Slowdown in Vietnam’s Outbound Investment Activities

According to data from the General Statistics Office of Vietnam, as of August 2024, Vietnam’s total outbound investment reached $147 million, marking a 64.6% year-on-year decline. This significant drop reflects the challenges posed by both global and domestic economic conditions. However, experts emphasize that this decline is likely temporary and does not indicate a long-term change in Vietnam’s investment strategies.

Breakdown of Investment by Sector

During the first eight months of 2024, Vietnam’s outbound investments were spread across 14 different sectors. The mining sector attracted the highest investment, totaling $58.6 million, which accounted for 39.8% of the total. The manufacturing and processing sector followed with $29.1 million, representing 19.7%. Other noteworthy sectors include wholesale, retail, and repair of automobiles and motorcycles, which received $24.7 million (16.8%), and the technology sector, which secured $20 million, accounting for 13.6% of the total outbound investment.

Key Investment Destinations

In the first eight months of 2024, Vietnamese enterprises invested in 25 countries and regions. While traditional markets remain a primary focus for Vietnamese investors, recent years have seen an increasing interest in newer markets. The Netherlands emerged as the leading destination, with a total investment of $54.6 million, accounting for 37.1% of Vietnam’s outbound investment. Laos ranked second, receiving $37.8 million (25.7%). The United Kingdom and the United States followed with investments of $19.8 million and $18.6 million, representing 13.4% and 12.7% of the total, respectively. Cambodia and New Zealand also received significant investments, amounting to $16.6 million (11.3%) and $5.9 million (4%).

Vietnamese Companies Accelerating Global Expansion

Leading Vietnamese enterprises, including Vingroup, TH, FPT, and Vinamilk, have announced plans to expand their overseas investments. These companies are actively exploring new opportunities in resource-rich and high-potential markets, despite the recent slowdown. Their expansion efforts underscore Vietnam’s continued focus on global market penetration and investment diversification.

Key Takeaways：

1. Vietnam’s outbound investment declined in the first eight months of 2024, but this trend is expected to be temporary.
2. The mining and manufacturing sectors remain the primary focus of Vietnamese outbound investment, reflecting the country’s emphasis on resources and production.
3. The Netherlands, Laos, the UK, and the US have emerged as key markets for Vietnamese investment, highlighting efforts to diversify beyond traditional destinations.
4. Leading Vietnamese enterprises are accelerating their global expansion, demonstrating their commitment to long-term international growth strategies.
5. Despite economic uncertainties, Vietnam’s potential for outbound investment remains strong, particularly in emerging markets.

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