Vietnam continues to strengthen its position as a key destination for foreign direct investment (FDI), attracting $20.52 billion in registered FDI capital in the first eight months of 2024, a 7% increase compared to the same period last year, according to the Foreign Investment Agency under the Ministry of Planning and Investment.
Strong FDI Growth Across Key Sectors
Out of the total FDI, nearly $12 billion was committed to 2,247 new projects, marking a 27% increase in value and an 8.5% rise in project numbers compared to 2023. Additionally, existing projects received $5.7 billion in supplementary capital, up 4.9% in value and 14.8% in the number of projects. Despite a 40.9% decline in foreign investment through capital contributions and share purchases, this impressive growth in direct project investments reflects Vietnam’s continued appeal to global investors.
The manufacturing and processing industry remains the backbone of FDI inflows, receiving nearly $14.17 billion, which accounts for over 69% of the total registered capital—up 7.4% from last year. Real estate ranked second, attracting $3.36 billion, followed by the wholesale and retail sector with $844.9 million.
“Vietnam’s manufacturing sector is a major draw for foreign investors, thanks to its skilled labor force, strategic location, and favorable trade policies,” said Ms. Sophie Dao, Senior Partner at GBS, an investment consulting firm in Vietnam. “With the country’s ongoing economic reforms and commitment to improving infrastructure, Vietnam is well-positioned to attract even more FDI, especially in high-tech industries and renewable energy.”
Top Investment Sources and Key Provinces
Singapore led the list of 94 countries and territories investing in Vietnam from January to August 2024, pouring over $6.79 billion into the country, a 75.5% year-on-year increase. Hong Kong (China) followed with $2.4 billion, reflecting a 43.7% surge. This highlights Vietnam’s growing attractiveness to regional investors who seek to diversify their supply chains and capitalize on Vietnam’s favorable investment climate.
On the provincial level, the northern province of Bac Ninh emerged as the largest recipient of FDI, drawing nearly $3.47 billion, representing 16.9% of the total and marking a nearly three-fold increase compared to last year. Quang Ninh and Ho Chi Minh City followed, with nearly $1.78 billion and over $1.76 billion, respectively.
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Photo: Olivier OchanineLong-Term FDI Prospects
As of August 31, 2024, Vietnam had 41,142 active FDI projects, with a total registered capital of $491.39 billion, of which approximately $311.33 billion had been disbursed. The steady growth in FDI underscores Vietnam’s commitment to creating a business-friendly environment through policy reforms, trade agreements, and infrastructure development.
Vietnam’s strategic location in Southeast Asia, coupled with its political stability and integration into global trade networks, continues to make it a magnet for international investors looking to expand in the region. With key sectors such as manufacturing, real estate, and high-tech industries leading the way, the country remains a top destination for FDI.
For global investors seeking to capitalize on Vietnam’s robust economic growth, now is the time to seize the opportunities this dynamic market offers. “Vietnam is reaching new heights as an investment hub,” Ms. Sophie Dao emphasized. “The country’s proactive approach to economic reforms, coupled with its thriving industrial base, makes it a highly attractive destination for FDI, particularly for those looking to tap into emerging sectors like renewable energy and high-tech manufacturing.”
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Source: Vietnam Insider