In a world rife with geopolitical conflicts that stymie economic progress, Vietnam stands out as a beacon of stability and growth. Here’s why foreign investors should seriously consider investing in Vietnam and explore this dynamic market.
Strong FDI Performance of Investing in Vietnam: May 2024
According to the Vietnam Foreign Investment Agency, in the first five months of 2024, foreign investors have poured capital into 47 provinces and cities across Vietnam. The top 10 provinces alone attracted 75.2% of the total foreign direct investment (FDI) in the country during this period. Here are the key highlights:
- Total FDI Commitments: As of May 20, 2024, the total registered capital for new, adjusted, and share purchases by foreign investors reached over USD 11.07 billion, a 2% increase compared to the same period in 2023.
- Implemented FDI: The realized FDI reached approximately USD 8.25 billion, a significant 7.8% increase year-on-year.
Noteworthy Projects and Capital Inflows of Investing in Vietnam: May 2024
- New Projects: There were 1,227 new projects granted investment registration certificates in Vietnam, marking a 27.5% increase compared to the same period last year, with total registered capital nearing USD 7.94 billion, up by 50.8%.
- Adjusted Capital: There were 440 projects with adjusted investment capital, although this saw a 9.3% decrease, the total additional registered capital amounted to over USD 2.08 billion, showing an 8.7% decline.
- Share Purchases: Foreign investors conducted 1,158 share purchase transactions, with a total contribution value of over USD 1.05 billion, reflecting a 68.2% drop.
Investing in Vietnam: May 2024 saw the largest monthly increase in adjusted capital since the beginning of the year, highlighting a growing confidence among investors.
Regional Investment Highlights of Investing in Vietnam: May 2024
- Leading Provinces: Vung Tau led the pack with total registered capital exceeding USD 1.52 billion, accounting for 13.8% of the national total, a twelvefold increase from the previous year. Following were:
- Hanoi: Nearly USD 1.14 billion, though a 39% decrease year-on-year.
- Bac Ninh: Over USD 1.06 billion.
- Ho Chi Minh City, Dong Nai, Quang Ninh: Also significant contributors.
Strategic Investment Areas of Investing in Vietnam: May 2024
Foreign investors are primarily targeting areas with strong infrastructure, stable human resources, and proactive administrative reforms. These include Vung Tau, Hanoi, Bac Ninh, Ho Chi Minh City, Dong Nai, and Quang Ninh. These top 10 localities accounted for 74.7% of new projects and 75.2% of the total FDI in the first five months of 2024.
Cumulative FDI Statistics of Investing in Vietnam: May 2024
As of May 20, 2024, Vietnam had 40,285 active projects with a total registered capital nearing USD 481.33 billion. The cumulative realized capital of these projects was estimated at around USD 305.43 billion, representing 63.5% of the total registered capital.
Foreign investments span 19 out of 21 sectors in Vietnam’s national economy:
- Manufacturing and Processing: USD 290.9 billion (60.4% of total FDI).
- Real Estate: USD 70.6 billion (14.7%).
- Electricity Production and Distribution: USD 40.8 billion (8.5%).
National Distribution of FDI of Investing in Vietnam: May 2024
Foreign investors are present in all 63 provinces and cities across Vietnam. The leading regions are:
- Ho Chi Minh City: Nearly USD 57.8 billion (12% of total FDI).
- Hanoi: Over USD 43.4 billion (9%).
- Binh Dương: More than USD 40.7 billion (8.5%).
Despite global uncertainties, Vietnam’s consistent growth and strategic reforms make it an attractive destination for foreign investors. The country’s commitment to improving infrastructure, enhancing administrative efficiency, and maintaining a stable socio-economic environment offers promising opportunities for investors looking for stable and lucrative returns.
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