Vietnam 2025: New Horizons for International Investors

Vietnam is increasingly solidifying its position as a reliable and attractive investment destination for international investors, particularly from Singapore, South Korea, China, Hong Kong, and Japan. This is reflected in the strong growth of foreign direct investment (FDI) inflows from these markets in 2024. Singapore remains the top investor, with $10.2 billion in FDI, a significant increase from $6.8 billion in 2023. The country prioritizes finance, high technology, renewable energy, and real estate, leveraging its strong trade ties and Vietnam’s investor-friendly policies.

South Korea secured the second-largest FDI inflow, reaching $7.05 billion, driven by the expansion of major corporations like Samsung and LG. Investment from South Korea remains heavily focused on high-tech industries and manufacturing, underscoring a long-term commitment to Vietnam. Meanwhile, Chinese and Hong Kong investors are shifting their focus from traditional industries to high-tech, green energy, and industrial real estate, reflecting a broader transformation in global supply chains.

In contrast, Japanese investment declined sharply from $6.56 billion in 2023 to $3.5 billion in 2024, primarily due to economic uncertainty, political instability, and the depreciation of the yen. Japan is now concentrating on lower-risk domestic projects, though it may still play a role in strategic investments in Vietnam.

Looking ahead to 2025, Vietnam’s investment landscape is expected to prioritize high-tech sectors such as semiconductors, AI, renewable energy, and logistics, while traditional industries like textiles and food processing may see declining appeal. Singapore is likely to maintain its leading position, while South Korea, China, and Hong Kong are expected to sustain stable investment levels.