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Foreign direct investment in Vietnam: Prospects in 2022

Foreign direct investment in Vietnam: Prospects in 2022

Wednesday 05, 01 2022
FDI into Vietnam in 2021 is estimated at 31.15 billion USD. Of which, the processing and manufacturing industry attracts more than 18 billion USD. Prospects for FDI into Vietnam in 2022 are bright, with many leading foreign companies expressing their confidence in Vietnam in the long term.

FDI into Vietnam surpassed 31 billion USD

According to data from the Foreign Investment Agency (under the Ministry of Planning and Investment), the total registered FDI capital into Vietnam as of December 20, including newly registered capital, adjusted registered capital and capital contribution value, share purchase by foreign investors, reached 31.15 billion USD, up 9.2% compared to 2020. Foreign direct investment capital realized in Vietnam in 2021 is estimated at 19.74 billion USD.

Foreign Investment Agency

Specifically, 1,738 new projects were granted investment registration certificates in 2021 with a total registered capital of over 15.2 billion USD, up 4.1% in value over the same period in 2020. Regarding registered capital signed for adjustment, there were 985 projects licensed from previous years registered to adjust investment capital, increasing by 9.01 billion USD, up 40.5% over the previous year.

Foreign investors have invested in 18 industries out of 21 national economic sectors. In which, the processing and manufacturing industry leads the way with a total investment of over 18.1 billion USD, accounting for 58.2% of the total registered investment capital. Although the electricity production and distribution industry attracted only a small number of new and adjusted projects, and contributed capital to buy shares, there are projects with large capital scales. Therefore, it ranks second with a total investment capital of over 5.7 billion USD, accounting for 18.3% of total registered investment capital. Next are the real estate, wholesale-retail businesses with total registered capital of over 2.6 billion USD and over 1.4 billion USD, respectively.

In terms of the number of new projects, the processing and manufacturing industry, wholesale and retail industry, science and technology are the industries that attract the most projects, accounting for 30.7%, 28.1%, and 16.7% of total projects.

In 2021, 106 countries and territories invested in Vietnam. Singapore took the lead with a total investment of over 10.7 billion USD, accounting for 34.4% of total investment capital in Vietnam. South Korea ranked second with nearly 5 billion USD, accounting for 15.9%, and Japan ranked third with a total registered investment capital of nearly 3.9 billion USD, accounting for 12.5%.

FDI-attracting provinces

Regarding FDI-attracting provinces, Hai Phong overtook Long An to take the lead in the whole year with a total registered investment capital of over 5.26 billion USD, accounting for 16.9% of total registered investment capital and nearly 3.5 times over the same period in 2020. Long An ranked second with over 3.84 billion USD, accounting for 12.3% of the total investment capital of the country. Ho Chi Minh City ranked third with nearly 3.74 billion USD, accounting for about 12% of total investment capital.

Foreign investors are confident in Vietnam's long-term prospects

According to the World Investment Report 2021 of the United Nations Conference on Trade and Development 2021, Vietnam is for the first time in the group of top 20 FDI-attracting countries in the world.

The leading foreign business associations in Vietnam have continuously conducted surveys over the past several months and showed that nearly 80% of enterprises have rated very positively or positively about the medium and long-term prospects of their enterprises in Viet Nam.

Mr. Torben Minko - Managing Director of B. Braun Vietnam Co. Ltd., said that living with COVID-19 under Resolution 128 issued by the government is an important condition for Vietnam to have a quick economic recovery. There are plans readied to double investment in Vietnam in 2022.

The resilience of the economy will remain strong in the future. The pace of vaccination deployment is happening faster than expected, said Mr. Thue Quist Thomasen - Chairman of the Nordic Chamber of Commerce in Vietnam.

 American Chamber of Commerce in Vietnam

In terms of investment and business in Vietnam in the new year, according to the American Chamber of Commerce in Vietnam, nearly 80% of foreign enterprises have rated very positively or positively about the medium- and long-term prospects when investing in Vietnam.

Standard Chartered Bank has just said that over 40% of surveyed international companies are exploring manufacturing activities in Vietnam or planning to set up headquarters here in the coming years, confirming the immediate fluctuations caused by Vietnam. The pandemic does not affect the long-term confidence of foreign investors in Vietnam.

 

Compiled by VietnamCredit

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