As of April 20th, 2022, the total newly registered, adjusted, and capital contribution and share purchases by foreign investors reached over USD 10.8 billion, equivalent to 88.3% over the same period last year. Although newly registered capital decreased by 56.3%, adjusted capital and capital contribution and share purchases soared by 92.5% and 74.5%, respectively. The capital generated by FDI projects was estimated at USD 5.92 billion, an increase of 7.6% over the same period in 2021.
Accumulated as of April 20th, 2022, the whole country had 34,891 valid projects with total registered capital of approximately USD 424.59 billion. The accumulated realized capital of foreign direct investment projects was estimated at over USD 257.52 billion, equaling 60.7% of total valid registered investment capital.
Details are as follows:
I. FDI INFLOWS OF VIETNAM
1. FDI attraction in the first 4 months of 2022
1.1. FDI performance:
Realized capital:
As of April 20th, 2022, FDI projects were estimated to disburse USD 5.92 billion, an increase of 7.6% compared with the same period in 2021.
Import and export performance:
Export: Export turnover of the foreign investment sector continued to increase in the first 4 months of 2022. Export (including crude oil) was estimated at USD 91.14 billion, an increase of 15.4% compared with the same period last year, accounting for 74% of export turnover. Export (excluding crude oil) was over USD 90.36 billion, an increase of 15.2% over the same period last year, accounting for 73.4% of the country’s export turnover.
Import: Imports of foreign investment sector attained approximately USD 80.39 billion, up by 18.7% over the same period last year and accounting for 65.8% of the country’s import turnover.
In the first 4 months of 2022, the FDI sector saw a trade surplus of USD 10.75 billion including crude oil and nearly USD 10 billion excluding crude oil, while the domestic sector had a trade surplus about over USD 9.79 billion.
1.2. Investment registration
As of April 20th, 2022, total newly registered, adjusted, and capital contribution and share purchases of foreign investors reached over USD 10.8 billion, equivalent to 88.3% compared to the same period in 2021. The adjusted capital and paid-in capital for share purchase surged while newly registered capital decreased over the same period last year.
Of which:
Newly registered capital: There were 454 new projects granted with investment registration certificates (a year-on-year increase of 0.7%). Total registered capital reached nearly USD 3.7 billion (a year-on-year decrease of 56.3%).
Adjusted capital: There were 323 projects registered for adjustment of investment capital (a year-on-year increase of 22.8%). Total additional registered capital reached USD 5.29 billion (a year-on-year increase of 92.5%).
Capital contribution and share purchase: There were 1,026 capital contribution and share purchases by foreign investors (a year-on-year equal of 89.1%). The total value of capital contribution and share purchases was worth USD 1.83 billion (a year-on-year increase of 74.5).
By sector:
Foreign investors had invested in 18/21 sectors in the national economic classification system, of which the processing and manufacturing led with total investment capital of nearly USD 6.2 billion, accounting for 57.2% of total registered investment capital. The real estate business ranked the second with total investment capital of over USD 2.8 billion, accounting for 26.1% of total registered investment capital. It was followed by wholesale and retail; professional, scientific and technological activities with the total registered capital of approximately USD 667.8 million and USD 357.5 million, respectively. The rest were other sectors.
Regarding the number of new projects, wholesale and retail; processing and manufacturing; professional, scientific and technological activities attract the most projects, accounting for 28.6%, 25.8% and 18.1% respectively.
By counterpart:
There were 72 countries and territories investing in Vietnam in the first 4 months of 2022. Singapore led the list with total investment capital of over USD 3.1 billion, accounting for 28.8% of total investment capital in Vietnam (a decrease of 35.8% compared with the same period in 2021); Republic of Korea ranked the second with over USD 1.82 billion, accounting for 16.9% of total investment capital (a year-on-year increase of 53.9%). With a large-scale Lego project worth over USD 1.3 billion of total investment capital, Denmark ranked the third with total registered investment capital of nearly USD 1.32 billion, accounting for 12.2% of total investment capital. Next were China, Japan, Netherlands and so on.
Regarding the number of projects, Korean investors pay the most attention, make new investment decisions and expand investment/capital contribution and share purchase in the first 4 months of 2022 (accounting for 18.7% of new projects, 33.7% of adjusted projects and 37.3% of capital contribution and share purchase).
By location:
The foreign investors had invested in 44 provinces and cities nationwide in the first 4 months of 2022. Binh Duong led the list with total registered investment capital of nearly USD 2.35 billion, accounting for 21.7% of total investment capital and 4.9 times more than the same period in 2021. Bac Ninh ranked the second with total registered investment capital of nearly USD 1.57 billion, accounting for 11.8% of total investment capital. Ho Chi Minh City ranked the third with total investment capital of nearly USD 1.28 billion, accounting for 11.8% of total investment capital (a year-on-year increase of 12.2%). Next were Thai Nguyen, Hanoi, Hai Phong and so on.
Regarding the number of new projects, foreign investors still focused on investing in big cities with convenient infrastructure such as Ho Chi Minh City and Hanoi. In which, Ho Chi Minh City led both in number of new projects (39.9%), capital contribution and share purchase (70.4%) and ranked the second in number of adjusted projects (13.6%, after Hanoi which was 16.1%).
2. Evaluation of the FDI performance in the 4 months of 2022
- The total foreign investment capital in the first 4 months of 2022 increased by 6.8% compared to the same period. With the effective support of the Government, authorities and the efforts of business community to overcome the pandemic and adapt to the new normal, enterprises continue to recover, maintain and expand production and business activities.
- Adjusted capital and capital contribution and share purchases by foreign investors increased over the same period in both quantity and investment capital. Many projects of manufacturing electronic and high-tech products have expanded large-scale capital in the first 4 months of 2022.
- Newly registered investment capital decreased sharply, reducing total investment capital in the first 4 months (down by 11.7%), but the number of have a slight increase (0.7%). Foreign investors still believed in the economy and investment environment of Vietnam, making new investment decisions and expanding their projects despite negative effects from COVID-19.
- The total investment capital in April 2022 decreased compared to first months of 2022 due to lack of large-scale projects. In addition to the number of new projects and capital contribution and share purchases slightly decreased compared to March 2022 but still increased compared to January and February 2022. Particularly, the number of projects with capital adjustment tended to increase steadily in the first months 2022. The re-opening of international flights from March 15 will have a positive impact on investment capital flows in the coming time.
- Export of the FDI sector increased in the first 4 months of 2022. The FDI sector had a trade surplus of about 10.75 billion USD (including crude oil), offsetting the trade deficit of 9.79 billion USD of domestic business sector, help the country to gain a trade surplus of approximately 960 million USD in the first 4 months of 2022.
- The Russia-Ukraine conflict is likely to have limited direct consequences on Vietnam because Russian and Ukrainian investments account for only a small proportion of total investment in Vietnam (for 0.23%). However, Vietnam can also benefit from the trend of investment shifting to Asian countries in long-term and mid-term, but it remains unclear.
3. Accumulated foreign investment as of April 20th, 2022
Accumulated as of April 20th, 2022, the whole country had 34,891 valid projects with total registered capital of over 424.59 billion USD. The accumulated realized capital of FDI projects was estimated at 257.52 billion USD, equaling 60.7% of total valid registered capital.
- By sector: Foreign investors have invested in 19/21 sectors in the national economic classification system, in which the processing and manufacturing sector accounted for the highest proportion with over 251.4 billion USD, accounting for 59.2% of total investment capital. Followed is real estate business with more than 65.1 billion USD (or 15.3% of total investment capital); electricity production and distribution with over 36.46 billion USD (or 8.6% of total investment capital).
- By counterpart: There are 139 countries having valid investment projects in. In which, RoK ranked the first with total registered capital of almost 78.7 billion USD (accounting for 18.5% of total investment capital). Singapore ranked the second with over 68.4 billion USD (or 16.1% of total investment capital). Next were Japan, Taiwan, and Hong Kong.
- By location: FDI has been present in all 63 provinces and cities nationwide, of which Ho Chi Minh City remains the leading province in attracting foreign investment with over 53.6 billion USD (accounting for 12.6% of total investment), followed by Binh Duong with 39.4 billion USD (or 9.3% of total investment capital), Hanoi with nearly 37.7 billion USD (or 8.9% of total investment capital)./.
Translated by Bao Linh
Ministry of Planning and Investment