Fund inflows: Workers in action at an export garment factory in Hung Yen province. Vietnam’s manufacturing and processing sectors attracted nearly US$13bil (RM60.4bil) in foreign investment in the first eight months of this year. — Reuters
HANOI: Foreign investment inflows into Vietnam in the first eight months of this year reached nearly US$18.15bil, up 8.2% year-on-year (y-o-y), according to the Foreign Investment Agency (FIA) under the Planning and Investment Ministry.
Up to 1,924 new foreign investment projects worth over US$8.87bil were licensed during the period, up 70% y-o-y in the number of projects and 40% in the level of capital.
In addition, 830 projects had their capital adjusted, with a total amount above US$4.53bil, up 23% in number but down 40% in value y-o-y, respectively.
Foreign investors also made 2,268 transactions of capital contributions and share purchases valued at US$4.47bil in the eight months, down 6.5% in number but up 63% in capital.
The FIA added that disbursed capital stood at US$13.1bil in the period, a slight annual increase of 1.3%.
The manufacturing and processing sectors attracted the largest share of foreign investment with nearly US$13bil, representing an annual hike of 15%, or accounting for 67.8% of the total capital.
Real estate came in second with over US$1.76bil, down 47% y-o-y or making up 9.7% of the total.
The banking and finance sector was third with nearly US$1.54bil, 63.7 times higher than last year’s corresponding period.
It was followed by science and technology with US$800mil, up 29% y-o-y.
In the January to August period, there were 100 countries and territories pouring capital into Vietnam, of which Singapore topped the list with over US$3.83bil, down 15% y-o-y, or 21.2% of the total investment registered.
It was followed by China with US$2.69bil, up 91% y-o-y or 14.8% of the total, and Japan with more than US$2.58bil, surging 73% y-o-y or 14.2%.
According to the FIA, Hanoi attracted the most investment from foreign businesses as it lured realised US$2.34bil, accounting for nearly 13% of total registered investment capital and increasing 2.89 times over the same period in 2022.
The northern port city of Hai Phong came next with a total registered investment capital of more than US$2.08bil, accounting for nearly 11.5% of the total, up 72.2% y-o-y.
As of Aug 20, 2023, Vietnam had 38,084 foreign investment projects registered with a total capital outlay of US$453.26bil. The accumulated realised capital of foreign investment projects topped US$277.1bil, equating to 63.3% of the total registered investment capital.
Vietnam remained attractive in the eyes of international investors despite a wave of strategic adjustments as well as a reduction in investment activities on a global scale, according to experts.
It reflected the government’s efforts to promote cooperation, support foreign enterprises and improve the investment environment, they said, adding that the country’s participation in free trade agreements also created advantages for goods produced in Vietnam, especially when the tax rate has become a strength, helping maintain the country’s competitiveness in the race to attract foreign capital.
At the same time, several localities have been proactively clearing bottlenecks, promoting potential and investment, and creating the favourable conditions for investors to start new projects.
The government continued to focus on speeding up reforms and improving institutions and regulations related to foreign investment, actively promoting investment and focusing on large and potential partners in terms of capital and technology, such as South Korea, Japan, Europe and the United States. — Viet Nam News/ANN
