As of May 20th, 2022, the total newly registered, adjusted, and capital contribution and share purchases by foreign investors reached over 11.71 billion USD, equivalent to 83.7% over the same period last year. Although newly registered capital decreased by 53.4%, adjusted capital and capital contribution and share purchases soared by 45.4% and 51.6%, respectively. The capital generated by FDI projects was estimated at 7.71 billion USD, an increase of 7.8% over the same period in 2021.
Accumulated as of May 20th, 2022, the whole country had 34,989 valid projects with total registered capital of over 426.14 billion USD. The accumulated realized capital of foreign direct investment projects was estimated at 259.31 billion USD, equaling 60.9% of total valid registered investment capital.
Details are as follows:
I. FDI INFLOWS OF VIETNAM
1. FDI attraction in the first 5 months of 2022
1.1. FDI performance:
Realized capital:
As of May 20th, 2022, FDI projects were estimated to disburse 7.71 billion USD, an increase of 7.8% 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 5 months of 2022. Export (including crude oil) was estimated at over 115.29 billion USD, an increase of 17.6% compared with the same period last year, accounting for 73.7% of export turnover. Export (excluding crude oil) was over 114.32 billion USD, an increase of 17.4% over the same period last year, accounting for 73.1% of the country’s export turnover.
Import: Imports of foreign investment sector attained approximately 101.45 billion USD, up by 17.9% on-year and accounting for 65.5% of the country’s import turnover.
In the first 5 months of 2022, the FDI sector saw a trade surplus of over 13.8 billion USD including crude oil and nearly 12.9 billion USD excluding crude oil, while the domestic sector had a trade surplus about over 12.3 billion USD.
1.2. Investment registration
As of May 20th, 2022, total newly registered, adjusted, and capital contribution and share purchases of foreign investors reached over 11.71 billion USD, equivalent to 83.7% 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 578 new projects granted with investment registration certificates (a year-on-year decrease of 5.7%). Total registered capital reached nearly 4.12 billion USD (a year-on-year decrease of 53.4%).
Adjusted capital: There were 395 projects registered for adjustment of investment capital (a year-on-year increase of 15.5%). Total additional registered capital reached 5.61 billion USD (a year-on-year increase of 45.4%).
Capital contribution and share purchase: There were 1,339 capital contribution and share purchases by foreign investors (a year-on-year decrease of 5.8%). The total value of capital contribution and share purchases was worth 1.98 billion USD (a year-on-year increase of 51.6%).
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 over 6.8 billion USD, accounting for 58.2% of total registered investment capital. The real estate business ranked the second with total investment capital of approximately 3 billion USD, accounting for 25.6% of total registered investment capital. It was followed by information and communication sectors; professional, scientific and technological activities with the total registered capital of approximately 398 million USD and 374.8 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 29.6%, 25.6% and 17.5% respectively.
By counterpart:
There were 79 countries and territories investing in Vietnam in the first 5 months of 2022. Singapore led the list with total investment capital of nearly 3 billion USD, accounting for 25.3% of total investment capital in Vietnam; Republic of Korea ranked the second with over 2.06 billion USD, accounting for 17.6% of total investment capital (a year-on-year increase of 12.6%). With a large-scale Lego project worth over 1.3 billion USD of total investment capital, Denmark ranked the third with total registered investment capital of approximately 1.32 billion USD, accounting for 11.3% of total investment capital. Next were China, Japan, Hong Kong 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 5 months of 2022 (accounting for 19.4% of new projects, 33.9% of adjusted projects and 36.7% of capital contribution and share purchase).
By location:
The foreign investors had invested in 48 provinces and cities nationwide in the first 5 months of 2022. Binh Duong led the list with total registered investment capital of over 2.52 billion USD, accounting for 21.5% of total investment capital and 2.3 times more than the same period in 2021. Bac Ninh ranked the second with total registered investment capital of nearly 1.65 billion USD, accounting for 14.1% 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 slight decrease of 1.1%). 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 (40.3%), capital contribution and share purchase (67.9%) and ranked the second in number of adjusted projects (13.6%, after Hanoi which was 17%).
2. Evaluation of the FDI performance in the 5 months of 2022
- The realized investment in the first 5 months of 2022 increased by 7.8% 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 both increased over the same period. Many projects of manufacturing electronic and high-tech products have expanded large-scale capital in the first 5 months of 2022.
- Newly registered investment capital continued to decreased, reducing total investment capital in the first 5 months (down by 16.3%). The number of new projects have a slight decrease (5.7%) in the first 5 months after increasing over the first 4 months, however the number of projects with adjusted capital still increased by 15.5% over the same period. 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.
- Export of the FDI sector increased in the first 5 months of 2022. The FDI sector had a trade surplus of over 13.8 billion USD (including crude oil), offsetting the trade deficit of 12.3 billion USD of domestic business sector, help the country to gain a trade surplus of approximately 1.5 billion USD in the first 5 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 May 20th, 2022
Accumulated as of May 20th, 2022, the whole country had 34,898 valid projects with total registered capital of over 426.14 billion USD. The accumulated realized capital of FDI projects was estimated at 259.31 billion USD, equaling 60.9% 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 252 billion USD, accounting for 59.1% of total investment capital. Followed is real estate business with over 65.3 billion USD (representing 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 79.1 billion USD (accounting for 18.6% of total investment capital). Singapore ranked the second with over 68.68 billion USD (accounting for 16.1% of total investment capital). Next were Japan, Taiwan, Hong Kong and so on
- 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 54.3 billion USD (accounting for 12.7% of total investment), followed by Binh Duong with approximately 39.6 billion USD (or 9.3% of total investment capital), Hanoi with over 37.7 billion USD (representing 8.9% of total investment capital)./.
Translated by Bao Linh
Ministry of Planning and Investment