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  3. VIETNAM'S FDI IN MAY 2024: ADJUSTED CAPITAL REACHES IMPRESSIVE GROWTH - OTIS LAWYERS

VIETNAM'S FDI IN MAY 2024: ADJUSTED CAPITAL REACHES IMPRESSIVE GROWTH - OTIS LAWYERS

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According to the Foreign Investment Agency under the Ministry of Planning and Investment, in May, registered foreign investment saw the largest increase of the early months of 2024, exceeding $800 million. This represents 2.8 times the amount in April, 72% more than in March, 4.1 times the amount in February, and over 3.6 times the amount in January.

vietnam-s-fdi-in-may-2024-adjusted-capital-reaches-impressive-growth-otis-lawyers (1).jpg
Foreign Investment in the First Five Months of 2024

As of May 20, the total registered capital, including new registrations, adjustments, and contributions through share purchases and capital contributions (GVMCP) by foreign investors, reached over $11.07 billion, a 2% increase compared to the same period in 2023. The realized capital for foreign investment projects is estimated at approximately $8.25 billion, marking a 7.8% increase compared to the same period in 2023.

Positive signals were also noted in new registered capital, with 1,227 projects receiving investment registration certificates, a 27.5% increase compared to the same period, and the total registered capital reaching nearly $7.94 billion (a 50.8% increase compared to the same period).

Nationwide, there are 40,285 valid projects with a total registered capital of $481.33 billion. The cumulative realized capital for foreign investment projects is estimated at about $305.43 billion, which is nearly 63.5% of the total effective registered investment capital.

Regarding import and export activities in the first five months of 2024, exports including crude oil are estimated at over $112.88 billion, a 13.1% increase compared to the same period, accounting for 72.1% of the total export turnover. Exports excluding crude oil are estimated at $111.83 billion, a 13% increase compared to the same period, accounting for 71.5% of the country's total export turnover.

vietnam-s-fdi-in-may-2024-adjusted-capital-reaches-impressive-growth-otis-lawyers (2).jpg
Structure of Foreign Investment in the First Five Months of 2024 by Sector

Foreign investors have invested in 17 out of the 21 national economic sectors. The processing and manufacturing industry leads with a total investment of over $7.43 billion, accounting for 67.1% of the total registered investment, an 11.9% increase compared to the same period last year.

The real estate business sector ranks second with a total investment of nearly $1.98 billion, making up almost 17.9% of the total registered investment, marking a 70.8% increase compared to the same period last year. Following this are the wholesale and retail sectors, and the transportation and warehousing sectors, with total registered investments of over $514.2 million and nearly $342.2 million, respectively. The remaining investments are distributed among other sectors.

In terms of the number of projects, the processing and manufacturing industry leads in the number of new projects (accounting for 35.9%) and capital adjustments (accounting for 62.3%). The wholesale and retail sector leads in the number of GVMCP transactions (accounting for 43.4%).

For any questions or comments, please contact:

OTIS AND PARTNERS LAW FIRM

Office address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, Hanoi

Email: [email protected]

Hotline: 0987748111

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