According to the Ministry of Planning and Investment, foreign direct investment (FDI) flows into Vietnam in the first 7 months of 2022 reached over $15.41 billion, in which the processing and manufacturing industry attracts the most FDI.
FDI is mainly focused on industrial production
According to the Ministry of Planning and Investment, FDI into Vietnam in the first 7 months of 2022 reached over 15.41 billion USD. In which, processing and manufacturing industry leads with a total investment capital of over $10 billion, accounting for 64.3% of the total registered investment capital. The second place is real estate, with a total investment capital of over $3.21 billion, accounting for nearly 20.7%. Next, in turn, are the branches of professional activities in science and technology; information and communication, with a total registered capital of nearly $526.2 million and $465 million, respectively.
The data shows that industrial production, especially supporting, processing and manufacturing industries are attracting much attention from FDI investors. Foreign investment capital focused on these fields accounts for the majority and far exceeds the 2nd and the 3rd ranked fields of real estate, science and technology, information and communication. Not only attracting a huge amount of investment capital, the processing and manufacturing industry is also attractive to large corporations in the world, such as: Samsung, LG, Canon, Honda, Toyota, etc. This company continuously expands its investment in Vietnam after a period of investment and effective operation.
In 2022, Samsung plans to invest additional US$3.3 billion in Viet Nam
Structure of investment capital by country/region
As of July 20, there were 88 countries and territories investing in Vietnam. Singapore leads the list with a total investment capital of over $4.3 billion USD, using 27.7% of the total investment capital in Vietnam, mainly focus on processing industry, real estate trading and power generation. South Korea ranks second with nearly $3.26 billion, accounting for nearly 21% of total investment capital, up 48.2% over the same period.
Southeast Asian countries have also invested in Vietnam with FDI inflows reaching about $4.7 billion. Thailand has 18 new projects with total investment capital of 212.11 million USD, most of which are projects under 10 million USD, focusing on the processing and manufacturing industry. Malaysia invested 144.98 million USD in Vietnam, the projects are mainly focused in the field of education and training…
FDI inflows were concentrated in the Southeast economic region
Foreign investors have invested in 51 provinces and cities across the country in the first 7 months of 2022. Registered FDI capital into the Southeast region and the Red River Delta accounted for more than 70% of the total registered FDI capital into Vietnam. In which, Binh Duong leads with a total registered investment capital of nearly $2.6 billion, accounting for 16.7% of the total registered investment capital and up 94.9% over the same period in 2021. Ho Chi Minh City ranked second with a total investment capital of more than 2.43 billion USD, accounting for 15.6% of the total capital. Bac Ninh ranked third with a total registered investment capital of over USD 1.68 billion, accounting for 10.8% of total investment capital.
The southern key economic region is home to the largest concentration of industrial zones in the country. Accordingly, the FDI capital that foreign investors invest in this area accounts for nearly half of the total FDI attraction of the country. In addition, the FDI attraction of this area also comes from a favorable investment environment. According to statistics of the Ministry of Planning and Investment, the southern key economic regions and provinces have actively applied many attractive policies to attract FDI capital, creating a favorable investment environment for investors to speed up the project schedule.
The situation of attracting FDI in the first 7 months of 2022 with many positives has shown that the attractiveness of the Vietnam investment environment as well as the position of Vietnam on the world economic map has changed positively. This is a good sign of the economic recovery after 2 years of being affected by the Covid-19 epidemic.
Source: Financial magazine