Foreign direct investment in the processing and manufacturing sector rose by nearly 15%

DNHN - During the first eight months of 2023, FDI (foreign direct investment) in Vietnam's processing and manufacturing sector increased by nearly 15% compared to the same period in 2022.

Specifically, international investors have poured over 13 billion USD into this industry, representing 67.8% of total registered investment capital and an increase of 14.7% over the same period.

The Foreign Investment Department of the Ministry of Planning and Investment reports that as of August 20, 2023, the total newly registered capital, adjusted and contributed capital to buy shares and purchase capital contributions of foreign investors reached approximately 18.15 billion US dollars, an increase of 8.2% over the same period. The total realised capital of foreign investment projects is anticipated to reach approximately 13,1 billion USD in 2022, an increase of 1.3% over the same period in 2022.

The processing and manufacturing industry maintained its leading position by attracting nearly 13 billion USD in total investment capital, or approximately 67.8 per cent of the total registered investment capital. This also demonstrates the confidence of foreign investors in the industry's potential and favourable business climate in Vietnam. The 14.7% increase year-over-year demonstrates this market's increasing attractiveness.

Mr. Le Hoang Tai, Deputy Director of the Department of Trade Promotion, emphasised that the manufacturing industry is the foundation and driving force for the entire industry's growth. The manufacturing industry also creates attractiveness, attracting a substantial amount of FDI capital, as evidenced by the fact that FDI capital in the industry frequently accounts for the highest proportion of projects and registered capital, particularly in key industries. Telecommunications; electronics; information technology; steel production; cement; textiles; shoe leather...

Dr Phan Huu Thang, a former director of the Foreign Investment Department, stated, about attracting high-quality FDI, that improving the quality of FDI projects in Vietnam in the upcoming period is an objective requirement and should be implemented by strict implementation of the general objectives. The primary objective of technology and technology transfer criteria is to implement the strategy of attracting high-quality foreign investment. Specifically, define the criteria for high-tech application projects and high-tech product manufacturing projects... Priority must be given to technology transfer criteria when pursuing large-scale projects involving high-tech from multinational corporations. The second objective of environmental criteria is sustainable development.

In addition to the processing and manufacturing industries, the real estate industry also experienced a substantial change. Total investment capital in the real estate industry surpassed 1.76 billion US dollars, representing over 9.7 per cent of all registered investment capital. However, the data revealed a decrease of 47.2% compared to the same period of the previous year, indicating a shift of foreign investors to other high-potential regions.

On the list of investment partners, Asian nations continue to represent a disproportionate share. Singapore is the leading investor in Vietnam, contributing more than 21.2% of the total investment capital, despite a decrease of 15.4% compared to the same period in 2022. China ranks second with nearly 2.69 billion USD, a 90.8% increase over the same period, and 14.8% of total investment capital. Japan ranked third with a total registered investment capital of over USD 2.58 billion, a 73.1% increase over the same period.

Notable is that the partners' investments have spread to 54 provinces and cities nationwide. Hanoi attracted more than $2.34 billion in registered investment capital, a 2.89-fold increase over the same period last year, accounting for nearly 12.9% of total registered investment capital. City. Ho Chi Minh City is the nation's leader in terms of the number of new projects, adjusted projects, capital contributions, and share purchases, thereby contributing to the diversity and richness of the country's investment model.

The increase in FDI capital and the diverse distribution of industries, partners, and investment locations signalled Vietnam's attractiveness to foreign investors. This contributes not only to Vietnam's economic and industrial development but also to the country's technical transformation and labour productivity.

Thanh Ha