Foreign investment into Vietnam recovered in the first five months of this year although it has not yet reached the peak of the 2020-2021 period. However, growth among different investment streams has been uneven. Impressive new FDI registrations According to updated data from the General Statistics Office, fresh foreign investment approvals in Vietnam in the year to May 20, including new registrations, adjusted capital, and portfolio capital, had reached US$11.07 billion, up 2% against the same period last year. Although this is a modest increase, it is a positive change compared to the 7.3% decrease in the first five months of 2023 and the 16.4% decrease in the same period of 2022. However, compared to the peak of US$13.89 billion in the first five months of 2020 and US$14 billion in the same period of 2021, foreign investment into Vietnam is still below expectations. The global economy in 2020-2021 was adversely affected by the Covid-19 pandemic, but it also prompted multinational corporations to diversify their supply chains upon recognizing the significant risks of heavy dependence on China. Furthermore, the ongoing trade war between the U.S. and China, which began in March 2018, has spurred the diversification of investment to neighboring […]
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