Greenfield FDI in Vietnam up by 40% YoY in 1st 8 months of 2023: HSBC

14 Sep '23

2 min read

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Vietnam stands out among nations that attract quality foreign direct investment and reap its benefits, HSBC has said.
Greenfield FDI there rose by 40 per cent year on year (YoY) in the first eight months this year, with manufacturing accounting for 85 per cent of new FDI.
FDI inflows to Vietnam grew by 8.2 per cent YoY to nearly $18.15 billion during the period.

Vietnam stands out among countries that attract quality foreign direct investment (FDI) and reap its benefits, according to HSBC. In a report released yesterday, the private bank said greenfield FDI in the country rose by 40 per cent year on year (YoY) in the first eight months this year, with manufacturing alone accounting for 85 per cent of new FDI.

FDI inflows to Vietnam grew by 8.2 per cent YoY to nearly $18.15 billion during the eight-month period, official statistics show.

In particular, new FDI into manufacturing year to date has surprisingly exceeded those for the whole year in each of the past three years., HSBC said in its report titled ‘ASEAN Perspectives’, domestic media outlets reported.

There were 1,924 licensed projects in the January-August period, with a total registered capital of more than $8.87 billion, up by 69.5 per cent and 39.7 per cent YoY in terms of projects and capital value respectively.

While much of the initial FDI was in the lower value-add textile and footwear space, the country has quickly climbed up the value chain, growing into a key hub for electronics assembly.

The trend offers hopes for the country to witness a strong rebound when the cycle turns.

The Association of Southeast Asian Nations (ASEAN) region attracted a record high of almost 17 per cent of global FDI last year, nearly double from four years ago, the report stated.

This is a clear reflection of ASEAN's strong fundamentals, favourable demographics, and competitive supply chains, it added.

ALCHEMPro News Desk (DS)

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