FDI Disbursement in Vietnam: A New High in Early 2026

Vietnam is witnessing a remarkable surge in foreign direct investment (FDI), with disbursement hitting $3.21 billion in the first two months of 2026. This figure marks an impressive 8.8% increase compared to the same period last year, making it the highest level of disbursed FDI during the first two months in five years.

Sector Breakdown of FDI

A closer look at the sectors reveals that the manufacturing and processing industry is the star player, attracting $2.65 billion, which constitutes a whopping 82.7% of the total disbursement. This highlights the ongoing allure of Vietnam as a manufacturing hub, with foreign investors keen to tap into the country’s growing market and skilled workforce. Furthermore, the real estate sector attracted $223.5 million, accounting for 7%, while the electricity and gas sector contributed $119.2 million, or 3.7%.

New Investments and Registered Capital

When it comes to newly committed investments, total registered FDI capital reached $6.03 billion, although this represents a 12.6% decline year-on-year. Despite this drop, the number of newly licensed projects saw a considerable increase. Specifically, Vietnam granted investment certificates to 620 projects, totaling $3.54 billion in registered capital. This reflects a robust growth rate of 20.2% in the number of projects and a staggering 61.5% rise in the value of registered capital compared to last year.

Dominance of Manufacturing and Processing

The manufacturing and processing sector continues to dominate newly registered FDI, receiving $2.63 billion—74.3% of total new capital. Following that, the wholesale and retail sector, which includes the repair of motor vehicles, attracted $358.6 million (10.1%), while other sectors accounted for $550.5 million, or 15.6%.

Geographical Attraction of FDI

Interestingly, South Korea emerged as the largest investor among the 44 countries and territories that launched new projects in Vietnam, contributing $1.34 billion—37.8% of newly registered capital. Singapore followed closely with $1.1 billion (31.1%), while China and Japan contributed $522.8 million (14.8%) and $171 million (4.8%), respectively.

Additional Investments in Existing Projects

In addition to new investments, 180 projects previously licensed registered capital adjustments, adding an additional $1.99 billion. However, this represents a significant 52.3% decline year-on-year. Notably, the manufacturing and processing sector drew $4.16 billion when including both newly registered and additional capital, making up 75.2% of the total.

Capital Contributions and Share Acquisitions

Foreign investors also engaged in 492 capital contributions and share acquisition transactions, amounting to $499.5 million, down 5.7% from the previous year. Out of this, the manufacturing and processing sector attracted $244.7 million, or 49%, while the wholesale and retail sector garnered $103.7 million (20.8%).

Rising Stars: Provincial Performance

Among the 34 provinces and cities attracting FDI, Thai Nguyen stood out as the leading destination, drawing nearly $1.7 billion in foreign investment. This marks an astonishing 1,354% increase year-on-year, positioning the northern mountainous province as a key player in Vietnam’s FDI landscape.

Ho Chi Minh City followed with approximately $900.2 million in inflows, indicating a healthy growth trend with a 28.4% rise compared to the same period last year. Other notable provinces included Bac Ninh ($818.5 million) and Hanoi ($624.5 million), showcasing a diverse geographical spread of FDI.

Comparison with Established Industrial Centers

What is particularly striking is the growth of Thai Nguyen compared to established industrial powerhouses like Ho Chi Minh City and Bac Ninh, which reported year-on-year declines in foreign capital influx. Thai Nguyen’s results reflect its potential to become a new industrial center in Vietnam, attracting significant foreign investments.

This multifaceted perspective on FDI in Vietnam reveals a dynamic landscape underlining the country’s attractiveness as an investment destination, driven primarily by manufacturing and processing sectors while enjoying active engagement from a diverse set of foreign investors.