Singapore leads foreign investment in Vietnam

Hanoi – Singapore remained the biggest foreign investor in Vietnam among the 51 countries and territories investing in Vietnam in the first two months of 2023, with 978.4 million USD, making up nearly 31.6 per cent of the total registered foreign direct investment (FDI) in the country, down 42.7 per cent year-on-year, the Ministry of Planning and Investment (MPI) reported.

Workers at Apparel Far Eastern (Vietnam) Co., Ltd in the Vietnam - Singapore Industrial Park, Thuan An city, Binh Duong province. (Photo: VNA)

Taiwan (China) ranked second with nearly 407.1 million USD, accounting for 13.1 per cent of the total, and 3.85 times higher than that in the same period last year. The Netherlands came third with nearly 369 million USD, equivalent to 11.9 per cent of the total.

China led in the number of new investment projects in Vietnam, accounting for nearly 17.2 per cent. Meanwhile, the Republic of Korea (RoK) was the leader in terms of capital adjustment (21.1 per cent) and capital contributions and share purchases (30.5 per cent).

Foreign businesses have invested in 39 provinces and cities nationwide in the reviewed period.

Bac Giang led the localities in FDI attraction with 824.3 million USD, making up 26.6 per cent of the total, up 8.4 times over the same period in 2022. Ho Chi Minh City ranked second with 103 new projects worth 369.1 million USD, accounting for 11.9 per cent of the total.

The ministry said the total newly-registered capital, adjusted capital, and capital contribution and share purchase of foreign investors neared 3.1 billion USD, down 38 per cent year-on-year.

As of February 20, as many as 2.55 billion USD of foreign investment capital had been disbursed, a decrease of 4.9 per cent compared to the same period last year.

Foreign firms have poured capital into 17 out of Vietnam's 21 sectors, with the processing and manufacturing industry taking the lead with more than 2.17 billion USD, making up 70.1 per cent of the total. It is followed by real estate with 396.9 million USD, accounting for over 12.8 per cent.

Experts said to attract greater FDI projects in the coming time, Vietnam needs to fundamentally renovate all activities, from investment promotion to building and perfecting institutions and policies on foreign investment in line with development trends, approaching international standards, harmonising with international commitments, and ensuring harmony, consistency, publicity, transparency and competitiveness.

Vietnam encourages Singapore to contribute at IPs Vietnam and Singapore are furthering their ties in green infrastructure including industrial parks with smart solutions featured by concrete initiatives.

Singapore’s core inflation up 5.5 per cent in January Singapore's core inflation rose to 5.5 per cent year-on-year in January, the highest since November 2008, according to a press release by the Ministry of Trade and Industry (MTI) on February 23.

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