Viet-nam-diem-den-hap-dan-danh-cho-von-fdi-2023

Vietnam: A magnet For FDI Inflows 2023

Vietnam topped ASEAN and ranked 10th globally in attracting FDI in 2023 with $36.61 billion registered, $23.18 billion disbursed, and 3,776 new FDI projects registered. These are positive signs amidst the global economic instability and difficulties following the Covid-19 pandemic.

2023 marked a year of resounding success for Vietnam in attracting foreign direct investment (FDI). According to statistics, Vietnam has topped ASEAN and ranked 10th globally in FDI attraction:

  • Registered FDI capital of $31.15 billion, up 13.5% compared to 2022
  • Disbursed FDI capital of $22.4 billion, up 10.6% compared to 2022
  • Registered 3,776 new FDI projects, up 16.3% compared to 2022

FDI capital poured into 18/21 economic sectors, focusing on processing and manufacturing ($23.5 billion, up 39.9%). Real estate ranked second ($4.67 billion, up 4.8%). Electricity production and distribution and finance-banking ranked third and fourth respectively ($2.37 billion, up 4.9% and $1.56 billion, 27 times higher).

Vietnam attracted investment capital from 111 countries and territories with the main source of capital coming from Asia (78.8%). Of which:

Singapore led with over $6.8 billion, up 5.4% compared to 2022

Japan ranked second with nearly $6.57 billion, up 37.3%

Hong Kong increased 2.1 times compared to the same period, reaching over $4.68 billion

What has made Vietnam an attractive destination for international investors?

Thanks to the increasingly improved investment environment, stable economy and great development potential, along with deep international integration and competitive production costs, Vietnam is emerging as an attractive destination for international investors.

Factors attracting FDI:

An increasingly improved investment environment: with many preferential policies to attract foreign investors, the legal system is increasingly, ensuring safety for investment activities.

Stable economic growth: Vietnam’s economy has maintained a high growth rate over the past years, creating confidence for investors.

Large consumer market: with a young and dynamic population, a abundant, young, dynamic and eager-to-learn labor force are advantages in attracting FDI.

Deep international integration: Vietnam participates in many important Free Trade Agreements (CPTPP, EVFTA, RCEP), creating favorable conditions for import and export, attracting FDI.

Competitive production costs: compared to other countries in the region, the system of industrial zones is being developed strongly to meet the needs of FDI enterprises.

However, besides the advantages, Vietnam still has some limitations that need to be overcome to attract FDI more effectively: such as complicated administrative procedures, the quality of human resources needs to be improved, infrastructure, logistics and energy need to be invested and developed further.

With efforts to improve the investment environment and economic development, Vietnam promises to continue to be an attractive destination for FDI inflows in the coming years.

Reference:

Foreign Investment Attraction Report in 2023, Foreign Investment Agency – Ministry of Planning and Investment (2023).

DAT HUYNH

Case Study

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