New FDI down in 8M, disbursement up
Analysts believe that although Vietnam remains an attractive destination for foreign investment, turbulence in the global economy could still have a major impact on inflows.
As of August 20, according to figures from the Foreign Investment Agency at the Ministry of Planning and Investment (MPI), total newly-registered capital, additional capital, and capital contributed to buy shares stood at $16.8 billion, down 12.3 per cent year-on-year.
Many analysts believe that while Vietnam is still an attractive investment destination, in the context of a decline in global FDI inflows due to world events such as the Russia - Ukraine conflict, supply chain disruptions, and high inflation, among others, new FDI inflows may be affected.
Though newly-registered capital has not fully recovered from the effects of Covid-19, disbursed capital in the first eight months hit $12.8 billion, up 10.5 per cent over the same period of 2021. This reveals foreign investor confidence in Vietnam’s investment prospects.
The manufacturing and processing industry continued to lead the way in the period, with capital of over $10.7 billion, accounting for 63.9 per cent of the total. Real estate was second, with over $3.3 billion, or 19.9 per cent, followed by science and technology with $620.8 million and information and communications with $518.9 million.
Ninety-four countries and territories invested in Vietnam. Singapore topped the list, with over $4.53 billion, or 27 per cent of the total, down 27 per cent year-on-year. South Korea was second, with nearly $3.5 billion, or 21 per cent, up 43.7 per cent, followed by Japan, with $1.49 billion, or 10.8 per cent of the total.
