Viet Nam reached more than US$14 billion in foreign direct investment (FDI) in the first six months of 2022, announced the Ministry of Planning and Investment (MPI).

MPI’s data showed that as of June 20, 2022, the total newly registered capital, adjusted and contributed capital to buy shares, buy contributed capital of foreign investors reached $14.03 billion, as much as 91.1 per cent over the same period in 2021.

Of which, 752 new projects were granted investment registration certificates, down 6.5 per cent compared to the same period, with a total registered capital of over $4.94 billion, down 48.2 per cent over the same period.

In addition, there were 487 projects registering to adjust their investment capital, up 5.9 per cent over the same period, with the total additional registered capital reaching nearly $6.82 billion, up 65.6 per cent compared to the same period last year.

There were also 1,707 capital contributions and share purchases by foreign investors in the first half, down 8 per cent over the same period, with the total value of contributed capital reaching over $2.27 billion, up 41.4 per cent over the same period last year.

MPI’s Foreign Investment Agency said that although newly registered capital has not fully recovered after the interruption of anti-pandemic measures in 2021, adjusted capital, capital contribution and share purchases have continued to increase sharply at 65.6 per cent and 41.4 per cent respectively.

The Foreign Investment Agency said though adjusted capital decreased in March and May, the remaining months increased sharply with an increase ranging from 90 per cent to nearly 4.7 times compared to the same months of 2021.

In the first six months of 2022, foreign investors poured funds into 18 industries out of a total of 21 national economic sectors. Of which, the processing and manufacturing industry continued to lead with a total investment of nearly $8.84 billion, accounting for nearly 63 per cent of the total registered investment capital. The real estate sector ranked second with total investment capital of more than $3.15 billion, accounting for 22.5 per cent of total registered investment capital.

Next came information and communication industries, scientific and technological activities with total registered capital of nearly $442.6 million and $408.5 million respectively.

However, in terms of the number of new projects, wholesale, retail, processing, manufacturing and scientific and technological professional activities were the industries that attracted the most projects, accounting for 30.1 per cent, 25.4 per cent and 16.5 per cent of the total projects, respectively.

Regarding investment partners, 84 countries and territories invested in Viet Nam in the first six months of this year. Among which, Singapore led with a total investment capital of more than $4.1 billion, accounting for 29.5 per cent of total investment capital in Viet Nam. South Korea ranked second with over $2.66 billion, accounting for nearly 19 per cent of total investment capital.

By investment location, foreign investors invested in 49 provinces and cities across the country in the first six months of 2022. Binh Duong led the way with a total registered investment capital of more than $2.53 billion, accounting for 18 per cent of total registered investment capital and up 98.2 per cent over the same period in 2021. HCM City ranked second with a total investment capital of more than $2.2 billion, accounting for 15.8 per cent of the total capital, up 55.2 per cent over the same period.

According to the Foreign Investment Agency, realised investment capital of foreign investment projects in the first six months of 2022 increased by 8.9 per cent compared to the same period in 2021. That shows that enterprises are constantly recovering, maintaining and expanding production and business activities.

Accumulated to June 20, 2022, the whole country has 35,184 valid projects with a total registered capital of over $427.97 billion. The accumulated realised capital of foreign investment projects is estimated at nearly $261.66 billion, equaling 61.1 per cent of the total valid registered investment capital.

A representative of the Foreign Investment Agency further said: "The Russia-Ukraine conflict does not have a significant direct impact on foreign investment in Viet Nam because the investment of Russia and Ukraine only accounts for a small proportion of the total investment capital, accounting for 0.23 per cent of total investment capital, but has an indirect effect through high prices and causes supply chain disruptions."

However, in the medium and long term, the conflict could lead to a trend of shifting investment out of Russia and Ukraine to Asian countries. Viet Nam can also benefit from this shift in investment capital. However, this trend is not yet clear. — VNS