FDI disbursement recovering in H1

A mobile phone production line of Samsung Vietnam in the northern province of Bac Ninh. Photo: VNA

Thus, after a continuous decrease in the first five months, foreign direct investment (FDI) disbursement has started to rise slightly, which is also a positive sign amid a difficult landscape.

However, the registered FDI was still decreasing. As of June 20, the total registered investment was $13.43 billion, equivalent to 95.7 per cent on-year, a decrease of 4.3 per cent, which is a smaller reduction on-month.

A total of 1,293 new projects were granted investment registration certificates in the first half, with the total registered capital of over $6.49 billion, up 71.9 per cent in the number of projects and up 31.3 per cent on-year in terms of capital.

The adjusted capital of almost 632 ongoing projects stood at about $2.93 billion, up 29.8 per cent on-year in number but down 57.1 per cent in capital terms.

There were approximately 1,594 capital contributions and share purchases as of June 20, equivalent to $4 billion, showing an increase of 76.8 per cent on-year.

The FIA said that the newly registered capital has been increasing more sharply in both values and project numbers as compared to previous months.

"That means small- and medium- sized investors are paying more attention to Vietnam, and appreciating the nation's investment climate," noted an FIA report.

The FIA report also indicated that FDI was seen in 18 out of the 21 economic sectors in the first half. Of those, processing and manufacturing took the lead with $8.46 billion, capturing 63 per cent of the total, but saw a 4.2 per cent drop compared to the same period in 2022.

Banking and finance ranked second with $1.53 billion, making up 11.4 per cent of the total. This was followed by real estate, and professional, science and technologies with $1.53 billion and $630.6 million, respectively.

Singapore was the top foreign investor in Vietnam with close to $3 billion, accounting for 22.3 per cent of FDI into the country in the first half of 2023, but representing a decrease of over 27.5 per cent on-year.

Japan came second with $2.21 billion and China third with $1.95 billion. They were followed by South Korea, Hong Kong, and Taiwan.

Foreign-invested projects still choose cities and provinces that have more advantageous infrastructure development, human resources, and clear administrative procedures, such as Hanoi, Ho Chi Minh City, and Bac Giang.

Vietnam tasked with gaining FDI edge Boosting both the quality and quantity of foreign investment is being called an imperative for Vietnam as it attempts to improve on 2023 results so far.

Vietnam secures 10.86 billion USD in FDI in first five months Total foreign direct investment (FDI) in Vietnam, including new and additional investment and contributions for share purchases by foreign investors, reached nearly 10.86 billion USD from January to May 20, according to the Ministry of Planning and Investment.

LG Innotek in Haiphong invests further $1 billion LG Innotek, a producer of core components for mobile devices, automotive displays, and semiconductors, will invest $1 billion into building a new manufacturing facility for advanced smartphone camera modules and other optical products in the northern port city of Haiphong.