Record-breaking Foreign Direct Investment in Vietnam: A Closer Look
According to the National Statistics Office (NSO) under the Ministry of Finance, Vietnam has recently achieved a new milestone in foreign direct investment (FDI). Total disbursed FDI was estimated at approximately $1.68 billion, reflecting an 11.3% increase from the same period last year. This figure marks the highest level of FDI disbursement recorded in January over the past five years, signaling vibrant economic activity in the country.
Sustained Confidence from Foreign Investors
Economists have attributed this growth to the ongoing commitment of foreign investors to expand their production and business activities within Vietnam. The increase in realized FDI is viewed as a robust indicator of foreign investors’ confidence in the country’s business environment and overall economic prospects. This positive outlook suggests a resilience and attractiveness of Vietnam’s market, encouraging sustained foreign interest.
Registered Capital Figures Offer Mixed Signals
In contrast to the growth in disbursed FDI, the NSO reported a significant decline in total registered FDI—a category that includes newly registered capital, additional investments, and capital contributions or purchases of shares. Total registered capital in January 2026 fell to $2.58 billion, down 40.58% from $4.33 billion during the same month in 2025.
Of this total, newly registered capital reached $1.49 billion across 349 projects, demonstrating a 15.71% increase in value and a 23.76% rise in project numbers. However, additional capital from existing projects plummeted to $888.5 million—a substantial 67.4% decrease—while capital contributions and share purchases fell to $198.3 million, down 38.57% from the previous year.
The Factors Behind the Decline
The Foreign Investment Agency under the Ministry of Finance has pointed to a high comparison base from the prior year, which featured extraordinary capital increases in existing projects. The notable drop in adjusted capital reflects the absence of similar large-scale expansions this January. Nevertheless, the rise in newly registered projects signals that fresh FDI inflows remain strong and resilient.
Sectoral Breakdown of FDI
Delving into the specifics, FDI in January 2026 was heavily concentrated in the manufacturing and processing sector, which accounted for 76.28% of total registered capital, amounting to $1.96 billion. Following this were investments in real estate at $249.6 million (9.69%), information and communications at $134.2 million (5.21%), and the wholesale and retail sector with $124.2 million (4.82%). Other sectors represented a smaller share, aggregating about 1.8% of total capital.
Key Players in Investment
On the investment partner front, Singapore emerged as the top contributor, accounting for $1.07 billion or 41.54% of total registered capital. It was followed closely by significant investments from the Republic of Korea, China, and Japan. Together, these four partners comprised nearly 86% of total registered FDI, highlighting the continued dominance of interests from the Asia-Pacific region, while also noting a diversification with growing contributions from European and North American investors.
Regional FDI Attraction
When examining the regional landscape, Bac Ninh led the way in attracting FDI, garnering $655.94 million, while Ho Chi Minh City stood out for having the highest number of newly licensed projects, totaling 182. This concentration of investments in key localities illustrates how certain areas are becoming focal points for foreign investment inflows.