According to the Foreign Investment Agency, Ministry of Planning and Investment, in September 2024 alone, the total FDI capital reached the highest level in the months since the beginning of the year, with nearly 4.26 billion USD, accounting for 17.2% of the total investment capital of the country in 9 months. The increased investment capital also reached the highest level since the beginning of the year with projects having large capital expansion.
FDI capital is concentrated in provinces and cities with many advantages in attracting foreign investment (good infrastructure, stable human resources, efforts to reform administrative procedures and dynamism in investment promotion...) such as Bac Ninh, Ho Chi Minh City, Quang Ninh, Ba Ria - Vung Tau, Binh Duong, Hanoi, Hai Phong, Dong Nai, Bac Giang, Ninh Thuan. These 10 localities alone accounted for 80.1% of new projects and 72.9% of the country's investment capital in the first 9 months.
The largest investment partners in the first 9 months were all traditional partners of Vietnam and came from Asia. The leading countries and territories (Singapore, China, South Korea, Hong Kong - China, Japan) alone accounted for 73.2% of new investment projects and 75.2% of the total registered investment capital of the country.
Looking at the overall picture of FDI, Mr. Troy Griffiths, Deputy Managing Director of Savills Vietnam, said that there were not many significant FDI activities in the real estate sector, especially in the third quarter. Most of the foreign direct investment capital is still focused on the manufacturing sector.
“However, the good news is that the investment structure in manufacturing has shifted positively. Instead of focusing on traditional industries such as textiles and wood, we are witnessing a significant increase in investment projects in high-tech sectors such as electronics and component manufacturing. This shift not only brings in large investment capital but also contributes to improving production capacity, creating many high-quality jobs and promoting the development of supporting industries,” Mr. Troy analyzed.
According to a survey by Savills in the third quarter of 2024, for the serviced apartment segment, in the Southern region, the target tenants are mainly experts and business travelers in Ho Chi Minh City, Dong Nai and Binh Duong. FDI capital flows boost the accommodation demand of experts, however, FDI capital in Ho Chi Minh City has decreased.
According to the Ministry of Planning and Investment, in the first 8 months of 2024, total FDI capital in Ho Chi Minh City decreased by 11% year-on-year to 1.8 billion USD, while Dong Nai increased by 41% year-on-year to 1.3 billion USD and Binh Duong increased by 7% year-on-year to 1.4 billion USD.
In the North, FDI sources are distributed in Hanoi and have spread to provinces such as Phu Tho, Bac Giang, Thai Nguyen, Vinh Phuc. This has increased the growing housing demand of foreign experts.
“Although still ongoing, the growth rate of FDI has slowed down significantly compared to previous years. This is partly due to the decline in large investment projects in energy, especially liquefied natural gas and high-value energy projects (from 2-4 billion USD) that have taken place in recent years. However, the trend of foreign direct investment continues, showing a positive outlook,” Mr. Troy added.
