Vietnam FDI in 2024

How is Vietnam FDI (foreign direct investment) like in the first half of 2024? We look into the following for the Vietnamese market:

• Vietnam’s Current 2024 FDI Landscape
• Top 5 FDI Industries (1^st half of 2024)
• Top 6 FDI Countries (1^st half of 2024)
• Top 6 FDI receiving cities/provinces (1^st half of 2024)

Vietnam’s Current FDI landscape (2024)

Foreign investors continue to view Vietnam as a favorable investment destination, driven by the country’s economic recovery and ongoing initiatives to support foreign investment.

According to the Foreign Investment Agency of the Ministry of Planning and Investment (MPI), the foreign direct investment in Vietnam[1] in the first half of 2024 reached 15.2 billion USD, representing a 13.1% increase compared to the same period in 2023. The implemented capital was 10.8 billion USD, 71% of the registered capital, and an 8.2% increase compared to the same period in 2023.

1,538 projects with a total registered capital of 9.5 billion USD received the Investment Registration Certificate (IRC), an 18.9% increase in the number of projects and 46.9% in total newly registered capital compared to the same period in 2023. There were fewer adjustments (6.3% less than 1^st half of 2023) but the total value of capital increase adjustment was 35% higher in 1^st half of 2024.

[1] FDI includes capital registration, adjusted capital and capital contributions, and share purchases of foreign investors.

Vietnam’s Top 5 FDI Industries (as of 2024 1^st half)

1. Processing and manufacturing
2. Real estate business activities
3. Wholesale and retail trade; repair of automobiles
4. Professional, scientific, and technological activities
5. Transportation and warehousing

The top 3 industries with the highest FDI in Vietnam accounted for 90.7% of the total FDI value. Processing and manufacturing attracted the most FDI investment with a total value of 10.7 billion USD, a 26.3% increase year-on-year, accounting for 70.4% of the FDI in Vietnam. Real estate business activities are the 2^nd most attractive industry for foreign investors, receiving 2.5 billion USD and 61.5% year-on-year increase. While still lower in the total FDI value, industries such as other service activities, health and social support activities, and agriculture/forestry/fisheries have seen more foreign interest with significant year-on-year growth.

Vietnam’s Top 6 FDI Countries (as of 2024 1^st half)

1. Singapore
2. Japan
3. Hong Kong
4. South Korea
5. China
6. Taiwan

Among 84 countries invested in Vietnam, Singapore, Japan, Hong Kong, South Korea, China, and Taiwan have the highest FDI value, each with over 1 billion USD within the 1^st half of 2024, making up 84.3% of the total FDI to Vietnam. The FDI from Singapore reached 5.6 billion USD, an 86.0% increase year-on-year, making up a third (36.7%) of the total FDI in Vietnam. Both Japan and Hong Kong accounted for around 11.4% of total FDI with 1.7 billion USD each; however, the year-on-year value of Japan decreased by 21.6% while that of Hong Kong increased by 83.8%.

Vietnam’s Top 6 FDI Receiving Cities/Provinces (as of 2024 1^st half)

1. Bac Ninh
2. Ba Ria – Vung Tau
3. Quang Ninh
4. Hanoi
5. Hai Phong
6. Ho Chi Minh City

By province, Bac Ninh, Ba Ria – Vung Tau, Quang Ninh, Hanoi, Hai Phong, and Ho Chi Minh City attracted over 1 billion USD of FDI investment; the amount of FDI investment that these 6 cities and provinces received accounted for 58.7% of the Vietnam’s total FDI. Bac Ninh attracted the highest total FDI value, 2.6 billion USD (17.0% of the total FDI in Vietnam), over three times increase year-on-year. Bac Ninh is a processing and manufacturing hub in the Northern region. The FDI value in Ba Ria–Vung Tau of 1.5 billion USD accounted for 10.1% of the total FDI in Vietnam. The FDI in Ba Ria–Vung Tau was only 125 million USD for the 1^st half of 2023. Most of the investment in Ba Ria–Vung Tau in the 1^st half of 2024 was newly registered capital. The province is the hub for international maritime shipping in Vietnam.

Conclusion of current Vietnam FDI

Foreign investment in Vietnam is expected to continue to grow in 2024 with the expectation to reach 40 billion USD for the whole year. The country harbors tremendous opportunities for foreign investors in all industry sectors.

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