Investment inflows reach a five-year peak at $15.4 billion over eight months

Vietnam's foreign direct investment (FDI) disbursement reached a five-year high of US$15.4 billion in the January-August period, according to the National Statistics Office (NSO). This figure represents an 8.8% increase from the same period last year.

The total registered FDI for the reviewed period was $22.48 billion, with $10.65 billion in additional capital disbursed. This marks the highest level for an eight-month period in five years.

The manufacturing and processing industry attracted the largest share of the total FDI, with $12.57 billion, accounting for 81.6% of all disbursed FDI. The sector was also the top choice for new projects, accounting for 59.2% of new registered capital.

The manufacturing and processing industry's strong showing is particularly notable in the semiconductor sector. Singapore was the largest investor in Vietnam during the reviewed period, with $3.06 billion in investments. The strongest Singaporean investors in manufacturing and processing in Vietnam are primarily in the semiconductor industry, represented by SSIA member companies such as Hitachi High Tech, MFSG Pte. Ltd, Emerson, Innogrity, Curve Semiconductor, Hitec Innovative Technologies, and Bitsilica. These companies are active in semiconductor production and supply chains.

The real estate sector received the second-largest share of FDI, with $1.24 billion, or 8% of the total. The electricity, gas, and water production and distribution sector received $563.6 million in FDI, accounting for 3.7% of the total.

The number of new projects licensed in Vietnam during the reviewed period was 2,534. Newly licensed projects accounted for $11.03 billion in the total registered FDI. Capital contributions and share purchases for the reviewed period were $4.46 billion.

Overall, Vietnam's strong FDI performance in the first eight months of the year is a positive sign for the country's economic growth and development. The government will continue to focus on creating a favourable investment environment to attract more foreign investors and promote sustainable economic development.