Vietnam continues to demonstrate its strong appeal to foreign direct investment (FDI), with total registered capital in January 2025 surpassing $4.33 billion, a 48.6% increase year-over-year. While the number of new projects declined slightly, adjusted capital surged 6.1 times, reaffirming foreign investors' confidence in Vietnam’s long-term economic prospects.

Manufacturing and Processing – The Backbone of FDI

The manufacturing and processing sector remains the key driver of FDI, attracting over $3.09 billion, accounting for 71.3% of total FDI, and growing by 99.1% year-over-year. This reflects the global supply chain shift, positioning Vietnam as a strategic production hub due to competitive costs and strong investment incentives.

The real estate sector ranked second with $1.09 billion (23.5% of total FDI), slightly declining from the previous year but still attracting major investors. Additionally, science and technology, water supply, and waste treatment sectors experienced positive growth, aligning with global trends in sustainability and innovation.

South Korea & Singapore Lead FDI Inflows

South Korea led FDI inflows with $1.25 billion, accounting for 28.9% of total FDI, 13.4 times higher than the previous year, solidifying its position as the top investor in Vietnam. Singapore followed closely with $1.24 billion (28.7% of total FDI), maintaining steady growth. Japan, China, and Hong Kong were also among the top investing countries.

In terms of project count, China topped the list for new projects (30.1%), while South Korea led in capital adjustments (19%) and share acquisitions (25.4%), highlighting long-term investment commitments.

Bac Ninh & Dong Nai – FDI Hotspots

Bac Ninh emerged as the top FDI destination, attracting $1.39 billion, accounting for 32.2% of total FDI, and growing nearly 6.1 times year-over-year. Dong Nai ranked second with $959 million, 3.4 times higher than the previous year, continuing to attract strong industrial investments. Hanoi, Ho Chi Minh City, Hai Phong, and Binh Duong also recorded steady FDI inflows.

Notably, Ho Chi Minh City led the nation in new projects (35.5%), capital adjustments (19%), and share acquisitions (64.2%), reinforcing its role as Vietnam’s top economic hub.

FDI Inflows Continue, Trade Surplus Hits $3.2 Billion

In January 2025, FDI projects disbursed approximately $1.51 billion, an increase of 2% year-over-year, reflecting efficient capital deployment.

On the trade front, the FDI sector exported $22.6 billion, accounting for 70.3% of Vietnam’s total exports, while imports stood at $19.4 billion. The FDI sector recorded a trade surplus of $3.2 billion, playing a crucial role in Vietnam’s trade balance.

Vietnam – A Leading Investment Destination in the Region

The strong growth in FDI in January 2025 underscores Vietnam’s position as a top destination for global investors, driven by a stable business environment, investment incentives, and an expanding supply chain network.

With rising capital inflows into manufacturing, real estate, and high-tech industries, Vietnam is accelerating its transformation into a global production and trade hub. Now is the golden opportunity for businesses and investors to capitalize on one of Asia’s fastest-growing markets.

Conclusion

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