitutes 82.3%

FDI realized in Vietnam in 2023 reached USD 23.18 billion, a 3.5% increase from the previous year, marking the highest realization in the last 5 years. In this, the processing and manufacturing industry garnered USD 19.08 billion, capturing 82.3% of the total FDI realization; production, distribution of electricity, gas, steam, and air conditioning achieved USD 1.37 billion, accounting for 5.9%; and real estate business activities amounted to USD 1.15 billion, representing 4.9%.

FDI Continues to Concentrate

Foreign Direct Investment Continues to Concentrate on Provinces and Cities with Advantages in Attracting Foreign Investment, such as Ho Chi Minh City, Hai Phong, Quang Ninh, Bac Giang, Thai Binh, Hanoi, Bac Ninh, Nghe An, Binh Duong, Dong Nai. These 10 provinces alone accounted for a staggering 78.6% of new projects and 74.4% of the total investment in the country in 2023.

Vietnamese outward investment

Conversely, Vietnamese outward investment in 2023 saw 124 newly certified projects with a total capital from Vietnam of USD 282.7 million, a 33.7% decrease from the previous year. Vietnam's outward investments were received by 26 countries and territories. Canada led with USD 150.3 million, representing 35.7% of the total outbound investment; Singapore followed with USD 122.6 million (29.1%); Laos with USD 116.7 million (27.7%); Cuba with USD 11.8 million (2.8%); and Israel with USD 6.1 million (1.4%).

Source: Tap chi Cong thuong and others

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