Vietnam’s Q1 FDI Shows Strong Growth

Vietnam has witnessed a remarkable uptick in foreign direct investment (FDI) during the first quarter of the year, reaching nearly $6.2 billion — an impressive 13% increase compared to the same period last year.

According to data released by the Foreign Investment Agency under the Ministry of Planning & Investment, by March 20, a total of 644 projects had registered new capital amounting to over $4.7 billion, showcasing a substantial surge of almost 58% from the previous year.

March was particularly active, with a flurry of capital adjustments and share purchases alongside an increase in new investment projects. However, despite this activity, the overall rise in investment capital for the month was slightly lower than in February, primarily due to the absence of major projects.

The positive trend in disbursed capital was also evident, with figures exceeding $4.6 billion for the quarter—a notable increase of over 7% compared to the previous year. In total, FDI injections into Vietnam amounted to nearly $6.2 billion in the first three months.

The manufacturing and processing sector continued to be the primary magnet for FDI, attracting over $3.9 billion, which accounts for almost 64% of the total foreign capital inflow. Real estate and retail sectors closely followed suit.

Significantly, the quarter also witnessed substantial projects in sectors such as energy, component manufacturing, and electronics products, which either received fresh investments or expanded their existing capital.

In terms of investor origins, Vietnam saw contributions from 62 countries and territories in the first quarter. Singapore retained its top spot as the leading investor, with a total investment capital of over $2.5 billion—a remarkable increase of more than 51% compared to the same period last year. Following closely behind was Hong Kong, with an investment of $1.05 billion.

The concentration of foreign capital remained strong in regions boasting significant advantages, such as robust infrastructure, skilled labor force, and efficient administrative procedures.

Major cities like Hanoi, Ho Chi Minh City, Haiphong, Bac Ninh, and Quang Ninh continued to attract the lion’s share of new projects, accounting for 75% of the total projects and 78% of the total investment capital nationwide.