As of August 20, 2022, the total newly registered capital, adjusted and contributed capital to buy shares and buy contributed capital of foreign investors reached approximately 16.8 billion USD, equivalent to 87.7% 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 at 50.7% and 3.6% respectively. The capital generated by FDI projects was estimated at 12.8 billion USD, an increase of 10.5% over the same period last year.

Accumulated to August 20, 2022, the whole country has 35,539 valid projects with a total registered capital of over 430 billion USD. The accumulated realised capital of foreign investment projects is estimated at nearly 264.4 billion USD, equalling 61.5% of the total valid registered investment capital.

Details are as follows:

1. FDI attraction in the first eight months of 2022

1.1. FDI performance:

Realized capital:

As of August 20, 2022, FDI projects were estimated to disburse 12.8 billion USD, an increase of 10.5% compared to the same period in 2021 and 0.3 percentage point compared to the first seven months.

Import and export performance:

Export: Export turnover of the foreign investment sector continued to increase in the first eight months of 2022, higher than the increase rate in the first seven months. Export (including crude oil) was estimated at over 184.66 billion USD, an increase of 17% compared to the same period last year, accounting for 73.9% of export turnover. Export (excluding crude oil) was nearly 183 billion USD, an increase of 16.6% over the same period, accounting for 73.2% of the country’s export turnover.

Import: Imports of foreign investment sector attained 161.26 billion USD, up 14.2% compared to the same period and accounting for 64.9% of the country’s import turnover.

In the first eight months of 2022, the FDI sector saw a trade surplus of over 23.4 billion USD including crude oil and 21.7 billion USD excluding crude oil, while the domestic sector had a trade surplus about 21.8 billion USD.

1.2. Investment registration

As of August 20, 2022, the total newly registered capital, adjusted capital and capital contributions and share purchases of foreign investors reached nearly 16.8 billion USD, as much as 87.7% over the same period in 2021 and decrease of 5.2 percentage points over the first seven months. The adjusted capital and capital contributions and share purchases increased while newly registered capital continued to decrease over the same period last year.

Of which:

Newly registered capital: There were 1,135 new projects were granted investment registration certificates (a year-on-year equal of 100%). The total registered capital reached over 6.35 billion USD (a year-on-year decline of 43.9%).

Adjusted capital: There were 676 projects registering to adjust their investment capital (a year-on-year increase of 5.8%). The total additional registered capital reached over 7.5 billion USD (a year-on-year increase of 50.7%).

Capital contribution and share purchase: There were 2,425 capital contributions and share purchases by foreign investors (a year-on-year decrease of 10.8%), with the total value of contributed capital reaching over 2.9 billion USD (a year-on-year increase 3.6%).

(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 10.7 billion USD, accounting for nearly 63.9% of the total registered investment capital. The real estate sector ranked second with a total investment capital of more than 3.3 billion USD, accounting for 19.9% of total registered investment capital. Next came scientific and technological activities; information and communication industries with total registered capital of nearly 620.8 million USD and 518.9 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 30.3%, 25.3% and 16.1% of the total projects, respectively.

By counterpart:

There were 94 countries and territories invested in Vietnam in the first eight months of this year. Among which, Singapore led with a total investment capital of more than 4.53 billion USD, accounting for 27% of total investment capital in Vietnam (a year-on-year decline of 27%). The Republic of Korea ranked second with 3.5 billion USD, accounting for nearly 21% of total investment capital (a year-on-year increase of 43.7%). Japan ranked third with a total registered investment capital of approximately 1.49 billion USD, accounting for 10.8% of total investment capital. Next were China, Denmark, 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 eight months of 2022 (accounting for 21.9% of new projects, 36.8% of adjusted projects and 34.9% of capital contribution and share purchase).

By location:

The foreign investors had invested in 53 provinces and cities nationwide in the first eight months of 2022. Ho Chi Minh led the way with a total registered investment capital of more than 2.7 billion USD, accounting for 16.1% of total registered investment capital and up 24.4% over the same period in 2021. Binh Duong ranked second with a total investment capital of nearly 2.64 billion USD, accounting for 15.7% of the total capital, up 57.9% over the same period. Bac Ninh ranked third with a total registered investment capital of over USD 1.75 billion, accounting for 10.4% of total investment capital and increasing by 2.4 times over the same period in 2021. Next were Thai Nguyen, Hai Phong, Bac Giang 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 (42.2%), capital contributions and share purchases (67.3%) and ranked second in the number of projects registering to adjust investment capital (14.2%, after Hanoi which was 17.9%).

(Detailed data in Appendix II attached)

2. Accumulated foreign investment as of July 20, 2022

Accumulated as of August 20, 2022, the whole country has 35,539 valid projects with a total registered capital of over 430 billion USD. The accumulated realised capital of FDI projects is estimated at nearly 264.4 billion USD, equalling 61.5% 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 more than 255.2 billion USD, accounting for 59.4% of the total investment capital. It was followed by real estate sector with 65.5 billion USD (representing 15.2% of total investment capital); electricity production and distribution with nearly 36.4 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 over 80.2 billion USD (accounting for 18.7% of the total investment capital). Singapore ranked second with nearly 70 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 more than 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 more than 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