Foreign Investment Situation in Vietnam in 2023
As of December 20, 2023, the total registered capital for new, adjusted, and contributed capital shares by foreign investors reached nearly 36.61 billion USD, an increase of 32.1% compared to the same period last year. The capital realized from foreign investment projects is estimated at around 23.18 billion USD, up 3.5% compared to 2022.
As of December 20, 2023, the country has 39,140 active projects with a total registered capital of 468.9 billion USD. The cumulative realized capital of foreign investment projects is estimated at around 297.2 billion USD, accounting for 63.4% of the total registered investment capital still in effect.
- ABOUT FOREIGN INVESTMENT IN VIETNAM
- Foreign Investment Attraction in 2023
As of December 20, 2023, the total registered capital for new, adjusted, and contributed capital shares by foreign investors exceeded 36.6 billion USD, marking a 32.1% increase compared to the same period last year. Besides the decline in adjusted capital, new investment and capital contributions showed a significant increase compared to the same period. Specifically:
New Investment: There were 3,188 new projects granted investment certificates (up 56.6% compared to the same period), with a total registered capital of nearly 20.19 billion USD (up 62.2% year-on-year).
Adjusted Capital: A total of 1,262 projects registered for capital adjustment (up 14% compared to the same period), with additional investment capital exceeding 7.88 billion USD (down 22.1% year-on-year).
Capital Contributions and Share Purchases: There were 3,451 capital contribution and share purchase transactions by foreign investors (down 3.2% compared to the same period), with a total contribution value exceeding 8.5 billion USD (up 65.7% year-on-year).
By Sector:
Foreign investors have invested in 18 out of 21 sectors of the national economy. The processing and manufacturing industry led with total investment capital exceeding 23.5 billion USD, accounting for 64.2% of the total registered investment capital and increasing by 39.9% compared to the same period. The real estate sector ranked second with nearly 4.67 billion USD, making up over 12.7% of the total registered investment, an increase of 4.8% year-on-year. The electricity production and distribution sector, as well as the banking and finance sector, ranked third and fourth with registered capital exceeding 2.37 billion USD (up 4.9%) and nearly 1.56 billion USD (up nearly 27 times), respectively. The remaining sectors are others.
In terms of new project numbers, the processing and manufacturing industry also led with the highest number of new projects (33.7%) and capital adjustments (54.8%). Wholesale and retail trade led in the number of capital contribution and share purchase transactions (41.5%).
Foreign Investment Structure by Sector in 2023
By Investment Partner:
In 2023, 111 countries and territories invested in Vietnam. Singapore led with total investment exceeding 6.8 billion USD, accounting for 18.6% of total investment in Vietnam, an increase of 5.4% compared to the same period in 2022. Japan ranked second with nearly 6.57 billion USD, accounting for over 17.9% of total investment, up 37.3% year-on-year. Hong Kong was third with total registered investment exceeding 4.68 billion USD, accounting for nearly 12.8% of total investment, which was 2.1 times the amount from the same period. Following were China, South Korea, Taiwan, etc.
In terms of the number of projects, China led in the number of new projects (22.2%). South Korea led in the number of capital adjustments (25.9%) and capital contribution transactions (27.8%).
Foreign Investment Structure by Partner in 2023
By Investment Location:
In 2023, foreign investors invested in 56 provinces and cities across the country. Ho Chi Minh City led in attracting investment with total registered capital exceeding 5.85 billion USD, accounting for nearly 16% of total registered investment, up 48.5% compared to the same period in 2022. Hai Phong ranked second with total registered capital exceeding 3.26 billion USD, accounting for 8.9% of total investment nationwide, up 66.2% year-on-year. Following were Quang Ninh, Bac Giang, Thai Binh, etc.
In terms of the number of projects, Ho Chi Minh City led the country in the number of new projects (37.7%), project adjustments (23.5%), and capital contribution transactions (67.1%).
Ho Chi Minh City was the leading area in the number of new projects.
Foreign Investment Structure by Location in 2023
- Observations on Foreign Investment in 2023.
- The realized capital from foreign investment projects increased compared to the same period (up 3.5%). The government’s support, the Prime Minister’s involvement, and close cooperation with ministries, sectors, and localities in proactively addressing and removing bottlenecks and legal barriers hindering business investment activities have helped stabilize and improve enterprises’ business operations.
- The total registered investment capital saw a significant increase, reaching the highest growth rate since the beginning of the year, up 32.1% compared to the same period and up 17.3 percentage points compared to the previous 11 months.
- New investment capital increased significantly both in terms of investment amounts (up 62.2%) and the number of new investment projects (up 56.6%), concentrated in provinces and cities with favorable conditions for attracting foreign investment (good infrastructure, stable human resources, efforts in administrative reform, and active investment promotion), such as Ho Chi Minh City, Hai Phong, Quang Ninh, Bac Giang, Thai Binh, Hanoi, Bac Ninh, Nghe An, Binh Duong, and Dong Nai. These ten localities accounted for up to 78.6% of new projects and 74.4% of total capital nationwide in 2023.
- Asian investors and traditional investment partners still accounted for a large proportion of total investment capital (Singapore, Japan, Hong Kong, South Korea, China, Taiwan). These six partners alone accounted for more than 81.4% of total investment capital in the country in 2023.
Japan remains a traditional investor among the top investors in Vietnam.
[Source: Ministry of Planning and Investment]
