Vietnam’s national budget investment increased significantly in January 2024, and business market activity increased despite challenges

Vietnam's exports show bright spots, growing significantly year-on-year

In January 2024, as the number of working days increased compared to January 2023 (the Lunar New Year holiday in February was scheduled), the import and export activities of goods showed a significant growth trend during the month. According to trade statistics, the import and export of goods in January 2024 is expected to reach a staggering US$64.22 billion this year, an increase of 37.7% compared with the same period last year, of which 42% was exported and 33.3% was imported.

In terms of goods exports, exports in January 2024 are expected to reach US$33.57 billion, a quarterly increase of 6.7%, and an annual growth rate of 42%. In the structure of export goods, the export of processed industrial products led to the dominant position with an export value of 29.48 billion US dollars, accounting for 87.8% of the total export proportion. This reflects strong demand for processed industrial goods in the international market and the country's trade in this area.

In terms of imports, the import value of goods in January 2024 is expected to be US$30.65 billion, an increase of 4.2% from the previous quarter, and an annual growth rate of 33.3%. As for the structure of imported goods, the production goods category reached 28.84 billion U.S. dollars, and the import volume reached 94.1%, showing the strong domestic demand for production raw materials and intermediate products.

In terms of the trade balance, data for January 2024 shows that a trade surplus of US$2.92 billion is expected. Among them, the trade deficit of the domestic economic sector was US$2.12 billion, while the trade surplus of the foreign investment sector (including crude oil imports) was as high as US$5.04 billion, highlighting the important contribution of the foreign investment sector in international trade.

These data not only highlight the country's positive performance in the global trade environment, but also reflect the strong demand for its products in the international market. As the global economy gradually recovers, the country's trade activities are expected to remain active and dynamic in the coming months.

Foreign direct investment in Vietnam achieved significant growth in January, with foreign investment capital rising sharply

Vietnam ushered in significant growth in foreign direct investment (FDI) in January 2024, with funds reaching US$1.48 billion, an increase of 9.6% compared with the same period last year. This growth highlights Vietnam’s growing attractiveness as a destination for foreign investment.

On January 20, 2024, the total foreign investment registered in Vietnam (including new investment, investment adjustment and equity investment) reached US$2.36 billion, a significant increase of 40.2% compared with the same period last year. This significant growth reflects the strong confidence of international investors in the Vietnamese market and the stable growth potential of the Vietnamese economy.

In terms of Vietnam’s foreign investment, January 2024 also witnessed a huge leap from the same period last year. In this month, a total of 11 projects were newly granted investment certificates, and Vietnam’s investment amount reached US$16.2 million, 9.3 times that of the same period last year. The data not only demonstrates the positive attitude of Vietnamese enterprises towards expansion, but also triggers the extensive opening up of Vietnam’s economy and the deepening of international cooperation.

These positive data reflect Vietnam’s significant progress in attracting foreign investment and promoting outward investment, and highlight its active role as an investment destination for neighboring countries and a global market player. As the Vietnamese government continues to promote reforms and create a more favorable investment environment, Vietnam is expected to continue to attract more foreign investment and play an increasingly important role in the global economy.

Report on national budget investment and corporate market trends in January 2024

In January 2024, investment funds within Vietnam's national budget showed a positive growth trend, reaching 31.1 trillion VND, accounting for 4.4% of the year's plan and an increase of 12.5% ​​over the same period last year. This growth rate is significantly higher than the 3.8% and 5.6% growth rates in the same period in 2023, highlighting the government's increased investment in infrastructure and key areas to promote economic growth and social development.

At the same time, the dynamics of the enterprise market have also shown a certain degree of activity, but they still face some challenges. In January 2024, the number of newly established companies across the country reached 13,500, a month-on-month increase of 2.2%, and a year-on-year increase of 24.8%. In addition, nearly 13,800 companies across the country have resumed work and production, an increase of 2.2 times compared with December 2023, although it decreased by 8.4% compared with the same period in 2023. This brings the total number of newly opened and resumed companies in January 2024 to more than 27,300, with an annual growth rate of 5.5%.

However, the number of delisted and suspended companies on the market is still higher than the number of newly established companies. In January 2024, the number of companies suspending operations reached 43,900, a year-on-year increase of 25.5%. There were 7,798 companies that had ceased operations and were awaiting dissolution procedures, an increase of 14%, while the number of companies that had completed the dissolution procedures was 2,165, an increase of 6.2%. Overall, the number of companies delisted reached 53,900, a year-on-year increase of 22.8%.

These data reflect the certain challenges faced by enterprises in the Vietnamese market. Although the establishment of new enterprises shows the vitality of the market, the high enterprise exit rate also indicates the competitive pressure of the market and possible operating difficulties. The government and relevant departments may need to take further measures to support the stable development of enterprises, especially small and medium-sized enterprises, to promote the healthy and sustained growth of the overall economy.

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