Rising Foreign Direct Investment in Vietnam: A Five-Year High
In a significant economic milestone, Vietnam recorded a foreign direct investment (FDI) disbursement of approximately $23.6 billion in the first 11 months of 2025, marking the highest level since 2021. This figure represents an 8.9% increase from the previous year, according to the National Statistics Office. This surge in FDI demonstrates Vietnam’s growing appeal as a hub for international investment and its improved capacity to support and absorb foreign capital.
Dominance of Manufacturing Sector
The manufacturing and processing sectors emerged as the primary beneficiaries of these investments, attracting $19.56 billion, which constitutes about 82.9% of the total disbursed amount. This clear preference underscores the strength of Vietnam’s manufacturing capacity and its potential to serve as a critical player in global supply chains. The data highlights a robust momentum in the manufacturing industry, reflecting both the growing operational capabilities of local enterprises and the sustained interest of foreign investors in leveraging these developments.
Inflows and Project Licensing Trends
During this period, total registered foreign investment reached $33.69 billion, translating to a 7.4% rise compared to the previous year. Interestingly, while new capital investment exceeded $15.95 billion, it did experience a downturn of 8.2% year-on-year due to a lack of large-scale projects being initiated. However, the number of new projects saw a remarkable uptick of 21.7%, with 3,695 new projects licensed, illustrating a growing curiosity and commitment from smaller and medium-sized foreign investors.
This dichotomy suggests that while larger corporations may be retreating from initiating big-ticket projects, there is undeniable enthusiasm among smaller entities keen on establishing their presence within the Vietnamese market.
Increased Capital Contributions
In addition to new project registrations, there has been a noteworthy increase in capital for existing projects, which rose by 17% to nearly $11.62 billion within the same timeframe. On top of that, capital contributions and share purchases skyrocketed by 50.7%, amounting to nearly $6.12 billion. This trend points toward a thriving environment in which existing businesses are receiving renewed interest, further validating Vietnam’s status as an attractive investment destination.
Sectoral Breakdown of FDI
A detailed breakdown of foreign direct investment highlights that the processing and manufacturing sectors received about $16.52 billion—or 59.9% of total inflows—indicating their vital role in driving economic growth. Real estate also attracted significant investment, drawing in $5.72 billion (20.7% of total FDI), while other sectors combined received around $5.34 billion (19.4%).
This distribution of investment reflects a diverse interest among foreign investors, ranging from established manufacturing enterprises to emerging real estate developments, suggesting a balanced approach to sectoral investment.
Notable Foreign Investors
Among the countries contributing to Vietnam’s FDI landscape, Singapore emerged as the largest investor, pumping in $4.29 billion, which accounts for 26.9% of the total FDI. It was closely followed by China with $3.4 billion (21.3%), and other notable investors included Hong Kong, Japan, and Sweden, contributing $1.66 billion, $1.56 billion, and $1 billion, respectively.
This geographic diversity in investment partners showcases the global interest in Vietnam as a rising economic powerhouse and reveals the geographical strategies foreign investors are employing.
Summary
Vietnam’s current FDI landscape is characterized by great dynamism and resilience, reflected in both rising disbursement figures and an increasing number of new projects. The country’s ability to absorb foreign capital effectively, alongside its growing manufacturing prowess, positions it as a strategic location for investors looking to enter Southeast Asia’s rapidly evolving market. As small and medium-sized investors continue to explore opportunities, the potential for sustained growth remains promising, making Vietnam a focal point for foreign direct investment in the coming years.