The Foreign Investment Agency (FIA), under the Ministry of Planning and Investment, has said that overseas funding into Vietnam is expected to soar this year.
Do Van Su, deputy director general of the FIA, said, “We estimate that foreign direct investment (FDI) could reach $36-38 billion this year, while disbursed capital could reach $22-23 billion.”
Su suggested that China's reopening will likely impact the inflow of FDI to Vietnam. “Some capital will flow into China instead of Vietnam and the other economies in the region. On the contrary, the process of shifting such capital of South Korea, Japan, and others from China will accelerate over the next few years,” said Su.
Many new projects have been approved for new or extra funding in Vietnam in recent times. Earlier this month, China’s Yadea Group signed an MoU with Tan Hung Industrial Zone to pump $100 million in a factory to manufacture and assemble electric motorcycles. The project will be implemented in the second quarter, with an expected capacity of about two million vehicles per year.
Last month, Compal Electronics, a leading Taiwanese electronics corporation, signed an agreement with Green i-Park in the northern province of Thai Binh. The manufacturer will lease more than 40 hectares of land there to build a manufacturing site.
A few months previously, Luxshare-ICT increased its investment capital by $150 million in Nghe An province, following a previous layout of $140 million for an electronic components plant. The new project is expected to officially come into operation in early 2024.
During a trip to Vietnam last year, Samsung CEO Roh Tae-Moon unveiled that the South Korean giant would make an additional investment of $3.3 billion in the country. Up to now, more than $2 billion has been realised. The remaining commitment is expected to be mobilised this year.
According to the Ministry of Planning and Investment, the total disbursed volume of FDI in 2022 was estimated to have reached a record $22.4 billion, up 13.5 per cent on-year. The total of newly registered capital, adjusted capital, capital contributions, and share purchase hit close to $27.72 billion, equivalent to 89 per cent of 2021's figures.
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By Ha Thanh