Contrary to concerns and declines in the first months of the year, Vietnam's foreign investment attraction in 2023 is at a high growth rate compared to last year.

According to Vietnamese Foreign Investment Agency, as of 20/12/2023, total foreign investment capital registered in Vietnam reached nearly USD 36.61 billion, an increase of 32.1% compared to the previous year. Realized capital of foreign investment projects is estimated to reach about USD 23.18 billion, an increase of 3.5% compared to the year 2022 and is considered a record disbursement level ever.

Also stated by the Foreign Investment Agency, out of the total registered capital of more than USD 36.6 billion, the newly registered capital reached nearly USD 20.19 billion, an increase of 62.2% over the same period last year. The number of newly registered projects reached 3,188 projects, an increase of 56.6%. Therefore, it is noted that both new projects and newly registered capital increased sharply in the year 2023.

The latest billion USD foreign investment project is Thai Binh LNG Gas Power, with a total captial of nearly USD 2 billion. (Photo: baodautu.vn)

It is also recorded that in 2023, there are 1,262 projects registering to adjust investment capital (an increase of 14% over the same period last year), with a total additional investment capital of more than USD 7.88 billion (decreased by 22,1% over the same period in 2022).

Meanwhile, investment capital through capital contribution and share purchase reached more than USD 8.5 billion, an increase of 65.7% over the same period. Thanks to the increased scale of capital contribution, although the number of capital contribution and share purchase transactions in 2023 only reached 3,451, a decrease of 3.2% over the same period last year, the capital contribution increased overall.

Foreign Investment Department assessed that the increase in disbursed capital in 2023 showed the companionship of the Government and the Prime Minister; close coordination with ministries, branches and localities in proactively approaching, grasping and removing bottlenecks and legal barriers that are hindering investment and business activities of enterprises that has been effective and brought about positive results, helping businesses stabilize, improve their operation and continue to invest in Vietnam. Meanwhile, the sharp increase in newly signed capital continues to show that Vietnam is a safe and attractive destination for foreign investors.

Besides, foreign investment capital continues to focus on provinces and cities that have many advantages in attracting foreign investment such as good infrastructure, stable human resources, and efforts to reform of administrative procedures and dynamism in investment promotion. Some localities can be listed 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 localities alone account for 78.6% of new projects and 74.4% of the country's foreign invested capital in 2023.

From another perspective, according to the Foreign Investment Agency, although adjusted investment capital still decreased compared to the figure last year, the reduction level has improved. Furthermore, despite the decrease in capital, the number of capitals adjusted projects still maintained an increase over the same period (a rise of 14%). This affirms investors' confidence in Vietnam's investment environment and continues to make decisions to expand existing projects.

A report from the Foreign Investment Agency shows that in 2023, foreign businesses invested in 18 out of 21 national economic sectors. Of which, the processing and manufacturing industry leads with a total investment capital of more than USD 23.5 billion, accounting for 64.2% of total registered investment capital and an increase of 39.9% over the same period last year. Investment in real estate ranked second with a total capital of nearly USD 4.67 billion, accounting for more than 12.7% of total registered investment capital, an increase of 4.8% over the same period in 2022.

Electricity production and distribution and finance - banking ranked the 3rd and 4th with total registered capital of more than USD 2.37 billion (an increase of 4.9%) and nearly USD 1.56 billion (an increase of nearly 27 times), respectively.

Developments in foreign investment attraction by month in 2023. (Photo: baodautu.vn)

In terms of partners, in 2023, there will be 111 countries and territories investing in Vietnam. Which, Singapore leads with a total investment capital of more than USD 6.8 billion, accounting for 18.6% of total investment capital in Vietnam, an increase of 5.4% over the same period in 2022. Japan ranked second with nearly USD 6.57 billion, accounting for more than 17.9% of total investment capital, an increase of 37.3% over the same period in 2022. Hong Kong ranked third with a total registered investment capital of more than USD 4.68 billion, accounting for nearly 12.8% of total investment capital.

In terms of number of projects, China leads in the number of new projects (accounting for 22.2%). Korea leads in the number of capital adjustments (accounting for 25.9%) and capital contributions and share purchases (accounting for 27.8%).

In 2023, Ho Chi Minh City will become the champion in attracting foreign investment, with a total registered investment capital of more than USD 5.85 billion, accounting for nearly 16% of the total registered investment capital, an increase of 48.5% over the same period in 2022. However, investment capital in Ho Chi Minh City is mainly in the form of capital contribution and share purchase, which accounts for nearly 73.3% of this City’s total investment in 2023.

Meanwhile, Hai Phong ranked second with a total registered investment capital of more than USD 3.26 billion, accounting for 8.9% of the total investment capital of the country, an increase of 66.2% over the same period in 2022.

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