Vietnam is becoming an increasingly attractive destination for foreign investors, according to recent data released by the country’s Ministry of Planning and Investment. The first eight months of this year saw a notable 8.2% increase in estimated foreign investment, reaching nearly $18.15 billion.
- Vietnam attracted an estimated $18.15 billion in foreign investment from January to August 2023, marking an 8.2% year-on-year increase.
- The country licensed 1,924 new foreign direct investment (FDI) projects, a 69.5% surge in quantity and a 39.7% increase in capital year on year.
- Operational FDI projects raised $4.54 billion in capital, a 39.7% decrease compared to the same period last year.
- Singapore and China were the leading sources of new investment projects in Vietnam.
During this period, Vietnam licensed a staggering 1,924 new FDI projects, which collectively registered capital exceeding $8.87 billion. This represents a 69.5% increase in the number of projects and a 39.7% rise in registered capital compared to the same period last year.
However, it’s not all rosy. The country also witnessed a decline in the value of operational FDI projects raising capital. Over the eight months, these projects amassed $4.54 billion, marking a 39.7% decrease in value year on year.
Despite this dip, the total disbursed FDI capital in Vietnam from January to August stood at $13.1 billion, a modest 1.3% increase year on year.
Among the countries investing in Vietnam, Singapore led the pack with $2.45 billion in registered capital. It was closely followed by China, which invested $1.88 billion.
The surge in foreign investment underscores Vietnam’s growing appeal as a stable and lucrative market in the Asia-Pacific region. The country’s efforts to streamline business regulations and offer investment incentives are clearly paying off, attracting a diverse range of investors from across the globe.
“Vietnam’s robust FDI growth, particularly in new projects, indicates investor confidence in the country’s economic prospects,” said an analyst. “However, the decline in operational FDI project value could be a point of concern and warrants closer scrutiny.”
As the Asia-Pacific region grapples with economic uncertainties and geopolitical risks, Vietnam’s rising foreign investment profile offers a glimmer of optimism. It also sets the stage for the country to play a more influential role in the regional economy, especially if it continues to attract high levels of foreign capital.