Overview of Foreign Investment

According to the latest statistical data, Vietnam attracted a total of $24.78 billion in foreign investment during the first nine months of 2024, representing an 11.6% year-on-year increase. This figure encompasses three forms of investment: newly registered projects, capital increases in existing projects, and foreign capital contributions and share purchases.

Analysis of Investment Forms

Among the various investment forms, newly registered projects and capital increases in existing projects showed notable performance. Investments in new projects increased by 11.3% year-on-year, while capital increases in existing projects achieved a remarkable growth of over 48%. However, foreign capital contributions and share purchases experienced a decline of more than 26%.

Realized Investment Capital

Significantly, the realized capital of foreign investment projects in the first nine months of 2024 is estimated to exceed $17.3 billion, marking a nearly 9% increase year-on-year. This figure represents the highest level in the past five years, reflecting growing confidence among foreign investors in Vietnam’s investment environment.

Geographic Distribution of Investments

According to the Ministry of Planning and Investment’s assessment, foreign investments are primarily concentrated in provinces and cities with well-developed infrastructure, stable human resources, and significant administrative procedure reforms. Ten localities, including Bac Ninh, Ho Chi Minh City, Quang Ninh, Ba Ria-Vung Tau, Binh Duong, Hanoi, Hai Phong, Dong Nai, Bac Giang, and Ninh Thuan, attracted over 80% of newly registered projects nationwide in the nine-month period, accounting for nearly 73% of the invested capital.

Key Investment Sectors

In the first nine months of 2024, Vietnam attracted substantial foreign investments in sectors such as semiconductors and energy. Large-scale projects in battery production, photovoltaic cells and silicon ingots, as well as components, electronic products, and high value-added products, received new investments and capital expansions.

Expert Insights

Financial economist Dinh Trong Thinh emphasized that realized capital is a crucial indicator for assessing the attractiveness of foreign investment. He highlighted Vietnam’s main advantages in attracting foreign investment, including political and social stability, rapid regional integration, and 19 signed Free Trade Agreements (FTAs). Thinh also stressed that foreign investment not only brings financial resources but, more importantly, introduces high technology, contributing to faster and more sustainable economic growth in Vietnam.

Key Takeaways:

• Vietnam attracted $24.78 billion in foreign investment in the first nine months of 2024, up 11.6% year-on-year, demonstrating the country’s increasing investment appeal.
• Newly registered projects and capital increases showed strong performance, growing by 11.3% and over 48% respectively, reflecting investors’ confidence in the Vietnamese market.
• Realized capital of foreign investment projects exceeded $17.3 billion, reaching a five-year high, indicating the stability and attractiveness of Vietnam’s investment environment.
• Foreign investments are primarily concentrated in provinces and cities with well-developed infrastructure and stable human resources, with 10 key regions attracting nearly 73% of invested capital.
• High-tech sectors such as semiconductors and energy have become focal points for foreign investment, contributing to Vietnam’s technological advancement and sustainable economic development.

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