Vietnam’s FDI forecast to remain strong through 2024

The year 2024 continues to look good for Vietnam’s foreign investment attraction, as right from the beginning of this year, the country has attracted a host of projects.

According to the Foreign Investment Agency under the Ministry of Planning and Investment, Vietnam had attracted more than $2.36 billion in foreign direct investment (FDI) as of January 20, an increase of 40.2% over the same period in 2023.

As many as 190 new projects were granted investment registration certificates, a year-on-year rise of 24.2%, with a total registered capital of more than $2 billion, 66.9% higher than that of the same period last year.

In addition, 75 projects registered to adjust investment capital with more than $235.4 million added, down 15.7% and 23.1% respectively.

The month also saw foreign investors contribute more than $116.5 million to make 174 share purchases, down 14.7% and 33.1% respectively over the same period last year.

Specifically, on January 13, authorities of the central province of Nghe An granted investment licences to five foreign-invested projects, with a total capital of $390 million. Notably among them were a $120 million project of Taiwan (China)’s Radiant Opto-Electronics Corporation and a $115 million project of Hong Kong (China)’s Everwin Precision. In late October 2023, Everwin Precision also began work on a $200 million project at the Vietnam-Singapore Industrial Park (VSIP) in the central locality.

Earlier, the northern province of Hai Duong handed over investment certificates to 27 projects, with a total capital of more than $1.5 billion. Besides several domestic projects, there are large-scale FDI projects, such as a $270 million stationery factory invested by Deli Vietnam Office Technology Co., Ltd. There was also a project worth $260 million by Biel Crystal Vietnam Manufacturing Limited, and a Boviet Hai Duong solar photovoltaic cell factory worth $120 million.

Among nine projects granted investment certificates in early January in the southern province of Dong Nai, there were four foreign-invested, totalling $156.4 million. Meanwhile, $217 million were added to four existing FDI projects.

Speaking at a recent Government meeting with localities, Deputy Prime Minister Le Minh Khai stressed that Vietnam remains an attractive destination to foreign investors, given the fact that up to $36.6 billion was registered, and $23.2 billion was disbursed last year. These are the highest ever figures.

Michael Kokalari, Director of VinaCapital’s Macroeconomic Analysis and Market Research Department, assessed that Vietnam’s attraction of foreign investment in 2024 will continue to be very positive.

He shared that his firm has received a lot of information about Japanese groups looking for opportunities to cooperate with domestic units, such as VinaCapital, to pour capital into Vietnam’s real estate sector. Other fields that promise to attract large capital flows may be manufacturing and retail, he said.

Speaking at an event to release the Business Confidence Index (BCI) by the European Chamber of Commerce (EuroCham) in Vietnam, its Chairman Gabor Fluit said that 31% of EuroCham members now rank Vietnam among their top three global investment destinations.