As Japan’s FDI inflows into Vietnam have been slowing down in the last few years, Singapore has surpassed Japan for the first time in terms of total investment capital in Vietnam.
Data from the Foreign Investment Department (Ministry of Planning and Investment) as of February 20, shows that Singapore is now the leading country in terms of total foreign direct investment (FDI) into Vietnam in the first two months of the year, with a figure of more than 1.7 billion USD. Korea ranked second with a total investment capital of 1.4 billion USD.
Accumulated up to now, Korea remains the lead foreign investor in Vietnam’s market with a total registered capital of over 78.4 billion USD (which accounts for 18.7% of total investment capital).
After many consecutive years of being the second largest foreign investor in Vietnam in terms of total capital registered, Japan is now ranked after Singapore. In particular, Japan’s FDI growth rate slowed down at the start of 2020, while Singapore’s investment continues to grow.
Consequently, since the beginning of this year, the lion island nation has surpassed Japan for the first time, becoming the second largest investor in Vietnam.
Three largest foreign investor in Vietnam (US$ million)
In particular, in the first two months of the year, the Foreign Investment Agency issued a statement that newly registered capital still decreased because there were not many large-scale projects. However, adjusted capital and share capital both increased over the same period.
Additionally, it is estimated that FDI projects by February 20 will have disbursed 2.7 billion USD, up more than 7% over the same period last year.
In the first two months of the year, foreign investors targeted 17 industries out of a total of 21 national economic sectors. In particular, the processing and manufacturing industries lead the way with a total investment of over 3.13 billion USD, accounting for nearly 63% of the total registered investment capital.
The real estate business ranked second with a total capital of more than 1.5 billion USD, accounting for more than 30% of the total foreign investment, followed by professional science and technology activities, electricity production and distribution, with a total registered capital of 109.6 million USD and nearly 60 million USD, respectively.
Some major projects in the first two months of the year include the investment project of the VSIP Bac Ninh (Singaporean’s investment) with an additional investment of nearly 941 million USD; the Samsung Electro-mechanics Vietnam Company project in Thai Nguyen, which successfully secured 920 million USD of Korean capital investment.
In addition, the factory project of manufacturing electronic equipment, network equipment, and multimedia audio products, based in Bac Ninh province has also secured an investment of nearly 306 million USD from Hong Kong .
As of February 20, FDI projects have covered all 63 provinces and cities. Ho Chi Minh City is still the leading city in attracting FDI, with over 52.8 billion USD (accounting for 12.6% of total investment capital). Next are Binh Duong, with nearly 37.8 billion USD (accounting for 9% of total investment capital); and Hanoi, with nearly 37.6 billion USD (accounting for nearly 9% of total investment capital).
Quynh Trang. “Singapore Overtakes Japan in Terms of FDI Inflows into Vietnam.” VNEXPRESS, 2022, vnexpress.net/singapore-vuot-nhat-ban-ve-dong-von-fdi-rot-vao-viet-nam-4432473.html. (Accessed Mar. 1, 2022)
Translated by: Pham Hoang Hung