By
Thai Ha
Sun, December 7, 2025 | 12:25 pm GMT+7
Vietnam is making headlines with its impressive foreign direct investment (FDI) performance, having recorded an astounding $23.6 billion in implemented FDI capital over the first 11 months of 2025. This figure represents an 8.9% increase year-on-year, marking a five-year record high. It’s a clear indication of the country’s flourishing economic landscape and its attractiveness to foreign investors.
Out of the total implemented FDI, a significant chunk—$19.56 billion or 82.9%—came from the manufacturing and processing sectors, while the real estate sector contributed $1.67 billion (7.1%) according to the General Statistics Office (GSO). This trend underscores the industrial sector’s crucial role in drawing foreign investments, reinforcing Vietnam’s position as a destination for high-value industrial activities.
Looking at the registered capital, Vietnam saw an influx of $33.69 billion for the same period, a rise of 7.4% from the previous year. Notably, this amount includes capital for newly-registered projects, additional funding for existing projects, and capital from stake acquisitions. Particularly interesting is that $15.96 billion was newly registered for 3,695 new projects, although this number represents a decrease of 8.2%. However, the increase of 21.7% in terms of project numbers is promising.
Production of motorbikes at Piaggio in Vinh Phuc province, now part of Phu Tho province, northern Vietnam. Photo courtesy of the former Vinh Phuc administration.
Diving deeper into sector-specific details, the manufacturing and processing sector led in attracting newly-registered capital, bringing in $9.17 billion—accounting for 57.5% of the total. Real estate lagged behind but still managed to secure $3.14 billion (19.7%). This pattern reflects both growing confidence in the industrial capabilities of the country and a continued shift towards more sustainable and profitable growth avenues.
Among the 88 countries and territories investing in Vietnam, Singapore led with $4.29 billion (26.9% of total registered capital). Other notable investors included mainland China with $3.4 billion, Hong Kong at $1.66 billion, Japan with $1.56 billion, Sweden with $1 billion, Taiwan at $951.1 million, and South Korea with $659.6 million. This diverse international interest illustrates Vietnam’s broad appeal as a key investment location in the Southeast Asian region.
Additionally, around $11.62 billion (up 17% year-on-year) was directed toward additional capital for 1,318 operating projects during the January-November period. Foreign investors also made 3,225 capital contributions or share purchases, valued at $6.11 billion—an impressive 50.7% increase compared to the previous year. The manufacturing and processing sectors accounted for the largest share of these contributions, with a total value of $2 billion (32.7%).
Experts believe Vietnam is entering a transformative phase of industrial growth. A report by Savills Vietnam points to macroeconomic indicators, increased FDI inflows, and advancements in infrastructure as signals of a transition from quantity-driven growth to a focus on quality and scale. John Campbell, director of industrial services at Savills Vietnam, highlights the strengthening industrial foundation as crucial for supporting this shift.
The manufacturing and processing sectors are increasingly taking up a larger portion of registered capital, which rose to 60% in the first nine months and settled at 57.5% over the year. This transition is characterized by a move towards higher-value industries, including electronics, technology equipment, and semiconductors. Campbell notes the emergence of advanced electronics manufacturing, industrial equipment, and data centers as key sectors driving this growth.
Looking ahead to 2026, Campbell anticipates pivotal developments for Vietnam’s industrial market, with improved production prospects, stable investment environments, and enhanced connectivity—spanning ports, energy, and digital infrastructure—set to solidify the nation’s position as a manufacturing powerhouse in the region.
Commenting on the FDI trends, Prof. Nguyen Mai, former chairman of the Vietnam Association of Foreign-Invested Enterprises (VAFIE), underscores Vietnam’s appeal, pointing out that global institutions like the World Bank, IMF, and ADB reaffirm the country’s growth potential even as global investment trends downwards. This phenomenon is attributed to the ongoing shift in global supply chains, firmly positioning Vietnam as a strategic alternative to China.
With its favorable geography, stable political environment, and increasingly improved production capacity, Vietnam has a unique advantage in attracting foreign investments. Prof. Mai emphasizes the need for a comprehensive approach that leverages transparent institutions, modern infrastructure, and a skilled workforce. He advocates for localized strategies that align regional developments, encouraging complementary growth while avoiding unhealthy competition among provinces.