FDI inflows surge 58% to $38B in 7 months

The National Statistics Office under the Ministry of Finance reported that realized FDI reached an estimated $15.2 billion during the January-July period, an increase of 11.8% from a year earlier and the highest seven-month disbursement recorded over the past five years.

More than 82.6% of the disbursed capital, equivalent to $12.55 billion, was channelled into the processing and manufacturing sector.

Cai Mep – Thi Vai Terminal in HCMC. Photo by VnExpress/Truong Ha

Newly registered FDI posted particularly strong growth. During the period, Vietnam licensed 2,429 new projects with total registered capital of $21.05 billion. While the number of projects rose 7.8% year-on-year, newly registered capital more than doubled, 2.1 times higher than the level recorded in the same period last year.

Processing and manufacturing remained the largest recipient of new FDI, attracting $11.58 billion, or 55% of the total. Electricity, gas and water production and distribution ranked second with $3.13 billion, accounting for 14.9%.

Among 69 countries and territories investing in Vietnam, Singapore remained the largest source of newly registered capital with $7.5 billion, representing 35.6% of the total. It was followed by the Republic of Korea with $5.61 billion, Hong Kong (China) with $2.91 billion, and China with $1.73 billion.

Additional capital for existing projects also remained positive, with 666 projects increasing their investment by a combined $10.43 billion, up 4.4% year-on-year.

Meanwhile, capital contributions and share purchases totalled $6.58 billion through 1,815 transactions, soaring 61.6% compared with the same period last year. Most of the investment was directed to professional, scientific and technological activities, which attracted $2.68 billion, followed by the wholesale and retail sector with $1.96 billion.

The latest figures mark a sharp increase from the beginning of the year. In January, newly registered and adjusted FDI totalled just over $2.36 billion, while realised capital stood at about $1.48 billion.

The steady monthly rise in newly registered capital since then has pushed the total above $21 billion, reflecting stronger investor confidence, particularly in high-tech manufacturing, energy production and processing industries.

Vietnam's investment abroad also recorded robust growth in the first seven months. Total outbound investment, including newly registered and adjusted capital, reached $2.36 billion, 4.5 times higher than the figure a year earlier.

New overseas investment licences were granted to 106 projects worth $1.17 billion, up 2.9 times year-on-year, while additional capital for existing overseas projects reached $1.19 billion, a 9.2-fold increase.

Outbound investment was concentrated on transport and warehousing, which accounted for $601.7 million or 25.5% of the total, and electricity and gas production and distribution with $585.8 million, or 24.8%.

Laos remained the largest destination for Vietnamese investment, receiving $638.3 million, equivalent to 27% of the total, followed by Cambodia with $449.9 million and Indonesia with $308.6 million. More distant markets such as India, the Philippines and Kazakhstan are also increasingly attracting Vietnamese investors.