Singapore leads foreign investment in Vietnam

Workers at Apparel Far Eastern (Vietnam) Co., Ltd in the Vietnam - Singapore Industrial Park, Thuan An city, Binh Duong province. (Photo: VNA)

Singapore remained the biggest foreign investor in Vietnam among the 51 countries and territories investing in Vietnam in the first two months of 2023, with 978.4 million USD, making up nearly 31.6% of the total registered foreign direct investment (FDI) in the country, down 42.7% year-on-year, the Ministry of Planning and Investment (MPI) reported.

Taiwan (China) ranked second with nearly 407.1 million USD, accounting for 13.1% of the total, and 3.85 times higher than that in the same period last year. The Netherlands came third with nearly 369 million USD, equivalent to 11.9% of the total.

China led in the number of new investment projects in Vietnam, accounting for nearly 17.2%. Meanwhile, the Republic of Korea (RoK) was the leader in terms of capital adjustment (21.1%) and capital contributions and share purchases (30.5%).

Foreign businesses have invested in 39 provinces and cities nationwide in the reviewed period.

Bac Giang led the localities in FDI attraction with 824.3 million USD, making up 26.6% of the total, up 8.4 times over the same period in 2022. Ho Chi Minh City ranked second with 103 new projects worth 369.1 million USD, accounting for 11.9% of the total.

The ministry said the total newly-registered capital, adjusted capital, and capital contribution and share purchase of foreign investors neared 3.1 billion USD, down 38% year-on-year.

As of February 20, as many as 2.55 billion USD of foreign investment capital had been disbursed, a decrease of 4.9% compared to the same period last year.

Foreign firms have poured capital into 17 out of Vietnam's 21 sectors, with the processing and manufacturing industry taking the lead with more than 2.17 billion USD, making up 70.1% of the total. It is followed by real estate with 396.9 million USD, accounting for over 12.8%.

Experts said to attract greater FDI projects in the coming time, Vietnam needs to fundamentally renovate all activities, from investment promotion to building and perfecting institutions and policies on foreign investment in line with development trends, approaching international standards, harmonising with international commitments, and ensuring harmony, consistency, publicity, transparency and competitiveness./.