Viet Nam Attracts Over $2.36 Billion in Foreign Investment in January
Hanoi, The Gulf Observer: In January, Viet Nam witnessed a substantial increase in foreign investment, recording over $2.36 billion, marking a robust year-on-year growth of 40.2%, as reported by the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.
This noteworthy figure represents a significant improvement compared to the same month in the previous year, which experienced a 20% decline in foreign investment. The FIA outlined key statistics, revealing that more than $2 billion was allocated to 190 new projects—an increase of 70% in capital and 24.2% in the number of projects. Notably, a large-scale urban area project valued at over $662 million was a standout example among the licensed initiatives in the month.
Additionally, $235.4 million was directed towards 75 ongoing projects, reflecting a 23% decrease in capital and a 16% reduction in project numbers compared to the same period last year. Investment through capital contribution and share purchase deals accounted for over $116.5 million, registering a 33% decrease compared to January 2023.
Foreign investment disbursement also experienced a positive trend, witnessing a 10% increase year-on-year, reaching $1.48 billion, according to the FIA.
Singapore led the list of countries contributing to Viet Nam’s foreign investment, with over $1.4 billion, representing 59.5% of the total inflows—a remarkable 73% year-on-year increase. Japan secured the second position, contributing nearly $297 million, accounting for 12.6% of the total and marking a sevenfold increase compared to the same month in the previous year.
China ranked first in the number of new projects, constituting nearly 19%, while South Korea took the lead in both capital-added projects (26.7%) and investment through capital contribution and share purchase deals (25.3%).
Among the 35 localities that attracted foreign investment in January, the capital city claimed the top spot, receiving $867 million, equivalent to 36.7% of the total. Bà Rịa-Vũng Tàu, a southern province, secured the second position with $282 million (11.9%), followed by the northern provinces of Bac Giang and Bac Ninh, along with the southern province of Dong Nai.
As of January 1, 2024, Viet Nam hosted 39,377 valid foreign-invested projects, with a total registered capital of nearly $471.9 billion. Approximately 63.3% of this sum ($298.66 billion) had been disbursed.
Deputy Minister of Planning and Investment Tran Quoc Phương highlighted that Viet Nam’s position and role in global FDI flows have continued to improve. The country has been actively promoting innovation, digital economy, green growth, and new economic sectors to capitalize on opportunities arising from strategic competition among major countries, shifts in global foreign investment flows, free trade agreements, and international partnerships. Despite being a bright spot in foreign investment attraction globally, challenges persist, including weak linkages between foreign-invested and domestic enterprises, slow technology transfer, and a relatively low position in global value chains.
