According to the Vietnamese Foreign Investment Agency, foreign direct investment (FDI) into Vietnam in the first nine months of 2023 (based on approved investment, preliminary figures as of September 20, excluding investment in shares and stock acquisitions) increased by 50.1% in terms of the number of projects and decreased by 0.6% in terms of the amount of approved investment, totaling 3,188 projects (up 50.1% from the same period last year) and $1.538 billion (down 0.6% from the same period last year). China’s investment increased by more than twice the amount in terms of both the number of projects and the amount of investment, indicating a trend of Chinese companies expanding production in Vietnam.

In terms of industry, manufacturing was the top sector in terms of both the number of projects and the amount of approved investment, with 1,261 projects (up 55.1% from the same period last year) and $1.277 billion (up 12.0% from the same period last year). The largest project was the expansion investment by LG Innotek, a subsidiary of South Korea’s LG Group, in Hai Phong City in the north (US$1 billion). The company is expected to build a third factory and create 3,000 new jobs, as well as increase production of camera modules and other products.

In addition, the following are the major large-scale projects approved in the most recent six to nine months. Local investment by Chinese and Taiwanese companies is particularly noticeable.

• Taiwan’s Foxconn, the world’s largest electronics contract manufacturing (EMS) company, will invest $246 million to build a factory in Quang Ninh Province in northern Vietnam to manufacture electric vehicle (EV) components and chargers, as well as components for IT products.
• Shandong Innovation Metal, a leading Chinese aluminum alloy manufacturer, will invest $16.5 million to build a factory in Nghe An Province in central Vietnam to manufacture components for electronic products.
• Sunny Automotive, a subsidiary of Sunny Optical Technology, a leading Chinese optical manufacturer, will invest $15 million to build a factory in Nghe An Province to manufacture camera modules.
• BYD, a leading Chinese EV and IT component manufacturer, will invest $14 million to expand its factory in Phu Tho Province in northern Vietnam to manufacture 4G and 5G modems for Apple, as well as lithium batteries for electronic devices.
• SMC, a leading Japanese manufacturer of automation equipment, will invest $12 million to expand its factory in Dong Nai Province in southern Vietnam to manufacture equipment.

In the first nine months of 2023, the second-largest sector in terms of approved investment was real estate, with $86.25 million (down 61.3% from the same period last year). The third-largest sector was consulting and other services, with $42.597 million (up 98.9% from the same period last year).

The second-largest number of projects was in retail and wholesale, with 792 projects (up 55.0% from the same period last year). The third-largest number of projects was in consulting and other services, with 383 projects (up 35.3% from the same period last year).

In terms of approved investment by country or region, Singapore ranked first with $297.974 million (down 23.0% from the same period last year). China ranked second with $279.325 million (double the amount from the same period last year). South Korea ranked third with $237.558 million (down 30.6% from the same period last year). Japan ranked sixth with $109.021 million (down 38.5% from the same period last year).

In terms of the number of projects by country or region, China ranked first with 606 projects (double the amount from the same period last year). South Korea ranked second with 602 projects (up 6.2%). Singapore ranked third with 384 projects (up 59.3%). Japan ranked fourth with 343 projects (up 37.2%).

In the first nine months of 2023, there were 2,539 investment in shares and stock acquisitions, down 5.9% from the same period last year. The approved investment amount was $482.377 million, up 47.0% from the same period last year.

The estimated actual investment amount was $1591.3 million, up 2.2% from the same period last year.

Source: https://www.jetro.go.jp/biznews/2023/10/7245835c8a1f850e.html