FDI capital into Vietnam recovered after Covid-19

Like in many countries around the world, FDI enterprises in Vietnam are facing many difficulties due to the epidemic. However, the latest developments have proved that Vietnam is quickly controlling the epidemic and is still an increasingly attractive destination for investors.


According to updated data from the Ministry of Planning and Investment, as of November 20, 2021, the total new registered capital, adjusted and contributed capital, share purchase, repurchase of capital contributions of foreign investors reached 26.46 billion USD, 0.1% higher than the same period in 2020.

In 11 months of 2021, 1,577 new projects were granted Investment registration certificates (decrease by 31.8%). While total registered capital reached nearly 14.1 billion USD (up 3.76% over the same period).

Accordingly, there were 877 projects registered to adjust investment capital (down 16.6%), total registered capital increased to over 8 billion USD (up 26.7% over the same period). At the same time, there were 3,466 repurchases of capital contributions from foreign investors (down 40.4%), the total value of capital contributed reached nearly 4.4 billion USD (down 33% over the same period).

cơ cấu đầu tư nước ngoài 11 tháng năm 2021

After 11 months, it is estimated that foreign investment projects have disbursed US$17.1 billion, down 4.2% compared to the same period in 2020 and slightly down 0.1% compared to 10 months of 2021.

Previously, accumulated 10 months, the disbursement rate of foreign investment projects also decreased by 4.1% over the same period and decreased by 0.6 percentage points compared to statistics of 9 months.

About industries

During the period, investors invested in 18 of the 21 economic sectors. In particular, the processing and manufacturing industry continues to lead with a total investment capital of over 14 billion USD, accounting for 53% of the total registered investment capital.

Although the electricity production and distribution industry, although attracting several new and adjusted projects as well as the repurchase of capital contributions of foreign investors, do not have a large project size, it should rank second with a total investment of over 5.7 billion USD, accounting for 21.6% of the total registered investment capital.

This was followed by real estate, wholesale and retail businesses with total registered capital of $2.41 billion and $1.27 billion, respectively.

In terms of the number of new projects, the manufacturing and wholesale industries, professional activities and science and technology are the industries that attract the most projects, accounting for 30.5% and 16.5% of total projects.

About investment locals

Long An continues to lead with a total registered investment capital of US $3.76 billion, accounting for 14.2% of the total registered investment capital. Singapore’s gas power project alone amounted to the US $3.1 billion (accounting for 82.4% of Long An’s total investment).

Ho Chi Minh City ranked second with nearly 3.43 billion USD, accounting for merely 13% of the total investment capital, an increase of 700 million USD compared to the next month.

Hai Phong ranked third with a total registered capital of over US $2.8 billion, accounting for 10.7% of total investment capital. Before that, by the end of September, Hai Phong had surpassed TP. Ho Chi Minh City came in second with a total registered capital of $2.7 billion (12.2%), thanks to LG Display’s large capital adjustment project of $1.4 billion.

The next localities are Binh Duong, Can Tho, Quang Ninh,…

In terms of the number of projects, investors still aim for large cities, with sustainable infrastructures such as Ho Chi Minh City, Hanoi, and Bac Ninh. Ho Chi Minh City leads both in the number of new projects (36%), the number of adjusted projects (18.5%), and the repurchase of capital contributed by foreign investors (59.6%). Hanoi is not in the top 5 localities attracting foreign investment projects but ranked second in the number of new projects (21.8%) and the number of Repurchases of capital contribution by foreign investors (12.5%).

The fourth wave of the pandemic has raised concerns among the international business community. But FDI enterprises have chosen Vietnam for long-term investment and investments that take time to take effect, while the outbreak has only recently erupted. Jeffries said it was “a bit early” to issue warnings about new trends in the medium- and long-term supply chain. Vietnam remains an attractive destination for attracting foreign investment, continuing to benefit from the changing global supply chain, disrupting production in other regions, said Andrew Jeffries.