Vietnam continues to stand out as an appealing business destination, experiencing a significant surge in foreign direct investment (FDI) throughout 2023.
According to data from the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, FDI registrations reached nearly $36.61 billion by November 20, marking a remarkable 32.1% year-on-year increase. Realized FDI also witnessed a 3.5% rise compared to the previous year, reaching a record high of $23.18 billion.
Within this impressive performance, newly registered capital saw an impressive 62.2% year-on-year surge, totaling $20.19 billion, with the number of newly registered projects increasing by 56.6% to 3,188.
There were 1,262 projects (up 14% year-on-year) contributing investment capital, resulting in a total additional capital of $7.88 billion, a slight decrease of 22.1%.
The value of capital contribution and share purchase deals soared by 65.7% to $8.5 billion, with approximately 3,450 such cases in 2023, a 3.2% decrease year-on-year.
The top 10 FDI recipients in 2023 were Ho Chi Minh City, Haiphong, Quang Ninh, Bac Giang, Thai Binh, Hanoi, Bac Ninh, Nghe An, Binh Duong, and Dong Nai, accounting for 78.6% of new foreign-led projects and 74.4% of the total FDI capital.
The FIA highlighted that foreign investors diversified their investments across 18 out of 21 industries in the national economic classification system. Processing and manufacturing received the highest capital, surpassing $23.5 billion, representing 64.2% of the total registered capital and a substantial 39.9% increase year-on-year.
The real estate sector closely followed with an investment capital of nearly $4.67 billion, constituting 12.7% of the total registered capital and experiencing a 4.8% increase year-on-year. This was trailed by the power production and distribution, and finance-banking industries, with registered capital of over $2.37 billion and nearly $1.56 billion, respectively.
In 2023, investments came from 111 countries and territories. Singapore led the pack with over $6.8 billion, accounting for 18.6% of the total in Vietnam, marking a 5.4% increase from the previous year. Japan secured the second spot with nearly $6.57 billion, representing 17.9% and a 37.3% surge year-on-year. Hong Kong claimed the third position with over $4.68 billion, more than doubling from the same period in 2022.
In terms of quantity, Chinese investors took the lead in the number of new projects, accounting for 22.2%. South Korea led in cases of capital adjustment (25.9%) as well as capital contribution and share purchase (27.8%).