FDI surges 32% to $36B

By Duc Minh   December 27, 2023 | 04:32 am PT
Foreign direct investment pledges have topped US$36.6 billion for the year, a 32% jump from last year.

Some $20.2 billion was invested in 3,188 new projects, up 62.2% and 56.6%, according to the Foreign Investment Agency (FIA).

The rest went into expanding existing businesses and acquisition of stakes.

A record $23.2 billion worth of FDI was disbursed.

The high disbursement rate means previous legal hurdles have been effectively removed, according to the FIA, which also said the growing FDI indicates that Vietnam remains a safe and lucrative investment destination.

The FDI is mostly concentrated in provinces and cities with more developed infrastructure, workforce and investment environment like Hanoi, HCMC, Hai Phong cities and Quang Ninh, Bac Giang, Thai Binh, Bac Ninh, Nghe An, Binh Duong, and Dong Nai provinces.

The 10 of them accounted for 74.4% of the investment.

Manufacturing industry received the most FDI at $23.5 billion, or 64% of the total, up 40% year-on-year, followed by property, energy production and distribution and finance–banking.

Singapore was the biggest investor, accounting for 18.6% of FDI, followed by Japan, Hong Kong, China, Taiwan, and South Korea.

Earlier this month American credit rating agency Fitch Ratings upgraded Vietnam’s long-term foreign currency issuer default rating from BB to BB+, saying that the country’s cost competitiveness, educated workforce relative to peers and entry into regional and global free-trade agreements bode well for continued strong FDI inflows amid a global supply chain diversification.

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