Nine Months of Investment Draws US$20 Billion to Vietnam

In the first nine months of the year, Vietnam saw a 7.7% increase in foreign direct investment (FDI) from the same period last year, reaching a total of US$20.21 billion.

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Vietnam Lures over US$20 Billion in FDI in Nine Months

FDI inflows to Vietnam have reached over $20 billion in the first nine months of the year, according to the Foreign Investment Agency. This includes $10.23 billion from 2,254 newly registered projects, a rise of 66.3% in the number of projects and 43.6% in capital. In addition, $5.15 billion was added to 934 existing projects, and the value of capital contributions and share purchase deals reached over $4.82 billion.

Despite a slight decrease in the growth rate, FDI disbursement saw positive signs, reaching over $15.9 billion, up 2.2% on-year. Experts attribute these positive signs to the Government’s effective solutions in supporting enterprises and removing difficulties to facilitate further FDI disbursement.

Vietnam Lures over US$20 Billion in FDI in Nine Months

Since the signing of the EU-Vietnam Free Trade Agreement (EVFTA) in 2019, European enterprises have invested in 2,250 projects worth $26 billion in Vietnam. The number of projects registering to adjust their investment capital has also increased, demonstrating foreign investors’ trust in the country’s investment climate.

The processing and manufacturing industry received the largest share of investment capital, followed by the real estate sector and the finance-banking sector. Singapore, China, and Japan were the top countries investing in Vietnam.

Nearly 1,000 foreign enterprises from 28 countries and territories, including giants such as Boeing, Walmart, and Central Retail, have entered Vietnam to explore investment opportunities and seek partners. Walmart, for example, has deployed procurement teams to Vietnam to explore sourcing opportunities in various product categories.

Coffee capsule production line of Nestlé Việt Nam.

Decathlon Vietnam Group is expanding its textile product supply and is interested in businesses that meet specific conditions related to environmental sustainability. Central Retail Group has offered technical assistance to cultivate organic honeydew melons in Vietnam.

Vietnam’s strategic location, stable economy, young workforce, and favorable policies make it an increasingly important destination in the global supply chain. Since the EVFTA signing, European enterprises have invested $26 billion in Vietnam. Leading US corporations such as Apple, Qualcomm, and Google are also investing in Vietnam.

Boeing is exploring opportunities to expand its investment in Vietnam, taking advantage of the country’s production costs and improving supporting industry. To attract more sustainable investment, consistent investment incentive policies are necessary to reassure investors about long-term business operations in Vietnam.