FOREIGN INVESTMENT IN 2022: “BREAKING EXCEPTION”

Foreign direct investment (FDI) is a particularly important capital flow for growth and international economic integration, contributing to additional capital, technology, management capacity, business ability, organizational ability. and participate in the global supply chain.

In 2021, despite the complicated development of the Covid-19 epidemic, FDI into Vietnam reached 31.15 billion USD, an increase of 9.2% compared to 2020. This shows that foreign investors are placing an order. great confidence in Vietnam’s investment environment. Newly registered and adjusted investment capital both increased compared to 2020, especially adjusted capital increased sharply by 40.5%.

Entering 2022, foreign direct investment inflows into Vietnam are expected to prosper again thanks to attractive investment attraction policies and the policy of reopening the economy after two years of closure. Covid-19 epidemic. Total foreign investment capital registered in Vietnam as of March 20, 2022 reached US$8.91 billion, down 12.1% over the same period last year.

– Newly registered capital has 322 licensed projects with the registered capital reaching 3.21 billion USD, an increase of 37.6% in the number of projects and a decrease of 55.5% in the registered capital over the same period last year. prior to; in which, the processing and manufacturing industry with newly licensed foreign direct investment is the largest with the registered capital of 2.19 billion USD, accounting for 68.2% of the total newly registered capital; real estate business reached 599.9 million USD, accounting for 18.7%; the remaining industries reached 422.7 million USD, accounting for 13.1%.

Among 35 countries and territories with newly licensed investment projects in Vietnam in the first three months of 2022, Denmark is the largest investor with $ 1.32 billion, accounting for 41.1% of the total capital. new level registration; followed by Singapore with 626.6 million USD, accounting for 19.5%; China $ 379.5 million, accounting for 11.8%; Taiwan 219.9 million USD, accounting for 6.8%; Hong Kong Special Administrative Region (China) $ 191.7 million, accounting for 6%.

– Adjusted registered capital of 228 projects (licensed from previous years) with an additional investment capital of 4.07 billion USD, up 93.3% over the same period last year.

By sector, foreign direct investment in the processing and manufacturing industry reached nearly 5 billion USD, accounting for 68.7% of the total newly and additionally registered capital; real estate business reached 1.71 billion USD, accounting for 23.5%; the remaining industries reached 569.6 million USD, accounting for 7.8%.

– Registered capital for capital contribution and share purchase by foreign investors had 734 times with a total value of capital contribution of 1.63 billion USD, up 102.6% over the same period last year. Of which, there were 341 times of capital contribution or share purchase to increase the charter capital of the enterprise with a capital contribution value of USD 819.7 million and 393 times of foreign investors buying back domestic shares without increasing charter capital. with a value of 811.4 million USD. For the form of capital contribution and share purchase by foreign investors, investment capital in real estate business reached 992.9 million USD, accounting for 60.9% of the value of capital contribution; processing and manufacturing industry reached 300.6 million USD, accounting for 18.4%; the remaining industry is 337.7 million USD, accounting for 20.7%.

The above figures show that foreign investors have considered Vietnam as a safe investment destination, expressed their confidence in the business investment environment, and continued to expand investment in Vietnam, when Vietnam controlled With the Covid-19 epidemic under control, the economy recovered and grew back into the new normal.

In addition, realized FDI in Vietnam in the first three months of this year was estimated at US$4.42 billion, up 7.8% over the same period last year, this is the highest level of the first quarter in the past 5 years. In which: Processing and manufacturing industry reached 3.44 billion USD, accounting for 77.8% of total realized foreign direct investment capital; production and distribution of electricity, gas, hot water, steam and air conditioning reached 379.8 million USD, accounting for 8.6%; real estate business reached 350.3 million USD, accounting for 7.9%.

Realized foreign direct investment capital in the first 3 months of the year 2018-2022 (Billion USD)

Although the opportunity to receive FDI is huge, the competition to attract FDI is increasingly fierce, especially in the context of limited capital supply and the heavy impact of the Covid-19 pandemic. take advantage of attracting external resources to maintain and recover the economy. Therefore, competition to attract FDI among developing countries with similarities in market, development level, technology and labor is increasingly fierce. Therefore, in the coming time, Vietnam needs to focus on finding measures that can develop service industries in depth; creating a good impetus for increasing the productivity of the service sector as well as the production and business sector and many other sectors of the economy. In addition, Vietnam needs to prepare necessary conditions to attract investment such as reviewing and supplementing the clean land fund; review the electricity planning; training high-quality human resources; supplementing policies to develop supporting industries; develop regulations and standards as a new filter to select FDI investors with advanced technology, able to withstand external pressure for sustainable development and national security.

Statistical Information:Data and Statistics