The latest report from the Vietnam Foreign Investment Bureau shows that as ofOn May 20, 2023, Vietnam received nearly 10.86 billion US dollars in foreign direct investment. Since the beginning of the year, foreign investors have invested in 18 industries and fields in Vietnam.

Among them, the processing and manufacturing industry accounts for the largest proportion, attracting more than6.64 billion US dollars, accounting for 61.2% of the total registered capital. Next is the financial banking industry, with a registered capital of over 1.53 billion US dollars, accounting for over 14.1% of the total registered capital. The real estate industry ranks third with a registered capital of nearly 1.16 billion US dollars, a year-on-year decrease of 61.3%.

The prominent feature of this set of data mainly lies in Vietnam's processing and manufacturing industries and the real estate industry.

Demographics of Vietnam's population is close toOne hundred million, with a total workforce of about 54 million. According to data from the International Labour Organization, the minimum wage standard in Vietnam is about $180 per month, which is half of China's or even lower. The young labor structure and low Labor burden make Vietnam have the natural advantage of becoming a manufacturing factory in the world.

And in fact,The processing and manufacturing industry has always been the main industry driving the Vietnamese economy.

As ofBy the end of 2022, Vietnam had established approximately 403 industrial parks nationwide, of which 291 had already been put into use, only in the field of processing and manufacturing. Foreign direct investment funds accounted for 70% -80% of Vietnam's total registered capital. It is mainly distributed in Beijiang, Beining, Hanoi, Yongfu, Haiphong and other provinces and cities in northern Northern Vietnam.

this yearSince May, the high temperature and drought have led to power outages in turn throughout Northern Vietnam. The electronics manufacturing and auto parts manufacturing and processing industries in northern Vietnam are the hardest hit areas, and many major international factories have stopped production. Economists have pointed out that Vietnam's power supply structure and infrastructure construction cannot keep up with the development speed of the processing and manufacturing industry, which will greatly affect Vietnam's position as a world factory.

However,The latest report from the Vietnam Foreign Investment Bureau shows that in the first half of this year, Vietnam's processing and manufacturing industry attracted more than6.64 billion US dollars, accounting for 61.2% of the total registered capital, indicating that the power outage storm has not had a significant impact on the ability of Vietnam's processing and manufacturing industry to attract foreign investment.

Deputy Minister of Planning and Investment in VietnamexpressIn recent years, Vietnam has continuously become an investment paradise for the manufacturing industry,inflowVietnamForeign investment in industrial and economic zones,Proportion of total newly added foreign investment in the country35% -40%Refine toProcessing and manufacturing industry, with a ratio of up to70-80%.

Compared with the manufacturing industry in Manufacturing in Vietnam, the real estate industry in Vietnam is obviously not optimistic. Data display,In the first half of 2023, Vietnam's real estate industry received a total of 1.16 billion US dollars in foreign direct investment, a decrease of 61.3% compared to the same period last year.

This is mainly because,In 2022, Vietnam began a financial anti-corruption storm, comprehensively reviewing various bond issuing companies, with real estate being the hardest hit area. In addition, the Federal Reserve has raised interest rates several times and the US dollar has strengthened. In order to stabilize the currency and balance the foreign exchange market, the Vietnamese central bank has continuously raised interest rates and tightened the credit market, resulting in difficulties in domestic real estate loans and a lack of financial support, making it difficult to maintain multiple projects.

Industry experts have also stated that the significant decline in foreign investment in the real estate sector in Vietnam is due to inherent problems in the Vietnamese real estate market, such as supply shortages, insufficient land funds, and legal issues. The Vietnamese authorities should simplify the project approval process and publicly disclose the planning information of industrial zones, making it easier for foreign investors to study and seize investment opportunities.