Vietnam’s Resilient Attraction of Foreign Direct Investment in 2025

A Promising Landscape for Foreign Investors

Despite facing a global foreign direct investment (FDI) landscape that is shifting towards contraction and higher quality standards, Vietnam is making strides as a desirable destination for foreign capital. In the first ten months of 2025, the country successfully attracted more than $31.5 billion in FDI, marking a 15.6% year-on-year increase. This impressive figure includes a record $21.3 billion in disbursed capital, representing an 8.8% growth. Such numbers underscore Vietnam’s robust economic standing and growth potential, as articulated by Finance Minister Nguyễn Văn Thắng at the recent 2025 Vietnam Business Forum.

A Transformative Economic Journey

The positive momentum in Vietnam’s FDI is not just about numbers; it’s also about the narrative that surrounds them. Investors at the forum echoed a common sentiment that Vietnam has undergone a remarkable transformation—from an agriculture-based economy to a burgeoning hub for manufacturing, technology, and innovation. Bruno Jaspaer, Chairman of the European Chamber of Commerce in Vietnam, highlighted this transformation, suggesting that Vietnam has evolved from merely putting rice and coffee on tables to generating impactful advancements in various sectors.

Sectoral Highlights: Manufacturing Leading the Charge

Among the sectors attracting the most investments, manufacturing and processing stand out prominently. Over the ten-month period, these sectors secured $18.2 billion in investments, which is more than 57.8% of the total registered capital, and reflects a 6.8% increase compared to the previous year. What’s particularly noteworthy is the improvement in the quality of FDI as high-tech projects in electronics, artificial intelligence (AI), and semiconductors are increasingly flowing into Vietnam, thereby aligning with global tech trends.

High-Profile Investments Fueling Progress

At a recent roundtable discussing Vietnam’s FDI strategies, the focus turned to investments from major American companies like Intel, Amkor, NVIDIA, Meta, and Google. Representative Lê Thị Hải Vân, based in Washington D.C., emphasized the prioritization of sectors such as semiconductors, AI, clean energy, and healthcare. This shift underscores a growing trend among international investors to seek high-quality, sustainable opportunities rather than merely focusing on investment volume.

The Global Investment Climate

The global landscape for investment is undeniably influenced by various uncertainties, particularly within supply chains. Recent reports from the United Nations Conference on Trade and Development indicate an ongoing decline in global FDI, with an 11% drop in 2024. Factors contributing to this decline include geopolitical tensions and a cautious approach among investors, particularly those in the high-tech sectors, driven by the G7’s policies on ‘near-shoring’ and ‘friend-shoring’ aimed at reducing reliance on China.

Vietnam’s Unique Position Amidst Challenges

Despite these global challenges, Vietnam finds itself in a unique position to capitalize on the regional wave of production shifts. The Foreign Investment Agency (FIA) predicts that there will be ample opportunities for Vietnam, particularly in sectors such as electronic components, medical equipment, and renewable energy. The agency emphasizes the need for a dual focus: attracting substantial investment and ensuring it meets high-quality standards, thus integrating into global value chains.

Addressing High-Tech Demands

As Vietnam looks to solidify its status as a significant destination for foreign investment, it must also navigate the complexities of meeting high-tech industry requirements. The ongoing tensions in global trade and shifts within supply chains offer Vietnam not only a chance for greater recognition but also challenges to rise to the occasion. The companies investing in Vietnam are looking for more than just space and resources; they want environments that foster innovation, quality products, and reliable infrastructures.

This narrative paints a picture of an evolving Vietnam—one that is attracting investments while positioning itself on the global stage as a progressive, high-tech economy.