As of July 20, 2022, the total newly registered capital, adjusted and contributed capital to buy shares and buy contributed capital of foreign investors reached over 15.41 billion USD, equivalent to 92.9% over the same period in 2021. Although newly registered capital has not fully recovered after the interruption of anti-pandemic measures in 2021, adjusted capital, capital contribution and share purchases have continued to increase sharply at 59.3% and 25.7% respectively. The capital generated by FDI projects was estimated at 11.57 billion USD, an increase of 10.2% over the same period last year.

Accumulated to July 20, 2022, the whole country has 35,367 valid projects with a total registered capital of over 429.04 billion USD. The accumulated realised capital of foreign investment projects is estimated at nearly 263.17 billion USD, equaling 61.3% of the total valid registered investment capital.

Details are as follows:

I. FDI INFLOWS OF VIETNAM

1. FDI attraction in the first seven months of 2022

1.1. FDI performance:

Realized capital:

As of July 20, 2022, FDI projects were estimated to disburse 11.57 billion USD, an increase of 10.2% compared to the same period in 2021 and 1.3 percentage point compared to the first six months.

Import and export performance:

Export: Export turnover of the foreign investment sector continued to increase in the first seven months of 2022, higher than the increase rate in the first six months. Export (including crude oil) was estimated at over 160.36 billion USD, an increase of 16.5% compared to the same period last year, accounting for 73.7% of export turnover. Export (excluding crude oil) was nearly 158.9 billion USD, an increase of 16.2% over the same period, accounting for 73% of the country’s export turnover.

Import: Imports of foreign investment sector attained over 140.73 billion USD, up 14.7% compared to the same period and accounting for 64.7% of the country’s import turnover.

In the first seven months of 2022, the FDI sector saw a trade surplus of over 19.64 billion USD including crude oil and 18.17 billion USD excluding crude oil, while the domestic sector had a trade surplus about 19.4 billion USD.

1.2. Investment registration

As of July 20, 2022, the total newly registered capital, adjusted capital and capital contributions and share purchases of foreign investors reached over 15.54 billion USD, as much as 92.9% over the same period in 2021. The adjusted capital and capital contributions and share purchases sharply increased while newly registered capital continued to decrease over the same period last year.

Of which:

Newly registered capital: There were 927 new projects were granted investment registration certificates (a year-on-year decline of 7.9%). The total registered capital reached over 5.72 billion USD (a year-on-year decline of 43.5%).

Adjusted capital: There were 579 projects registering to adjust their investment capital (a year-on-year increase of 3.2%). The total additional registered capital reached over 7.24 billion USD (a year-on-year increase of 59.3%).

Capital contribution and share purchase: There were 2,072 capital contributions and share purchases by foreign investors (a year-on-year decrease of 13.8%), with the total value of contributed capital reaching over 2.58 billion USD (a year-on-year increase 25.7%).

(Detailed data in Appendix I attached)

By sector:

Foreign investors poured funds into 18/21 sectors in the national economic classification system, of which the processing and manufacturing industry continued to lead with a total investment of over 10 billion USD, accounting for nearly 64.3% of the total registered investment capital. The real estate sector ranked second with a total investment capital of more than 3.21 billion USD, accounting for 20.7% of total registered investment capital. Next came information and communication industries; scientific and technological activities with total registered capital of nearly 526.2 million USD and 465 million USD respectively. The rest were other sectors.

However, in terms of the number of new projects, wholesale and retail; processing, manufacturing; and scientific and technological professional activities were the industries that attracted the most projects, accounting for 30.5%, 26.6% and 15.7% of the total projects, respectively.

By counterpart:

There were 88 countries and territories invested in Vietnam in the first seven months of this year. Among which, Singapore led with a total investment capital of more than 4.3 billion USD, accounting for 27.7% of total investment capital in Vietnam (a year-on-year decline of 27.3%). The Republic of Korea ranked second with over 3.26 billion USD, accounting for nearly 21% of total investment capital (a year-on-year increase of 48.2%). With a large-scale Lego project worth over 1.3 billion USD of total investment capital, Denmark ranked third with a total registered investment capital of approximately 1.32 billion USD, accounting for 8.55% 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 projects/capital contribution and share purchase in the first seven months of 2022 (accounting for 22.7% of new projects, 37% of adjusted projects and 35.8% of capital contribution and share purchase).

By location:

The foreign investors had invested in 51 provinces and cities nationwide in the first seven months of 2022. Binh Duong led the way with a total registered investment capital of nearly 2.6 billion USD, accounting for 16.7% of total registered investment capital and up 94.9% over the same period in 2021. Ho Chi Minh City ranked second with a total investment capital of more than 2.43 billion USD, accounting for 15.6% of the total capital, up 36.5% over the same period. Bac Ninh ranked third with a total registered investment capital of over USD 1.68 billion, accounting for 10.8% of total investment capital and increasing by 2.8 times over the same period in 2021. Next were Thai Nguyen, Hai Phong, Hanoi and so on.

In terms of the number of new projects, foreign investors still focused on 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 (40.2%), capital contributions and share purchases (67.8%) and ranked second in the number of projects registering to adjust investment capital (14.7%, after Hanoi which was 17.8%).

(Detailed data in Appendix II attached)

2. Evaluation of the FDI performance in the seven months of 2022

- The realised investment capital of foreign investment projects in the first seven months of 2022 achieved the highest increase since the beginning of the year, up 10.2% compared to the same period in 2021 and over 1.3 percentage point compared to the first six months. That shows that enterprises are constantly recovering, maintaining and expanding production and business activities.

- Adjusted capital of foreign investors in the first seven months of 2022 slightly decreased over the same period but continued to bounced compared to the previous months. Although the number of projects registering to adjust investment capital increased slower compared to the first five months, the scale of adjusted capital per project was high compared to the same period last year. Many projects of manufacturing electronic and high-tech products expanded large-scale capital in the first seven months of the year. The increase of adjusted investment capital shows that foreign investors continue to believe in the economy and investment environment of Vietnam, making decisions to expand their projects. However, it reflects the impact of inflation and rising prices due to political and trade conflict in the world.

- Newly registered investment capital continued to decreased but it was improved. Newly registered capital decreased sharply from January to April but it increased in May to July by 12.8%, 14.6% and 34.6%, respectively, over the same period. However, it happens because the newly registered capital of May and June in 2021 was sharply reduced by anti-pandemic measures in 2021. Newly registered capital tends to ascend in 2022 but the rate is not high as expected.

- Export of the FDI sector increased in the first seven months of 2022 and higher than the first six months. The FDI sector offsetting the trade deficit of domestic business sector, help the country to gain a trade surplus of approximately 0.24 billion USD in the first seven months of 2022 instead of a trade deficit of 0.6 billion USD in the six months of 2022.

3. Accumulated foreign investment as of July 20, 2022

Accumulated as of July 20, 2022, the whole country has 35,367 valid projects with a total registered capital of over 429.04 billion USD. The accumulated realised capital of FDI projects is estimated at nearly 263.17 billion USD, equaling 61.3% of the total valid registered investment capital

- By sector: Foreign investors have invested in 19/21 sectors in the national economic classification system, in which the processing and manufacturing industries accounted for the highest proportion with nearly 254.4 billion USD, accounting for 59.3% of the total investment capital. It was followed by real estate sector with 65.4 billion USD (representing 15.2% of total investment capital); electricity production and distribution with nearly 36.5 billion USD (or 8.5% of total investment capital).

- By counterpart: There are 139 countries having valid investment projects in. In which, RoK ranked first with a total registered capital of almost 79.9 billion USD (accounting for 18.6% of the total investment capital). Singapore ranked second with nearly 68.9 billion USD (accounting for 16.3% of the 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 nearly 55.4 billion USD (accounting for 12.9% of the total investment capital), followed by Binh Duong with over 39.6 billion USD (or 9.2% of the total investment capital), Hanoi with 37.9 billion USD (representing 8.8% of the total investment capital)./.

(Detailed data in Appendix III attached)

Translated by Bao Linh

Ministry of Planning and Investment