As of September 20, 2022, the total registered capital of foreign investors in Vietnam reached nearly 18.75 billion USD, down 15.3% over the same period last year, mainly due to the decrease in newly registered capital. Newly registered capital in nine months of 2022 decreased by 43% compared to the same period last year because that one in the same period in 2021 suddenly increased by 4.41 billion USD from 02 newly registered projects in the first quarter of 2021, including Long An LNG Power Plant Project I and II (Singapore investor, total registered capital of over 3.1 billion USD) and O Mon II Thermal Power Plant Project (Japanese investor, total registered capital of over 1.31 billion USD). If excluding the sudden increase of 4.41 billion USD in early 2021, the total registered foreign investment capital in 9 months of 2022 will increase by 5.74% over the same period last year.

Among 63 countries and territories with newly licensed investment projects in Vietnam in the nine months of 2022, Singapore was the largest investor with 1.45 billion USD, accounting for 20.4% of the total newly registered capital; followed by Denmark with 1.32 billion USD, accounting for 18.5%; Japan 927.5 million USD, accounting for 13%; Korea 749.1 million USD, accounting for 10.5%; China 735.3 million, accounting for 10.3%.

This affirms the confidence of foreign investors in Vietnam’s business investment environment, considering Vietnam as a safe and attractive investment destination, and continuing to expand investment when Vietnam applies policies to attract investment and advocates reopening the economy after nearly two years of restrictions due to the Covid-19 epidemic. In particular, the Investment Law 2020 took effect on January 1, 2021, which can be considered a breakthrough in the regulation of investment activities in Vietnam, reflecting positive results from the implementation of the New Law. In the Investment Law 2020, the regulations gradually remove unnecessary administrative procedures in the management of investment activities: In which, the new Investment Law is supportive of start-up investment projects, foreign investment projects in start-up activities in Vietnam. Investors of large projects (for example, golf courses, and casinos…) will only need to apply for approval from the People’s Committees of provinces and cities compared to the previous Law must be approved by the Prime Minister. This is one of the important adjustments contributing to the reform of administrative procedures; For foreign investment projects related to innovative start-up investment, investors will not need to carry out investment registration procedures. Innovation and research and development centers are also added to the investment incentive cases. Regarding the extension of the investment progress, project progress is not allowed to extend for more than 24 months compared with the initial progress, except for force majeure cases as prescribed by Law and other cases, thereby creating an “escape” for many hanging projects in Vietnam.

The bright spots on improving the business environment, production, investment, and international trade in the nine months of 2022 are the basis for many prestigious international organizations to keep positively assessing Vietnam’s economic situation next time.  Foreign investors are placing great faith in Vietnam’s investment environment and economic position, forecasting promising results for foreign investment in Vietnam in the last months of 2022.