According to a prediction, foreign investment will continue to be robust in 2023, with the technology and real estate industries likely to attract the most capital, despite worries about a possible worldwide economic downturn. The Ministry of Planning and Investment reported a threefold year-over-year increase in foreign investment to $1.2 billion in January, with the number of ventures rising by 48.5% to 153. HSBC, a financial institution, views the investment in Vietnam’s technology sector as a favorable development, particularly given the current slowdown in the global tech industry.
Reportedly, BOE, a Chinese display manufacturer, plans to spend $400 million constructing two factories in Vietnam, while Apple intends to commence MacBook production in the country in 2023. Certain real estate market insiders anticipate an increase in foreign investment. Property was the second-largest FDI category in 2022, totaling $4.45 billion, or 16.1% of total investment. Beginning in mid-2023, when interest rates stabilize, investment in Asian real estate, particularly Vietnam, is predicted to increase, as it is viewed as a secure investment location amid global uncertainty. According to David Jackson, CEO of property consulting firm Colliers International Vietnam, “there is still a significant amount of capital waiting to be invested in the property market.” “Vietnam is expected to attract the most interest in office, industrial, and logistics this year,” he added. Residential and tourism properties are also anticipated to benefit, although global recession and tighter spending policies remain obstacles.
In a note, ACB Securities stated that it anticipates the situation will improve in the second half of the year, becoming favorable for FDI. Foreign portfolio investment has been robust, with exchange-traded funds investing over VND3 trillion for four consecutive months in January. On the stock markets, foreign investors’ net buying was VND4.2 trillion in the previous month. However, SSI Securities cautioned that as China reopens, investors may divert their investments there, resulting in a decrease in inflows into neighboring markets.