Hanoi (VNA) – Amid the ongoing restructuring of the global supply chain, foreign investors continue to view Vietnam as a crucial investment destination in the medium and long term, according to the Ministry of Planning and Investment (MPI).
Based on core factors, foreign investment attraction in the second half of 2024 is expected to maintain positive growth momentum and reach levels equivalent to or higher than those in 2023, the ministry said.
Improved quality of projects
Vietnam attracted nearly 15.2 billion USD in foreign direct investment (FDI) in the first six months of this year, a year-on-year increase of 13%, the General Statistics Office has reported.
Some 10.8 billion USD in FDI was disbursed in the period, rising 8.2% against the same time last year.
As of June 20, Vietnam was home to 40,544 valid foreign-invested projects with a total registered capital of 484.8 billion USD. The cumulative disbursed capital was estimated at 308 billion USD, equivalent to 63.5% of the total.
Foreign investors injected capital into 18 out of 21 economic sectors in the country. The processing and manufacturing industry attracted the largest investment of 10.69 billion USD, or 70.4% of the total, followed by realty sector (over 2.47 billion USD), wholesale and retail sale industry (614 million USD), and professional, scientific and technological activities (over 452 million USD).
The MPI said that the increase in both registered and disbursed FDI capital would further stimulate domestic activities.
The quality of investment projects has seen significant improvement. Notably, many large projects in the fields of semiconductors, energy, manufacturing components, electronics, and high-value-added products, have been expanded and received more investment.
Foreign investors funneled their capital into 48 cities and provinces across the nation, with Bac Ninh leading in FDI attraction with 2.58 billion USD. In second and third places were Ba Ria – Vung Tau and Quang Ninh, with corresponding FDI of some 1.54 billion USD and 1.36 billion USD.
Registering nearly 5.58 billion USD in Vietnam, Singapore was the largest investor among 84 countries and territories with investment in the country. They accounted for around 36.7% of total FDI in the reviewed period and representing a year-on-year surge of 86%. Japan came second with more than 1.73 billion USD, followed by Hong Kong (China), the Republic of Korea, and China.
Keeping a steady pace
According to the MPI, the global economic outlook in 2024 sees weak recovery, with many risks and challenges. The complex developments following the COVID-19 pandemic, coupled with geopolitical instability and competition among major economies is to continue impacting the global economy for the medium and long term.
However, domestic and international financial institutions forecast that Vietnam's FDI attraction in 2024 will maintain a positive outlook thanks to three core factors. These are its significant role in the supply chain diversification strategy of multinational manufacturers, the positive economic growth this year, and stable macroeconomic conditions.
Vietnam has investment prospects in several pioneering industries, such as technology and renewable energy, the ministry said, adding that investors’ confidence in Vietnam continues to be strengthened.
Many investors see Vietnam as an attractive destination with great potential and room for investment in the medium and long term.
Domestic and international organisations said that Vietnam's position in the electrical and electronics supply chain has been increasingly solidified, luring more electronics manufacturing corporations into the fray./.
