Vietnam's foreign direct investment (FDI) has seen a significant upsurge in the first two months of 2024, with a year-on-year increase of 38.6%. This positive trend indicates growing foreign investor confidence in the Vietnamese economy.
The data, released by the Foreign Trade Agency, reveals that Vietnam attracted a total of $4.29 billion in FDI during this period. This substantial growth is attributed to several factors, including a series of large-scale project approvals in February. Notable examples include the Trina Solar Cell project in Thai Nguyen province and the Gokin Solar Hai Ha Vietnam project in Quang Ninh. These significant investments highlight Vietnam's attractiveness for renewable energy ventures.
Beyond large-scale projects, a notable trend is the rise of FDI in Vietnam's southern key economic region. This area has witnessed a surge in investments focused on labor-intensive industries alongside projects that incorporate new and environmentally friendly technologies. This diversification in investment focus bodes well for Vietnam's economic development, promoting job creation while fostering sustainable practices.
Among Vietnamese localities, Dong Nai province emerged as the leading recipient of FDI in the first two months of 2024. The province attracted $439 million spread across 27 foreign-invested projects. This strong showing underscores Dong Nai's appeal to foreign investors, likely due to its well-developed infrastructure and favorable business environment.
Looking at the investor profile, Vietnam continues to see strong participation from traditional Asian partners. Singapore, Hong Kong, Japan, China, and South Korea remain the top sources of FDI, contributing a combined total of 77% of new investment projects and nearly 85.5% of the total registered investment capital nationwide. This sustained interest from established Asian investors reinforces Vietnam's position as a prime destination within the region.
The robust FDI growth in the first two months of 2024 presents a positive outlook for Vietnam's economy. This surge in foreign investment is expected to contribute to job creation, infrastructure development, and technological advancement within the country. As Vietnam strives to maintain this momentum, continued efforts to improve its business environment, invest in infrastructure, and prioritize a skilled workforce will be crucial in attracting and retaining foreign investors.