Foreign investment inflows, outflows see strong growth

Total registered foreign direct investment (FDI) in Vietnam as of January 31, 2025, reached $4.33 billion, up 48.6 percent year-on-year, according to data released this morning, February 6.

sxcn-5152-1257.jpg.jpg

Total registered foreign direct investment (FDI) in Vietnam as of January 31, 2025, including newly registered capital, adjusted capital, and capital contributions or share purchases by foreign investors, reached $4.33 billion, up 48.6 percent year-on-year, according to data released this morning, February 6.

Specifically, 282 new projects were licensed with a total registered capital of $1.29 billion, down 6.6 percent in the number of projects and 43.6 percent in registered capital compared to the same period last year.

Among sectors, manufacturing and processing attracted the highest newly registered FDI, totaling $869.7 million and accounting for 67.6 percent of the total. The real estate sector followed with $248.5 million, representing 19.3 percent, while other industries received $168.7 million, making up 13.1 percent.

Among the 33 countries and territories with newly licensed projects in Vietnam in January 2025, China was the largest investor, committing $380.3 million, or 29.5 percent of total new registered capital. Singapore followed with $372.3 million (28.9 percent), Hong Kong (China) with $103.6 million (8.1 percent), the United States with $98.4 million (7.6 percent), and Japan with $52.1 million (4.1 percent).

For adjusted capital, 137 previously licensed projects registered an additional $2.73 billion in investment, 6.1 times higher than the same period last year.

Including both newly registered and adjusted capital, total FDI in the manufacturing and processing sector reached $2.96 billion, accounting for 73.7 percent of the total. The real estate sector attracted $1 billion, making up 25.1 percent, while other industries received $47.5 million, or 1.2 percent.

Foreign investors also made 260 capital contributions and share purchases worth a total of $322.9 million, up 70.4 percent year-on-year. This included 92 transactions that increased the charter capital of enterprises, with capital contributions amounting to $176.8 million, while 168 transactions involved foreign investors purchasing shares without increasing charter capital, totaling $146.1 million.

For capital contributions and share purchases, investment in professional, scientific, and technological activities accounted for $136.8 million (42.4 percent), manufacturing and processing $132.9 million (41.1 percent), and other sectors $53.2 million (16.5 percent).

Implemented FDI in Vietnam in January 2025 was estimated at $1.51 billion, up 2 percent year-on-year.

On the other hand, Vietnamese businesses received licenses for ten new outbound investment projects in January, with a total registered capital of $83 million, 5.1 times higher than the same period last year.

Vietnamese investments went to eight countries, with the Philippines leading at $32.7 million (39.4 percent), followed by Indonesia with $31.1 million (37.4 percent) and Laos with $18.6 million (22.3 percent).

January IIP decreases by 9.2 percent

Vietnam's industrial production index (IIP) for January 2025 was estimated to decrease by 9.2 percent compared to December 2024, but increased by 0.6 percent year-on-year.

The General Statistics Office (GSO) attributed the month-on-month decline, reported on February 6, to the Lunar New Year holiday, which fell in January this year, resulting in fewer working days compared to both the previous month and January 2024.

While the overall IIP showed a slight year-on-year increase, performance varied across sectors. The processing and manufacturing sector saw a 1.6-percent increase compared to January 2024, while electricity production and distribution rose by 0.4 percent, and water supply, waste management, and wastewater treatment activities increased by 9.2 percent. However, the mining sector experienced a 10.4-percent decline.

Regionally, 47 localities saw their IIP increase compared to the same period last year, while 16 experienced a decrease. Strong growth in processing and manufacturing, and electricity production and distribution, drove positive results in some areas. Conversely, weaker performance in these same sectors, along with mining, contributed to declines or slower growth in other regions.

Several key industrial products saw increased output compared to January 2024, including automobiles, televisions, NPK mixed fertilizers, natural fiber fabrics, fresh milk, milk powder, and clothing. Conversely, production decreased for clean coal, phone components, motorbikes, and refined sugar.

As of January 1, 2025, the number of employees in industrial enterprises was up 0.2 percent compared to the previous month and 4.5 percent higher than the same time last year. Employment in the mining sector rose 0.3 percent month-on-month but remained unchanged year-on-year. The processing and manufacturing sector saw employment increase by 0.2 percent month-on-month and 4.9 percent year-on-year.

Employment in electricity, gas, steam, and air conditioning production and distribution increased by 0.1 percent month-on-month and 0.2 percent year-on-year. The water supply, waste management, and wastewater treatment sector saw no month-on-month change but a 1.1-percent increase year-on-year.

Other news