FDI saw double-digit growth in Q1

March 27, 2024 | 15:49
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In the first quarter (Q1) of the year, foreign direct investment (FDI) hit $6.17 billion, an increase of 13.4 per cent on-year, and newly registered capital was up 58 per cent to reach $4.77 billion, while new-project registration was up over 23 per cent to 644, according to the Foreign Investment Agency (FIA), under the Ministry of Planning and Investment.
FDI inflows raising two digit in the first quarter

Meanwhile, adjusted registered capital contracted 22.6 per cent on-year to $934.6 million and there were 248 adjusted registered projects, up 6 per cent. The number of capital contribution and share-purchase deals was 604, down 14 per cent from a year earlier. The total value of these deals reached over $466 million, down almost 62 per cent on-year.

Investments were made across 17 out of the 21 industries in the national economic classification system. Processing and manufacturing took the lead with investments totalling $3.93 billion, accounting for 63.6 per cent of the total registered capital and a slight decrease of 1.3 per cent on-year.

Real estate ranked second, reaching over $1.58 billion, and representing 25.6 per cent of total registered capital, doubling the figure for the same period last year.

This was followed by wholesale and retail, and professional, scientific, and technological activities with registered capital of around $225 million and $190 million, respectively.

By the end of March, more than 60 countries and territories were investing in Vietnam, including Singapore, leading the pack with over $2.55 billion and accounting for 41.3 per cent of all FDI in Vietnam, an increase of more than half compared to Q1 in 2023. One of the largest Singapore-invested projects in Vietnam is the Lumi Hanoi urban area, worth $662 million. Hong Kong is in second with nearly $1.05 billion, and accounting for over 17 per cent of Vietnam's overseas investment and more than double the amount from a year ago.

The FIA said that most projects from Singapore and Hong Kong are newly registered, accounting for just under 90 and 80 per cent respectively of their investments in Q1. However, China ranks first for the sheer number of newly registered projects, and South Korea leads in additionally registered projects, capital contribution, and share-purchase deals.

Foreign investors developed projects in 42 different localities in Q1, with Hanoi receiving more than $970 million, the most of any locality, and representing almost 16 per cent of the total sum and a six-fold increase on-year. Bac Ninh province was close behind with $745 million, making up 12 per cent of the total registered capital. It was followed by Quang Ninh, Thai Nguyen, Ho Chi Minh City, and Dong Nai.

As of the end of March, there are close to 40,000 valid overseas-funded projects worth over $476 billion.

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Total newly-registered foreign investment capital, adjusted and contributed capital to buy shares and buy contributed capital of foreign investors totalled 4.29 billion USD as of February 20, up by 38.6 per cemt compared to the same period in 2023. The disbursement of FDI capital is projected at some 2.8 billion USD, reflecting a 9.8 per cemt increase against the same period last year.

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By Nguyen Huong

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