FDI attraction hit over USD31 billion

MInH tHanH

Foreign direct investment (FDI) into Vietnam in 2021 is estimated at USD31.15 billion, up 9.2 percent compared to 2020. Foreign investors have invested in 18 out of 21 economic industries.

According to the latest data from the Foreign Investment Agency under the Ministry of Planning and Investment, the total registered FDI capital into Vietnam as of 20 December 2021, including new registration, adjustment, capital contribution and share purchase by foreign investors reached USD31.15 billion, up 9.2 percent compared to 2020. Foreign direct investment capital realized in Vietnam in 2021 was estimated at USD19.74 billion. In particular, 1,738 new projects were granted investment registration certificates in 2021 with a total registered capital of over USD15.2 billion, up 4.1 percent in value over the same period last year. 985 licensed projects registered to increase investment capital by USD9.01 billion, up 40.5 percent over the previous year.

Foreign investors have invested in 18 out of 21 national economic industries. In which, the processing and manufacturing industry leads the way with a total investment of over USD18.1 billion, accounting for 58.2 percent of the total registered capital. electricity production and distribution industry ranked second with over USD5.7 billion, accounting for 18.3 percent of the total, followed by the real estate, wholesale-retail with USD2.6 billion and over USD1.4 billion, respectively. Last year, 106 countries and territories invested in Vietnam. Singapore took the lead with a total investment of over USD10.7 billion, accounting for 34.4 percent of the total investment capital. South Korea ranked second with nearly USD5 billion, accounting for 15.9 percent. Although South Korea ranks second by investment capital, it is the leading partner in terms of number of projects. Japan ranked third with USD3.9 billion, accounting for 12.5 percent.

Regarding FDI attraction, Hai Phong overtook Long An to take the lead in the whole year with a total registered investment capital of over USD5.26 billion, accounting for 16.9 percent of the total registered investment capital, nearly 3.5 times higher than the same period last year. Long An ranked second with over USD3.84 billion, accounting for 12.3 percent. Ho Chi Minh City ranked third with nearly USD3.74 billion, accounting for nearly 12 percent of the total investment capital.

experts forecast that the FDI into Vietnam will continue to increase sharply in 2022 when countries have gradually been opening doors and adapted to the new normal. Vietnam has advantages in labour cost, infrastructure and especially a series of free trade agreements that Vietnam has signed.