FOREIGN INVESTMENT SITUATION IN VIETNAM FIRST 5 MONTHS OF 2022

Until May 20, 2022, Vietnam has 34,989 valid projects with a total registered capital of over $426.14 billion. The accumulated realized capital of foreign investment projects is estimated at USD 259.31 billion, equaling 60.9% of the total valid registered investment capital.

Details are as follows:

1. The situation of attracting foreign investment in the first 5 months of 2022

1.1. Operational Status

Realized capital:

As of May 20, 2022, it is estimated that foreign investment projects have disbursed 7.71 billion USD, up 7.8% over the same period in 2021.

Import and export situation:

Export: The export turnover of the FDI sector continued to increase in the first 5 months of 2022. Exports (including crude oil) were estimated at over 115.29 billion USD, up 17.6% over the same period, accounting for 73 .7% of export turnover. Exports excluding crude oil were estimated at over 114.32 billion USD, up 17.4% over the same period, accounting for 73.1% of export turnover of the whole country.

Import: Import of the FDI sector was estimated at nearly US$ 101.45 billion, up 17.9% over the same period and accounting for 65.5% of the import turnover of the whole country.

Generally, in the first 5 months of 2022, the foreign investment sector had a trade surplus of over 13.8 billion USD including crude oil and a trade surplus of nearly 12.9 billion USD excluding crude oil. Meanwhile, the domestic business sector had a trade deficit of over 12.3 billion USD.

1.2. Investment registration status

As of May 20, 2022, the total newly registered capital, adjusted capital and contributed capital to buy shares of foreign investors reached over USD 11.71 billion, equaling 83.7% compared to the same period in 2021. new registrations continued to decline, but both adjusted investment capital and GVMCP increased sharply over the same period. Specifically:

Newly registered capital: There are 578 new projects granted IRC (down 5.7% over the same period), the total registered capital is nearly 4.12 billion USD (down 53.4% ​​over the same period[1]) .

Adjusted capital: There were 395 times of projects registered to adjust investment capital (up 15.5% over the same period), the total additional registered capital reached over USD 5.61 billion (up 45.4% over the same period). period).

Capital contribution and share purchase: There were 1,339 joint ventures by foreign investors (down 5.8% over the same period), the total value of capital contribution reached over US$1.98 billion (up 51.6% over the same period).

2. Investment partner:

In the first 5 months of 2022, 79 countries and territories have invested in Vietnam. In which, Singapore leads with a total investment of nearly 3 billion USD, accounting for 25.3% of total investment capital in Vietnam. , down 43.8% over the same period in 2021[2]; Korea ranked second with over 2.06 billion USD[3], accounting for 17.6% of total investment capital, up 12.6% over the same period. With a large-scale Lego project with a total investment of over 1.3 billion USD, Denmark continues to rank third with a total registered investment capital of nearly 1.32 billion USD, accounting for 11.3% of the total investment capital. private. Followed by China, Japan, Hong Kong.

According to the number of projects, Korea is still the partner with investors' interest and making new investment decisions as well as expanding investment projects and GVMCP the most in the first five months of 2022 (accounting for 19.4% of the total number of projects). number of new projects, 33.9% of adjustments, and 36.7% of GVMCPs)

3 investment area:

[source of pic: FIA Vietnam]

Foreign investors have invested in 48 provinces and cities across the country in the first 5 months of 2022. Binh Duong leads the way with a total registered investment capital of over 2.52 billion USD, accounting for 21.5% of total registered investment capital. signed and nearly 2.3 times higher than the same period in 2021[4]. Bac Ninh ranked second with a total investment capital of nearly 1.65 billion USD, accounting for 14.1% of total capital[5]. Ho Chi Minh City ranked third with a total registered investment capital of over 1.3 billion USD, accounting for 11.3% of total capital and a slight decrease of 1.1% compared to the same period in 2021. Followed by Thai Nguyen, Hai Phong, Hanoi,…

In terms of the number of new projects, foreign investors still focus on investing a lot in big cities with convenient infrastructure such as Ho Chi Minh City. Ho Chi Minh, Hanoi. In which, Ho Chi Minh City leads in the number of new projects (40.3%), the number of CPVs (67.9%) and is the second in the number of projects with capital adjustment (13.69 after Hanoi is nearly 5 times). 17%).

Conclusion:

- Realized investment capital of foreign investment projects in the first 5 months of 2022 increased by 7.8% compared to the same period in 2021. With the continuous and effective support of the Government and functional agencies, together with With the efforts of the business community to overcome the pandemic and adapt to the new situation, businesses continue to recover, maintain and expand their production and business activities.

- Adjustment of capital and capital contribution, share purchase, and purchase of capital contribution by foreign investors continued to increase over the same period. Many projects of manufacturing and manufacturing electronic and high-tech products have expanded their capital on a large scale[6] in the first 5 months of the year.

- Newly registered investment capital continued to decrease, reducing the total investment capital in 5 months (down 16.3%). The number of new investment projects decreased slightly in 5 months (down 5.7%) after continuously increasing in the first 4 months of the year, but the number of projects with capital adjustment still increased by 15.5% over the same period. Despite the adverse effects of the Covid-19 pandemic, foreign investors still put their faith in the economy and investment environment of Vietnam and make investment decisions to expand existing projects.

- Exports of the FDI sector increased in the first 5 months of the year and increased strongly in 4 months. The foreign investment sector had a trade surplus of over 13.8 billion USD including crude oil, contributing to offsetting the trade deficit of over 12.3 billion USD of the domestic business sector, so the country had a trade surplus of about 1.5 billion USD in the first quarter of this year. the first 5 months of the year.

- The Russian-Ukrainian conflict does not have a significant direct impact on foreign investment in Vietnam because Russian and Ukrainian investments account for only a small proportion of total investment in Vietnam (accounting for 0.23% of total investment capital). private). However, in the medium and long term, the conflict may lead to the trend of investment shifting out of Russia and Ukraine to Asian countries. In which, Vietnam can also benefit from this shift of investment capital. However, this trend is not yet clear.

 

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