VSIP Nghe An Industrial Park. Photo: T.C
The Foreign Investment Agency, Ministry of Planning and Investment, has recently released a brief report on the situation of attracting foreign investment in Vietnam and Vietnamese investment abroad in the first five months of 2023.
From the beginning of the year until May 20, 2023, Nghe An province granted investment licenses to 7 new projects with a total registered capital of USD 320.15 million. Additionally, there were 5 adjusted projects with a total adjusted capital of USD 107.79 million.
The total registered capital, including new and adjusted projects, reached USD 427.94 million, achieving 106.4% compared to the same period last year. In comparison to the results of the first four months of 2023, Nghe An province has moved up one rank to the 9th position out of 63 provinces and cities in terms of attracting the most FDI across the country.
In terms of total registered investment capital, Hanoi takes the lead with nearly USD 1.87 billion, followed by Ho Chi Minh City with over USD 1.144 billion. The next positions are occupied by Bac Giang with USD 1.016 billion, Binh Duong with over USD 909 million, Bac Ninh with over USD 750 million, Dong Nai with over USD 678 million, Hai Phong with over USD 552 million, Long An with over USD 474 million, Nghệ An with nearly USD 428 million, and Quang Ninh with over USD 422 million.
Among the 14 provinces and cities in the North Central Coast and Central Coast region, Nghe An is the locality that attracts the most FDI, followed by Thanh Hoa with over USD 104 million, Quang Ngai with USD 43.69 million, Thua Thien Hue with USD 35.15 million, Da Nang with USD 22.26 million, Binh Dinh with USD 17.89 million, Binh Thuan with USD 6.91 million, Ha Tinh with USD 4.06 million, Ninh Thuan with USD 4 million, Khanh Hoa with USD 1.1 million. Quang Tri with USD 0.3 million, and Quang Nam with USD 0.15 million. The provinces of Quang Bình and Phu Yen have not attracted any FDI projects in the first five months of this year.
As of May 20, 2023, the total registered capital for new, adjusted projects, and capital contribution for purchasing shares and capital contributions from foreign investors in Vietnam reached nearly USD 10.86 billion.
Specifically, there are 962 new projects that have been granted investment registration certificates (an increase of 66.4% compared to the same period last year), with a total registered capital of over USD 5.26 billion (a 27.8% increase compared to the same period). Additionally, there are 485 instances of registered capital adjustment for projects (an increase of 22.8% compared to the same period), with an additional investment capital of nearly USD 2.28 billion (a 59.4% decrease compared to the same period). Furthermore, there are 1,278 transactions of capital contribution for purchasing shares and capital contributions from foreign investors (a 5.6% decrease compared to the same period), with a total contributed capital value of nearly USD 3.32 billion (a 67.2% increase compared to the same period).
Foreign investors have invested in 18 out of the total 21 national economic sectors. Among these, the processing and manufacturing industry takes the lead with a total investment capital of over USD 6.64 billion, accounting for 61.2% of the total registered investment capital but experiencing a 2.5% decrease compared to the same period.
The finance and banking sector stands at the second position with a total investment capital of over USD 1.53 billion, accounting for more than 14.1% of the total registered investment capital and experiencing an over 12-fold increase compared to the same period.
The real estate business sector and professional, scientific, and technological activities rank third and fourth, respectively, in terms of registered capital. The real estate business sector has a total registered capital of nearly USD 1.16 billion (a decrease of 61.3%), while professional, scientific, and technological activities have a registered capital of nearly USD 481 million (an increase of 28.3%). The remaining capital belong to other industries.
As of May 20, the whole country had 37,238 projects that are still in effect, with a total registered capital of nearly USD 447.67 billion. The accumulated realized capital of foreign direct investment projects is estimated at nearly USD 281.65 billion, accounting for approximately 62.9% of the total valid registered investment capital.
Foreign investors have invested in 19 out of the 21 sectors within the national economic classification system. Among these, the processing and manufacturing industry holds the highest proportion with over USD 266.9 billion (accounting for 59.6% of the total investment capital). It is followed by the real estate business sector with over USD 67.1 billion (accounting for 15% of the total investment capital), the electricity production and distribution sector with over USD 38.3 billion (accounting for nearly 8.6% of the total investment capital).
Currently, there are valid investment projects in Vietnam from 143 countries and territories around the world. Among them, South Korea ranks first with a total registered capital of nearly USD 81.6 billion (accounting for 18.2% of the total investment capital). Singapore ranks second with nearly USD 73.4 billion (accounting for 16.4% of the total investment capital). They are followed by Japan, Taiwan, and Hong Kong.
Foreign investment has been present in all 63 provinces and cities throughout Vietnam, with Ho Chi Minh City leading in attracting foreign investment with over USD 56.7 billion (accounting for 12.7% of the total investment capital). Binh Duong follows with nearly USD 40 billion (accounting for over 8.9% of the total investment capital), and Hanoi with over USD 39.2 billion (accounting for nearly 8.8% of the total investment capital). Nghe An currently ranks 30th nationwide with 137 foreign investment projects and a total investment capital of over USD 3 billion.