Positive signs in FDI inflows in H1

Despite a 4.3% reduction in the volume of foreign investment inflows into Vietnam in the first half of the year, experts said there are positive signs when looking into the structure of the investment.

Producing electronic components at the Indian-funded Minda Vietnam Auto Components Co., Ltd in Vinh Phuc province

Out of more than 13.43 billion USD worth of foreign investment poured into Vietnam in the first six months of this year, newly-registered capital reached almost 6.5 billion USD, accounting for 48.3% of the total, up 31.3% year on year.

The value of capital contribution and share purchase deals surged 79% to over 4 billion USD, accounting for 29.9%.

Only additional capital for existing projects showed a reduction of 57.1%, but the number of projects raising their capital went up 29.8%.

General Director of the General Statistics Office (GSO) Nguyen Thi Huong said those figures reflect the confidence of foreign investors in the stable macro economic policy and safe investment environment in Vietnam.

New projects are still concentrated in localities with advantages in investment attraction, good infrastructure, stable human resources, drastic efforts in administrative reform and dynamic investment promotion, such as Hanoi, Ho Chi Minh City, Bac Giang, Binh Duong, Hai Phong, Bac Ninh and Dong Thap.

Hanoi was the leading destination of foreign investors in the reviewed period with 2.26 billion USD, higher than the figure of the entire 2022. 

HCM City also recorded a surge in the number of new FDI projects (69.1%) and a 3.6-time increase in capital contribution and share purchase.

With high expectation about FDI attraction this year, Director of the Foreign Investment Agency Do Nhat Hoang said the country will continue to improve its business and investment environment, focusing on administrative procedures following licensing, and issue policies to attract investment into fields with great potential for breakthroughs such as high technology, semiconductor and innovation./.

VNA