Vietnam’s industrial production has shown signs of recovery and positive growth despite ongoing challenges. The business outlook for companies in the field is expected to improve significantly in the coming months, according to reports from the Ministry of Industry and Trade cited by the state news agency VNA.
Between January and April, the index of industrial production grew by around 6 percent compared to the same period last year. The manufacturing and processing sector in particular saw a 6.3 percent increase, contributing 5.5 percentage points to the overall rise.
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The ministry attributed this positive outcome to several factors. The government’s support measures have been effective. Moreover, increased foreign direct investment has boosted domestic production capacity. Also, the global market has gradually recovered and adapted to the major disruptions experienced in 2022 and 2023. Finally, there has been a rise in new export orders.
Additionally, the capacity and confidence of enterprises, especially domestic businesses, has improved on the back of a stable macroeconomic environment and the recovery trend in the global market.
Hanoi’s sustained FDI attraction
Vietnam’s capital Hanoi has maintained its allure for foreign direct investment (FDI) in the first four months of 2024. During this period, Hanoi has attracted investments exceeding $1.13 billion. With a consistent influx of FDI and a dynamic business environment, Hanoi remains a desirable destination for investors seeking growth opportunities in Southeast Asia.
In the first months of 2024, Hanoi has secured 73 new projects worth over $1 billion. Additionally, the city has approved 47 projects to increase their overall investment capital by $79 million.
Recent data from Hanoi’s municipal Statistics Office indicates that foreign investors have committed $45 million toward capital contributions and share acquisitions in local Vietnamese companies.
Specifically, in April 2024, Hanoi attracted 20 new FDI projects worth $103.9 million. Additionally, 14 existing FDI projects expanded their investments by $57.4 million. Furthermore, investors channeled $15.5 million into 27 capital contribution and share purchase transactions during the month.
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