Vietnam attracts FDI in
10 months of 2021
In 2021, due to the
spread of the Covid-19 epidemic in the world, the economic situation has been
seriously affected. This greatly affects the investment performance of
investors making investment in Vietnam. However, Vietnam government still
implements many policies to attract forein investors to set up company, make
investment, in order to realize the “dual goal” of fighting the epidemic and
developing socio-economic and achieving economic growth to get the high
results.
According to statistics
of the Ministry of Planning and Investment, as of October 20th, 2021, the total
newly registered capital, adjusted and contributed capital to buy shares, and
buy capital contributions from foreign investors reached USD 23.74 billion,
which is accounted for 1.1% more than the same period in 2020. Realized capital
of foreign investment projects is estimated at USD 15.15 billion, accounted for
4.1% over the same period in 2020.
Accumulated to October
20th, 2021, the Vietnam has attracted 34,266 projects with a total registered
capital of over USD 404 billion. The accumulated realized capital of foreign
investment projects is estimated at over USD 247 billion, equal to 61.1% of the
total valid registered investment capital.
Foreign investors have
invested in 18 industries out of a total of 21 national economic sectors. In
which, the processing and manufacturing industry leads the way with total
investment capital of USD 12.74 billion, accounting for 53.7% of total
registered investment capital. Next is the electricity production and
distribution industry ranked second with a total investment of USD 5.54
billion, accounting for 23.3% of the total registered investment capital.
Followed by real estate, wholesale and retail businesses with a total
registered capital of USD 2.12 billion and over USD 803 million respectively.
In terms of the number
of new projects, the processing and manufacturing industry, the wholesale and
retail trade, and professional and scientific and technological activities are
the industries that attract the most projects, accounting for 33.1% and 27.8%
respectively, and 16% of total projects.
There are 97 countries
and territories have the investors invested in Vietnam in the 10 months of
2021. In which, Singapore leads with a total investment of USD 6.77 billion,
accounting for 28.5% of total investment capital in Vietnam. Korea ranks second
with USD 4.15 billion, accounting for 17.5% of total investment capital. Japan
comes third with a total registered investment capital of nearly USD 3.4
billion, accounting for 14.3% of total investment capital. Investment amount is followed by China, Hong
Kong, Taiwan,…
Foreign investors have
invested in 58 provinces and cities in Vietnam in 10 months of 2021. Long An
province leads the way with a total registered investment capital of USD 3.68
billion, accounting for 15.5% of total registered investment capital, including
a large power project of up to USD 3.1 billion (accounting for 84.2% of total
registered investment capital of Long An province). Ho Chi Minh City comes to
second place with over USD 2.73 billion, accounting for 11.5% of total
investment capital. Hai Phong city ranks third with a total registered capital
of USD 2.72 billion, accounting for nearly 11.5% of total investment capital.
Next are Binh Duong, Can Tho, Quang Ninh,…
In terms of the number
of projects, foreign investors still focus a lot on investing in big cities
with convenient infrastructure such as Ho Chi Minh City, Hanoi, Bac Ninh. In
which, Ho Chi Minh City leads in number of new projects (34.1%), number of adjusted
projects (17.7%) and capital contribution and purchase of contributed capital
(59.4%).
In addition, Vietnam
has implemented the selective investment attraction policies (reducing
quantity, increasing quality) to eliminate small-scale projects with little
added value. This also partly affects the number of projects of small investors
planning to invest in Vietnam.
To ensure safety in the
prevention and control of the Covid-19 epidemic, Vietnam has applied a policy
of restricting entry and implementing long-term isolation, which affects the
progress of surveys and implement the procedures of experts and project
development groups.
Due to the impact of
the epidemic, Vietnam has implemented a factory blockade and restricted the
movement of workers in industrial zones, slowing production, reducing capacity
and output, and disrupting the supply chain. This affects the psychology of new
investors who are planning to invest in Vietnam.
In 2021, many factors
affect the investment performance of international investors to Vietnam.
However, with many policies to support and attract investment, Vietnam still
becomes an investment destination for many big investors in the world. In late
2021 and early 2022, with many policies to attract FDI to revive the economy
after the epidemic, Vietnam hopes that international investors can seize the
opportunity to make investment, establish company in Vietnam, in order to bring the best
economic benefits for their business.
Finding the right
business partner in Vietnam is also important. We recommend doing research on
the reputation of the company and individual shareholders, corporate or
individual, gathering publicly available company information, and performing
background checks on key personnel to find potential risks in cooperation.
Working with a reliable partner can help achieve economic benefits, saving time
and money in business.
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