Top 10 Provinces and Cities Attracting the Most FDI in Vietnam

At the meeting of the People's Committee of Ho Chi Minh City on the economic and social situation in August and the first 8 months of 2022 on the afternoon of August 30, Ms. Le Thi Huynh Mai - Director of the Department of Planning and Investment of Ho Chi Minh City stated that in the first 8 months of 2022, including both new FDI projects and capital attracted through capital contribution, share purchase, and purchase of domestic enterprises' contributed capital, Ho Chi Minh City attracted approximately USD 2.71 billion, up 24.4% compared to the same period last year.

Among them, nearly 480 new foreign-invested projects were granted investment registration certificates with a total registered capital of USD 309.4 million (an increase of 24.1% in the number of newly registered projects, a decrease of 17.6% in capital compared to the same period). There were 96 projects licensed from previous years adjusting their investment capital with an additional capital of USD 1.47 billion, an increase of 127.3% compared to the same period. At the same time, the city also approved 1,632 cases of foreign investors contributing capital, buying shares, and buying back the contributed capital of domestic enterprises with a registered capital of over USD 925 million.

Ho Chi Minh City has an FDI index of USD 55.19 billion

According to the Statistics Office of Hanoi, in September 2022, the city attracted $169.4 million in foreign direct investment. In the first 9 months of 2022, the entire city attracted $1.019 billion in FDI, an 18% increase compared to the same period last year. Deputy Director of the Department of Planning and Investment of Hanoi, Nguyen Ngoc Tu, affirmed that this is a positive result, helping Hanoi maintain its leading position in the country in attracting FDI. In 9 months, there were 262 newly registered projects with a total capital of $183 million (an increase of 6.5% in the number of projects and 12.5% in registered capital compared to the same period in 2021); there were 141 additional projects with increased investment capital of $336 million (an increase of 51.6% in the number of projects and a decrease of 31.8% in registered capital); foreign investors contributed capital, purchased shares in 286 projects with a total capital of $500 million, an increase of 83.8%.

The FDI inflow into Hanoi in recent years has been on the rise, especially after Vietnam's participation in bilateral and multilateral free trade agreements. In addition, the city focuses on promoting on-site investment promotion activities, addressing difficulties for domestic investing enterprises, organizing delegations to promote Hanoi's investment environment, and researching potential partners. Especially, Hanoi is frequently chosen to organize and participate in major domestic events, large cultural and sporting events, thereby enhancing investment promotion, connecting with trade promotion, tourism, as well as diplomatic and cultural activities.

Hanoi has an FDI index of $37.73 billion

From the beginning of the year until now, Binh Duong has attracted 54 new FDI projects and 14 projects with increased capital. Domestic investment is also flourishing with over 4,800 newly registered businesses. Notably, Lego - a global toy company, with a project worth over $1.3 billion. Right after Lego, Pandora - a jewelry manufacturing group from Denmark, also invested $100 million to build a factory in VSIP III Industrial Park. Skilled labor is readily available, infrastructure is ensured, the geographical location is close to the international airport, and crucially, there is enthusiasm, support, and strong commitment from the provincial government. These are the factors that foreign investors thoroughly researched and decided to choose Binh Duong as their stopover.

'Creating conditions for Binh Duong to bring a new color, a new ecosystem to Binh Duong is also a way to promote economic development further,' said Mr. Mai Hung Dung, Deputy Permanent Chairman of the Provincial People's Committee of Binh Duong. Binh Duong also has 29 invested industrial parks, covering an area of ​​nearly 12,000 hectares. It is expected that the province will continue to invest in new and expand existing industrial parks with higher standards in science and technology, environmental protection, attracting industries with high added value.

Binh Duong has an FDI index of $39.58 billion

According to the report of the People's Committee of Ba Ria - Vung Tau province, despite the basic control of COVID-19, investment attraction in the province has decreased by early October. Along with that, the capital for implementing foreign direct investment (FDI) projects has decreased compared to the same period last year; however, the capital for implementing domestic investment projects has increased. Specifically, by early October, the People's Committee of the province has granted new and adjusted the capital increase for 34 FDI projects, a decrease of 2 projects compared to the same period in 2021. The total newly registered and additional capital is over $440 million, reaching over 51% of the plan. It attracted 12 new projects and adjusted the capital for 22 projects.

In addition, the province continues to address difficulties, obstacles, and suggestions of businesses through the Support Task Force of the provincial People's Committee to overcome difficulties for businesses affected by the COVID-19 pandemic. In November 2022, the province is expected to organize an investment promotion conference for 2022, issue a list of investment projects for the 2022-2025 period, and develop an investment promotion program for 2023. According to the statistics of the People's Committee of Ba Ria - Vung Tau province, up to now, there are 442 foreign-invested projects in the province with registered capital of over $29.993 billion; there are 688 domestic-invested projects with registered capital of over VND 346.315 trillion.

Ba Ria Vung Tau has an FDI index of $33.13 billion

As per the Provincial People's Committee of Dong Nai, the locality aims to attract approximately 1.1 billion USD in foreign direct investment (FDI) in 2022. Of this, around 700 million USD is earmarked for industrial zones within the province, and 400 million USD for areas outside industrial zones. Presently, Dong Nai has established 32 industrial zones, with 31 of them actively operating. The High-Tech Industrial Zone of Long Thanh is currently undergoing land clearance and completing procedures for land to develop infrastructure. Besides, several industrial zones are expanding, such as Amata, Giang Dien, Ho Nai, Song May, Ong Keo, and Dinh Quan.

Goods produced in Dong Nai can be transported to various locations nationwide, reducing both time and transportation costs. Therefore, if Dong Nai swiftly completes procedures, investment documentation, and infrastructure for industrial zones, providing readily available land for lease, it will attract many domestic and foreign enterprises to invest in the industrial sector.

In addition to developing industrial zones, Dong Nai province has 15 out of 27 planned and operational industrial clusters, with around 190 projects in progress. The leased land area is 357 hectares, equivalent to about 38% of the total industrial land for lease. Some crucial industrial clusters with completed transportation infrastructure, environmental facilities, and successful project attraction include Tan Hanh Ceramics Industrial Cluster with 33 projects, Phu Thanh - Vinh Thanh Industrial Cluster with 32 projects, Doc 47 Industrial Cluster with 27 projects, and Ho Nai 3 Industrial Cluster with 24 projects.

Dong Nai has an FDI index of 34.03 billion USD

Being the smallest province in the country with a population ranking 22nd out of 63 provinces and cities, scarce in mineral resources, yet Bac Ninh has shone brightly, consistently ranking 2nd in terms of export turnover, following Ho Chi Minh City. In 2021, building on its previous success, Bac Ninh achieved an export turnover of 44.8 billion USD, a 14.7% increase compared to 2020, still trailing behind Ho Chi Minh City. However, Bac Ninh recorded a trade surplus of 6.5 billion USD, while the economic flagship had a trade deficit of 15.2 billion USD. The only explanation for this phenomenon is Bac Ninh's strong and effective attraction of foreign direct investment (FDI).

Bac Ninh is among the top 10 provinces attracting the most FDI in Vietnam, ranking 7th in the number of projects but 5th in terms of capital. The province is home to the Yen Phong Industrial Park, leading the top 10 industrial parks in the country in terms of implemented FDI capital at 9.816 billion USD, despite ranking 3rd in terms of area. It can be said that Bac Ninh has leveraged its favorable geographical location and created a conducive environment. Specifically, the province is located in the key economic region of the Northern region, with convenient trade, increasingly improved infrastructure, and attractive conditions for investors, especially in FDI. Administrative reforms and improvements in the investment and business environment are always a priority.

Bac Ninh has an FDI index of 22.69 billion USD

According to the Statistics Office of Hai Phong City, the foreign direct investment (FDI) capital in the first 9 months of 2022 is estimated at VND 40,156.3 billion, an increase of 4.10% compared to the same period last year. Among the FDI projects in the province, the most prominent are the projects of the LG Group (South Korea) with 3 projects among the top 20 largest South Korean projects in Vietnam. Specifically, the 3 projects for the production of electronic components by the LG Group (the 4th largest in South Korea and mainly operating in the electronics industry, according to Reuters) in Hai Phong include LG Display, LG Electronics, LG Innotek, with a total registered capital of USD 7.24 billion, investing in the Trang Due Industrial Zone. In particular, the LG Display project with the H3 factory is under construction and is expected to be completed in the first quarter of 2023.

As of September 2022, Hai Phong ranks 5th nationwide in attracting FDI with 952 projects and a total registered investment capital of USD 24.51 billion. Among them, over 170 projects are invested by South Korean investors with a registered capital of nearly USD 10 billion, accounting for nearly 40% of the total registered FDI capital in Hai Phong. To enhance the efficiency of business production and attract new investors, Hai Phong City commits to continue significantly improving the investment and business environment, focusing on developing infrastructure, especially regional connectivity transportation projects.

Hai Phong has an FDI index of USD 24.24 billion

From the beginning of this year, Long An has issued investment certificates for 23 FDI projects, with newly registered capital of $243.6 million; adjusted capital for 31 projects with an additional investment of $151.8 million. In terms of attracting foreign direct investment (FDI), the province has attracted $395.4 million in FDI; including 23 projects granted investment registration certificates with newly registered capital of $243.6 million, and capital adjustment for 31 projects with an additional investment of $151.8 million. Up to now, there are 1,145 FDI projects in the province, with a total capital of $9.7845 billion; of which 588 projects are in operation, with a total investment of $3.624 billion.

Regarding business development, in the first 5 months of 2022, there were 726 newly established businesses in Long An, with a total capital of VND 10.411 trillion, an increase of 11% in the number of businesses and a 14% decrease in registered capital compared to the same period. In addition, 119 businesses were dissolved, a 17% decrease compared to the same period; 279 businesses temporarily suspended business, an increase of 51% compared to the same period; 162 businesses resumed operation, an increase of 10% compared to the same period. Currently, there are 14,447 businesses registered to operate in the province with a total registered capital of VND 358.554 trillion; of which 11,699 businesses are in operation.

Long An has an FDI index of $12.55 billion

Up to now, the Nghi Son Economic Zone (NSEZ) and industrial zones (IZs) in Thanh Hoa province have attracted 671 projects, including 605 domestic projects with a total registered investment capital of VND 169.333 trillion and 66 foreign direct investment (FDI) projects with a total registered investment capital of over $13.5 billion USD. In early 2022, the People's Committee of Thanh Hoa province issued Decision No. 371/QD-UBND approving the list of projects calling for direct investment in Thanh Hoa province for the 2021-2025 period. Accordingly, the People's Committee of Thanh Hoa province calls for 87 projects in the fields of industry, high-tech agriculture, technical infrastructure, tourism and services, energy, with a total investment of over $36.5 billion USD. Among them, nearly 50 projects focus on NSEZ and IZs in Thanh Hoa province.

The field of technical infrastructure investment includes Project No. 20 - NSEZ Business Infrastructure Investment (with an area of 783ha in NSEZ), with an estimated total investment of $250 million; Project No. 21 - NSEZ Business Infrastructure Investment (539ha in NSEZ), with an estimated total investment of $200 million; Project No. 19 - NSEZ Business Infrastructure Investment (918ha in NSEZ), with an estimated total investment of about $350 million; Project Investment in Business Infrastructure - Urban - Services in the West of Thanh Hoa City (1,200ha in the western IZ of Thanh Hoa City), with an estimated total investment of $500 million.

Thanh Hoa has an FDI index of $14.76 billion

Despite a lower number of projects attracted compared to the same period in 2021, the registered investment capital in the first 6 months of 2022 for Hà Tĩnh reached VND 2,121 billion, a 42% increase. Notable projects with high registered investment capital include the high-end coastal resort Wyndham Costa Hà Tĩnh (Thạch Hà) with a total investment of over VND 952 billion; the urban area on both sides of Ngô Quyền Street (Hà Tĩnh City) with a total investment of over VND 796 billion; and the residential area in Hà Huy Tập Ward (Hà Tĩnh City) with a total investment of over VND 280 billion.

Accumulated to date, the entire province has 1,451 investment projects with a total registered capital of VND 445,365 billion, including 1,384 domestic investment projects with a total registered capital of over VND 131,921 billion and 67 active FDI projects with a total registered capital of over VND 313,444 billion. It is noted that from the beginning of the year until now, Hà Tĩnh has actively implemented investment promotion activities, especially in providing information and guidance for investors to research and survey investment projects in the province, such as Vinhomes Corporation (under Vingroup) researching the investment project Vinhomes Kỳ Anh Urban Area in Kỳ Trinh Ward; IPC Group Corporation researching the investment project of wind power plants in Kỳ Anh and Cẩm Xuyên districts.

Hà Tĩnh has an FDI index of $11.73 billion