Vietnam’s Foreign Direct Investment (FDI) Capital Expenditure Reaches a Five-Year Peak from January to September

In a noteworthy development for Vietnam’s economy, disbursed foreign direct investment (FDI) capital reached a remarkable $18.8 billion from January to September 2025, representing a significant 8.5% increase compared to last year. This surge marks the highest level of FDI for the first nine months in the past five years, indicating robust investor confidence in the Vietnamese market.

The processing and manufacturing sectors have been key players in this growth, weighing in with a staggering 82.8% of the total FDI, amounting to $15.56 billion. The real estate sector, although smaller in comparison, still made a commendable contribution of $1.37 billion, or 7.3%. These figures, provided by the General Statistics Office (FIA), underscore the ongoing attractiveness of Vietnam as a destination for foreign investors.

Furthermore, the registered FDI capital for this nine-month period totaled $28.54 billion, reflecting a healthy year-on-year growth of 15.2%. This registered capital includes newly-registered projects, additional funds for existing projects, and acquisitions of stakes in ongoing ventures. Notably, $12.39 billion—despite seeing an 8.6% decline compared to last year—was attracted by 2,926 newly-registered projects, which saw a commendable increase of 17.4%.

In addition to new projects, there were 1,092 operational projects that successfully expanded their investment capital by a total of $11.32 billion, showing a substantial 48% rise year-on-year. The appetite for growth is further highlighted by foreign investors making 2,527 capital contributions and stake acquisitions amounting to $4.84 billion, which marks a striking 35% increase.

The processing and manufacturing industry dominated the landscape of newly registered capital, accounting for 58.7% of the total ($7.27 billion), followed closely by real estate, which represented 20.7% of the new capital influx ($2.57 billion). This pattern indicates a sustained interest from investors in sectors that are vital for Vietnam’s economic resilience.

Singapore emerged as the leading source of newly registered capital in Vietnam, injecting $3.43 billion, which corresponds to 27.7% of the total FDI from January to September. Following Singapore, mainland China contributed $2.88 billion, while Hong Kong came in third with $1.06 billion. Notably, Sweden made headlines with a significant $1 billion investment in a polyester fabric recycling complex project in Gia Lai province. Investors from Japan and Taiwan also contributed $878 million and $778.9 million, respectively. South Korea rounded out the top contributors with $565.2 million.

The five Northeast Asian economies—mainland China, Hong Kong, Japan, Taiwan, and South Korea—collectively accounted for $6.2 billion in newly registered capital, making up a substantial 50% of the total for this period. Historically, these countries have dominated the investment landscape in Vietnam, and their continued prioritization reflects a longstanding trend observed from 2019 to 2023.

This significant investment from Northeast Asia is propelled by the strength of these countries, particularly in high-tech sectors like electronics. Multinational corporations are increasingly shifting operations to Vietnam to mitigate risks associated with dependencies on China amid U.S.-China trade tensions, and Vietnam’s active participation in major free trade agreements adds to its allure.

Amid this growing investment landscape, Vietnam’s GDP exhibited commendable growth, rising by 7.85% in the first three quarters of 2025, with a notable 8.23% increase in the third quarter alone. This performance is among the highest growth rates seen in a decade, except for the post-pandemic surge in 2023. The second quarter also showed robust growth, with a GDP increase of 7.96%.

Business conditions in the Vietnamese manufacturing sector continued to improve slightly in September amid a renewed expansion of new orders, according to S&P Global.

Output and purchasing activity also increased, but firms continued to lower their staffing levels. The S&P Global Vietnam Manufacturing Purchasing Managers’ Index (PMI) was unchanged at 50.4 in September, signaling a further slight strengthening in the health of the sector.

Operating conditions have seen an improvement for three consecutive months, buoyed by a renewed rise in new orders after a slight dip in August. However, it is important to note that the rate of expansion remains marginal.

This comprehensive overview highlights Vietnam’s dynamic economic landscape, fueled by foreign investment and robust growth in key sectors, signaling a promising trajectory for the future.