Vietnam’s Economic Surge: Highest FDI Disbursement in Five Years

Amidst Vietnam’s economic journey, a significant milestone has been achieved – the highest Foreign Direct Investment (FDI) disbursement in the past five years, surpassing $23.18 billion by December 20, 2023. This noteworthy achievement, announced by the General Statistics Office (GSO) on December 29, 2023, reflects the robust appeal of Vietnam as a prime destination for foreign investors. As investors, we at Kenno find this influx of foreign capital highly reassuring, highlighting Vietnam as a trusted market for international investors.


Understanding the FDI Landscape

The disbursement of FDI in Vietnam for 2022 reached an estimated $22.4 billion, marking a 13.5% year-on-year increase and the highest amount recorded in the past five years, as reported by the General Statistics Office (GSO) on December 29. Despite a slight dip in total FDI attracted, standing at $27.72 billion as of December 20, the diverse array of investors from 108 nations and territories underscores the global confidence in Vietnam’s economic potential. Singapore emerged as the leading investor with $6.46 billion, followed by the Republic of Korea and Japan.

Sector-wise, foreign investors have cast their financial net across 19 out of 21 national economic sectors, with the processing and manufacturing industry taking the lead, capturing 60.6% of the total registered capital. The real estate sector follows, signifying the breadth of opportunities available in Vietnam’s varied economic landscape. The geographical distribution of investments across 54 provinces and cities further solidifies Vietnam’s appeal as a widespread investment hub.

In 2023, Vietnam achieved a remarkable milestone with committed FDI soaring to a record $36.6 billion, marking a significant 32% year-on-year increase. Among the noteworthy projects contributing to this surge are the Thai Binh LNG thermal power plant, the Jinko Solar Hai Ha Vietnam photovoltaic cell technology complex, the LG Innotek Factory, and the Lite-on Quang Ninh Factory. Notably, the manufacturing sector continued to dominate FDI inflows, capturing 64% of the total, while the property sector secured the second position with a 13% share.

While manufacturing and real estate sectors dominate the FDI landscape, Kenno’s focus on companies benefiting from domestic consumption positions us uniquely. The influx of FDI indirectly benefits our portfolio companies as the growing workforce tends to spur increased spending on goods and services, aligning perfectly with our investment philosophy. This strategic positioning enables us to ride the wave of economic growth propelled by rising domestic consumption.

Implications Unveiled

The surge in FDI holds multifaceted implications, extending beyond global trust. This substantial inflow is poised to have a profound positive impact on the growth of domestic consumption, a cornerstone of our investment strategy at Kenno. The impact, while not direct, is a natural consequence of a thriving manufacturing sector and increased real estate development. The ripple effect is felt in sectors such as healthcare, retail, and services, which cater to the evolving needs and preferences of a growing middle class. The diverse FDI landscape further ensures a broad spectrum of opportunities for our thematic approach, reinforcing our conviction in the long-term viability of our investments.

Moreover, we perceive this surge in FDI as a positive signal for multiple reasons. It reflects the global trust in Vietnam’s market, highlighting the nation’s economic stability and potential for growth. This is particularly important for foreign investors, as it underscores the long-term viability and attractiveness of Vietnam as an investment destination.

Unlocking the Potential: The Regional Landscape

In 2023, Ho Chi Minh City’s leading position in registered FDI, amounting to $5.85 billion (+48.5% YoY), underscores the sustained appeal of urban centers for foreign investment. Binh Duong and Quang Ninh represent provinces that have also attracted substantial FDI, showcasing the widespread allure of Vietnam’s regions. Known for its industrial development, Binh Duong, and Quang Ninh, a key player in the tourism sector, demonstrate the diverse opportunities within the Vietnamese landscape. Additionally, Hai Phong and Bac Giang ascended to the ranks of the top five provinces drawing Foreign Direct Investment (FDI) in 2023, propelled by significant manufacturing ventures initiated by industry leaders such as LG, Goertek, Amkor, and others. This regional diversity not only contributes to the nation’s economic growth but also provides nuanced investment prospects for those looking beyond traditional hubs.


In conclusion, the record FDI disbursements stand as a significant milestone, affirming Vietnam’s emergence as a global economic player. At Kenno, we welcome this positive development as it aligns with our thematic approach focusing on domestic consumption. The infusion of foreign capital, indirectly benefits our portfolio by catalyzing spending in areas vital to our investment strategy. As Vietnam continues its economic ascent, our team at Kenno remains poised to explore and capitalize on the diverse opportunities within this dynamic market. For those seeking to join Vietnam’s growth story, our dedicated team is ready to provide insights and guidance for a successful investment journey.

For more detailed information on this FDI milestone, you can refer to the following sources:
Vietnam Plus
Invest Vietnam
VN Express International

Published 12/2023

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