Singapore Leads Surge in Vietnam FDI

Foreign direct investment (FDI) into Vietnam experienced a 13.4% year-on-year increase in the first three months of 2024, reaching $6.17 billion. Disbursed capital also saw a 7.1% rise to $4.63 billion.

Singapore leads the investment surge, accounting for 41.3% of total FDI, a 51.3% increase compared to the same period in 2023.

Investment primarily targets the processing and manufacturing sectors, which attracted $3.93 billion (63.6% of total FDI). The real estate sector follows, capturing $1.56 billion (25.6%). This aligns with a noticeable shift toward projects in energy, component production, electronics, and higher value-added manufacturing.

Traditional Asian partners dominate FDI in Vietnam. Along with Singapore, Hong Kong (China), China, and Japan are key investors. Notably, Singaporean investment includes a $662 million real estate project by CapitaLand Group. Geographically, Hanoi, Bac Ninh, Quang Ninh, Thai Nguyen, Ho Chi Minh City, and Dong Nai are leading investment destinations.

While overall FDI increased, average new project size has decreased, suggesting a greater number of smaller investments. Localities with strong infrastructure, skilled labor, and favorable business environments continue to attract the most FDI.

The FDI sector's sizeable trade surplus ($12.3 billion, including crude oil) is helping offset Vietnam's domestic trade deficit, contributing to an overall trade surplus of $6.7 billion for the country.

Source: VnEconomy