Vietnam Attracts $6.9 Billion in FDI in Just Two Months of 2025!

FDI Sees Strong Growth, Reinforcing Vietnam’s Investment Appeal

Vietnam’s foreign direct investment (FDI) inflows witnessed impressive growth in the first two months of 2025, reaffirming the country’s position as a leading destination for global investors amid an uncertain economic climate. According to the General Statistics Office - Ministry of Finance, total registered FDI reached $6.9 billion, marking a 35.5% year-on-year increase.

- Total registered FDI: $6.9 billion (+35.5%)
- Investment sources: New registrations, adjusted capital, equity contributions & share purchases

While overall FDI has surged, a notable shift in investment structure suggests that foreign investors are becoming more strategic, prioritizing the expansion of existing projects over launching entirely new ventures.

A Shift in FDI Structure: Expansion Over New Investments?

A closer look at the numbers reveals a divergence between different forms of FDI inflows.New registered capital: $2.19 billion, down 48.4%, despite a 10% increase in the number of projects (516 projects).

• Adjusted capital: $4.18 billion, a sixfold increase compared to the same period last year.
• Equity contributions & share purchases: $529.8 million, up 88.8%, indicating growing investor interest in acquiring or partnering with local businesses instead of launching new ones.

This trend suggests that international investors are opting for expansion and optimization, focusing on scaling up their operations in Vietnam rather than venturing into brand-new projects. Such a strategy helps minimize risk while maximizing efficiency in an evolving global economy.

Manufacturing and Real Estate Dominate FDI Inflows

Vietnam continues to solidify its reputation as a key manufacturing hub in the global supply chain, as reflected in the overwhelming FDI allocation toward the manufacturing and processing sector. Meanwhile, real estate remains a strong second, attracting significant capital inflows.

• Manufacturing & processing: $4.51 billion, accounting for 70.8% of total registered FDI.
• Real estate: $1.45 billion, representing 22.7% of total registered FDI.
• Other sectors: $409.4 million, making up 6.5% of total registered FDI.

The dominance of manufacturing reaffirms Vietnam’s critical role in global production networks, particularly as businesses seek alternatives to China due to rising costs and geopolitical uncertainties. On the other hand, industrial real estate is emerging as a major investment magnet, driven by increasing demand from multinational corporations establishing or expanding their manufacturing bases in Vietnam.

China Leads FDI Inflows: A Supply Chain Shift in Motion

Among the 44 countries and territories investing in Vietnam, China has emerged as the top investor, contributing a significant portion of the total registered capital.

• China: $679.8 million, making up 31% of total new registered FDI.
• Other major investors: Singapore, Hong Kong, the United States, Japan.

The surge in Chinese investment aligns with the broader supply chain diversification trend, as businesses look to reduce reliance on China amid ongoing trade tensions with the West. This shift highlights Vietnam’s growing strategic importance as a manufacturing destination, not only for Western corporations but also for Chinese firms looking to maintain global market access.

Record-High Realized FDI, Yet Investment Execution Faces Challenges

While registered FDI figures provide an optimistic outlook, the true measure of investment impact lies in realized FDI, which refers to actual disbursements into the economy. Encouragingly, Vietnam recorded its highest realized FDI level in five years, signaling strong investor confidence and commitment.

• Realized FDI: $2.95 billion, a 5.4% increase.
• Manufacturing & processing: $2.42 billion, accounting for 82.1% of total realized FDI.

Despite this growth, the speed of FDI disbursement remains a key challenge. Investors continue to face bureaucratic hurdles and administrative bottlenecks, which can delay project execution and dampen the effectiveness of capital inflows. Addressing these issues will be crucial for sustaining long-term FDI momentum and ensuring that investment commitments translate into real economic benefits.