In 2022, Vietnam achieved impressive GDP figures with the highest quarterly growth rates in the past five years (7.72% in Q2 and 13.67% in Q3). These figures reflect a good recovery and growth rate after experiencing the severe impacts of the Covid-19 pandemic over the past two years in Vietnam. However, in Q4.2022, normally this is the time of peak growth, but the GDP growth rate of Q4 this year only reached 5.92% not as high as the previous quarters. This scenario had been predicted when the world economy faced many difficulties and Vietnam’s macroeconomics has been affected also. The GDP growth rate for the year 2022 reaches 8.02%. Due to the current difficulties and challenges, GDP growth in 2023 is forecasted to reach 6.5%.

The total value of foreign direct investment (FDI) poured into Vietnam in 2022 was about 27.72 billion USD. The total registered capital of new projects, adjusted projects and capital contributions to buy shared decreased by 11% compared to 2021 and was the lowest in the same period in recent years. The main reason for situation is mainly due to the sharp decrease in global FDI, as well as political and economic conflicts that led to decline in the amount of foreign investment capital.

The Newly Registered Fdi Industrial Projects In 2022

The number of new projects in 2022 is slightly less than 3% compared to 2021. However, the amount of attracted capital is more than 27% compared to 2021. We believe that this is a common situation in many countries and is the result of the world economy being seriously affected in the past year. Especially when the world FDI capital flows are also tending to decrease. Although the Vietnamese economy in 2023 is predicted to be more difficult than 2022 due to the global macroeconomic situation not having many clear positive changes. However, we expect that with the efforts to maintain stable macroeconomic growth and promote government investment attraction, calling for FDI investment sources will maintain stability and growth in 2023.  

In 2022, land leasing projects still account for a higher proportion than factory leasing projects. However, the proportion of factory leasing projects has increased significantly compared to 2021. Nevertheless, the investment capital of factory leasing projects is still lower than that of land leasing projects. The capital sources for these two types of projects have also changed in 2022.

Electronics, plastics, leather, metal, and textile industries are the top sectors attracting the most FDI investment in 2022. Each province, however, attracts different characteristic industries.

Overview of the implementation of Vietnam’s industrial projects in 2022

In this section, we focus on analyzing investment projects from FDI and DDI sources with an investment capital of 02 million USD that has been verified on the HOUSELINK system, including projects that are currently under construction and those that are in the preparation stages of construction (such as project preparation, design, and contractor selection).

The number of projects in preparation for construction accounts for a large proportion in terms of both quantity and total investment capital

As part of the report on the implementation of industrial projects in Vietnam in 2022, HOUSELINK focuses on analyzing projects that are in the process of preparing for construction (Project preparation, Design, Tendering, and Contractor selection) and projects that are currently under construction based on criteria such as construction type, location, project type, and investment form.

In 2022, projects in the preparation and design phase account for the largest quantity and total investment among industrial projects. Due to the consecutive increase in raw material and fuel costs recently, construction costs have been greatly affected, not to mention the disruption of supply, which makes investors hesitant to invest and construct projects. The increase in the number of projects preparing for construction in 2022 compared to 2021 also shows a more positive growth trend in the supply of projects in the future.

Tải bảo cáo

In the third quarter of 2022, the country’s GDP growth reached 13.67%, the highest in the third quarter of the last 5 years (2018-2022). The industry and construction sector and services, agriculture, forestry, and fishery sector also maintained an increase compared to the same period of last years.

The total value of foreign direct investment capital into Vietnam in 9 months of 2022 is about 18.75 billion USD. The total registered capital of all newly registered, adjusted and contributed capital to buy shares projects decreased by more than 15% compared to the same period of 2021 and became the lowest number in the same period of the previous years. The sharp decline in world FDI, and geopolitical and economic conflicts led to a decrease in foreign investment capital.

The IIP was estimated to increase in the third quarter of 2022 (by 11.9% over the same period last year), the industrial operation activities in general are still on the recovery and growth. The IIP of large industry groups had an increasing trend, including: The mining industry increased by 6,2%, the processing-manufacturing sector increased the most (12,5%), the electricity production and distribution industry increased by 11,2%, the water supply, management and treatment of waste and wastewater also achieved good growth with 8.9%.

Implementation Situation Of Vietnam Industrial Projects Q3 2022

In the third quarter of 2022, the whole country attracted about 90 newly FDI projects in the field of processing-manufacturing and warehouse construction sector. The number of projects increased 5% compared to the same period last year. However, in term of the amount of registered investment capital, in the third quarter of this year, the total amount of registered capital was only 70% of the attracted capital in the same period of 2021. The average capital of project also decreased by 36% over the same period last year.

Based on the newly investment FDI attracted into Vietnam from the beginning of 2022 until now, we see a decrease in registered investment capital from Q2 and maintained a slight decrease in Q3 (down by 3%) but the number of projects increased (Number of projects in Q3 increase by 25% compared to Q1 and Q2). We believe that in the fourth quarter of this year, both the number of projects and the scale of investment capital may increase slightly compared to the third quarter because this is the end of the year, investors, especially Chinese investors and Vietnam’s authorities tend to complete procedures at the end of the year.

Although ready-built factory (RBF) leasing is an increasing trend in 2021, in the third quarter of 2022 we see a slight decrease in RBF for lease projects compared to the same period in 2021. The land lease projects still account for the majority of newly invested FDI projects in Vietnam in the third quarter of 2022 (accounting for 73% of the number of projects) generally.

In this Report, HOUSELINK focuses on analyzing projects that are in the process of being prepared for construction (Project preparation, design, bidding, main contractor selection) and projects under construction based on criteria: Type of construction, locality, type of projects, type of investment in the first 3 months of 2022 updated in HOUSELINK data system.

In the third quarter of 2022, projects under preparation and design stages accounted for the largest number and total investment among industrial projects. Due to the continuous increase of the cost of raw materials and fuel in recent years, leading to a great impact on construction costs, and the disruption of supply chains, which makes investors afraid to invest in projects.

According to HOUSELINK’s system data, we note that in terms of quantity, expansion projects and new construction projects are not too different, but the scale of investment capital of new construction projects is nearly double that of expansion projects (see more details in the chart below). This shows that investors tend to expand production but the scale is not too large. In addition, new construction projects have achieved high values in terms of both quantity and investment scale. The new investment trend in large-scale projects is still being maintain in the Vietnam.

Tải bảo cáo