Vietnam’s Booming Foreign Direct Investment: A 2025 Update
By Bach Quang
Thu, August 7, 2025 | 9:57 am GMT+7
In the dynamic economic landscape of Southeast Asia, Vietnam continues to capture global attention. According to the Ministry of Finance’s Foreign Investment Agency (FIA), disbursed foreign direct investment (FDI) capital in Vietnam has reached an impressive $13.6 billion from January to July 2025, marking an 8.4% increase year-on-year. This notable growth is remarkable, especially in the context of increasing trade tensions and tariff concerns emanating from the United States.
Record High FDI Capital
The $13.6 billion disbursed is not just a statistic; it’s a record high for the country over the past five years for this seven-month period. This reflects not only the resilience of the Vietnamese economy but also its attractiveness as a viable investment destination despite global uncertainties.
Of the total disbursed capital, a significant 81.6%—equating to $11.1 billion—flowed into the processing and manufacturing sectors. This underscores Vietnam’s role as a manufacturing hub in the region. Other sectors also saw substantial investments: real estate garnered $1.09 billion (8%), while the production and distribution of electricity, gas, hot water, steam, and air conditioning received $505.2 million (3.7%).
A Closer Look at Registered Investments
Registered FDI capital also showed promising growth, reaching $24.09 billion during the same period. This represents a significant 27.3% increase compared to the previous year. Registered capital includes funds for newly registered projects, additional funding for existing initiatives, and capital for stake acquisitions.
Among this total, around $10.03 billion was tagged for 2,254 newly registered projects—an increase of 15.2% year-on-year. However, the additional capital for existing projects reached an impressive $9.99 billion, showcasing a significant 95.3% rise when compared to the same period last year. This indicates a strong confidence in existing enterprises by foreign investors.
Sectoral Insights
Delving deeper into the sectoral breakdown, the processing and manufacturing industries dominated newly registered projects, attracting $5.61 billion—about 55.9% of the total. Meanwhile, real estate businesses secured $2.36 billion, accounting for 23.5%.
Among the notable achievements in the manufacturing sector is a remarkable $1 billion polyester fabric recycling complex initiated by Sweden’s prestigious textile manufacturer, Syre. Located in Nhon Hoi Economic Zone, the project is poised to operate at a capacity of 250,000 tons per year, expected to be operational by the end of 2028.
Leading Investors
Vietnam attracted foreign capital from 74 countries and territories, with Singapore being the standout investor, injecting $2.84 billion, representing 28.3% of the total FDI. Close competitors included mainland China ($2.27 billion), Sweden ($1 billion), Japan ($865.8 million), and Taiwan ($735 million).
The competition among foreign investors is robust, with various nations vying for a piece of Vietnam’s growing market. This creates a positive feedback loop: as more countries invest, it boosts local capabilities and infrastructure, further attracting additional investments.
Regional Performance
The interprovincial dynamics of investment also tell an interesting story. Ho Chi Minh City emerged as the leader in newly registered capital with nearly $1.31 billion following its merger with Binh Duong and Ba Ria-Vung Tau provinces. Bac Ninh followed closely in second place with $1.1 billion, while Gia Lai secured third place with $1.07 billion. Moreover, after the merger of Hung Yen and Thai Binh provinces, the newly formed Hung Yen sold into fourth position with around $1.07 billion in registered capital.
As regions consolidate, we see a reshaping of competitive landscapes that influence foreign investment flows.
Changing Economic Landscape
One cannot ignore the broader geopolitical context in which these investments are occurring. Following President Donald Trump’s announcement of new tariffs—affecting various countries, including Vietnam—the country’s ability to attract FDI was put to the test. However, the resilience shown through the current growth figures indicates that Vietnam has adapted well to these external shocks, thus emerging stronger amid challenges.
In summary, the burgeoning FDI landscape in Vietnam paints a positive picture. The increasing figures reveal not just a momentary spike but a long-term trend driven by diverse factors, including sectors poised for expansion and a strategic pivot from investors seeking stability in an unpredictable global economy.
For stakeholders and observers alike, the story of Vietnam’s investment environment remains an exciting narrative to watch unfold.