FDI into Vietnam surges in January-July

Of this, realized FDI capital was estimated at $13.6 billion, up 8.4 percent year on year.

This is considered a positive sign amid global trade challenges, particularly due to retaliatory tariffs imposed by the United States.

Commenting on the sharp rise in FDI, Nguyen Van Toan, vice-chairman of the Association of Foreign-Invested Enterprises, noted that typically, a tough global trade environment would reduce investment flows into Vietnam.

However, Vietnam continues to benefit as U.S. retaliatory tariffs are indirectly targeting China, its biggest competitor.

Another factor contributing to the FDI increase is Vietnam’s reforms, including an upcoming upgrade of its stock market classification, an administrative restructuring, the promotion of private sector development, and a clear focus on economic growth. 

These reforms are instilling greater confidence in foreign investors.

Investors recognize Vietnam’s strong economic growth potential and are increasing their capital accordingly.

According to Dr. Pham Hung Tien, deputy director of FNF Vietnam, American investors are showing growing interest in Vietnam’s recent policy reforms.

Although current U.S. investment levels in Vietnam remain modest, the potential is substantial. 

Several major U.S. corporations from the global Fortune 500 list are already planning to invest in Vietnam.

In addition to U.S. investors, Tien noted that other major trade partners, such as China, the EU, and BRICS countries, are also investing heavily in Vietnam, viewing it as a stable and attractive market.

This affirms that FDI continues to flow into the Southeast Asian country owing to its appealing investment environment.

Industrial production increases

The General Statistics Office also reported that industrial production maintained its growth momentum in July. 

The Industrial Production Index (IIP) for July increased 0.5 percent from the previous month and 8.5 percent year on year.

For the January-July period, the IIP rose 8.6 percent over the year-ago period.

As of July 1, the number of workers in industrial enterprises increased one percent compared to the previous month and 3.9 percent year on year.

In the seven-month period, Vietnam recorded 174,000 newly registered and reactivated businesses, up 22.9 percent. 

On average, 24,900 businesses were established or resumed operations each month.

Meanwhile, 144,400 businesses exited the market in the same period, a 15.1-percent increase. 

On average, 20,600 businesses withdrew from the market each month.

In addition, Vietnam’s total trade turnover for the period reached $514.7 billion, rising 16.3 percent. Exports rose 14.8 percent and imports increased 17.9 percent. 

The country recorded a trade surplus of $10.18 billion.

Inflation increased 3.26 percent in January-July.

In July alone, Vietnam welcomed 1.56 million international tourists, up 6.8 percent from June and 35.7 percent over the same period last year.

Cumulatively, 12.23 million foreign visitors arrived in January-July, up 22.5 percent.