Key Takeaways
- Vietnam’s FDI rose 32.6% YoY in H1 2025, reaching US$21.5 billion, driven by strong investor confidence and capital reinvestment.
- Manufacturing, real estate, and green sectors led inflows, supported by improved regulatory frameworks and trade agreements.
- Foreign investors are shifting toward long-term strategies, scaling existing projects, and targeting high-growth provinces like Hanoi and Bac Ninh.
Vietnam’s foreign direct investment (FDI) landscape witnessed a powerful resurgence in the first half of 2025, cementing its reputation as one of Asia’s most attractive and dynamic destinations for international capital. With total FDI inflows reaching an impressive US$21.5 billion, reflecting a robust 32.6% year-on-year increase, the country has not only outperformed expectations but also established itself as a regional standout in the post-pandemic investment cycle.
This remarkable growth comes at a pivotal moment when global investors are actively realigning supply chains, diversifying asset allocations, and seeking resilient markets with scalable infrastructure and favorable policy environments. Vietnam checks all these boxes—and more. Strategically located in Southeast Asia, with proximity to major manufacturing hubs and robust trade links through free trade agreements such as the EVFTA, CPTPP, and RCEP, the country continues to offer a unique blend of cost competitiveness, political stability, skilled labor, and open-door investment policies.
The 32.6% surge is not simply a statistical rebound. It reflects deepening investor confidence, underpinned by a maturing regulatory framework, improved project execution, and a concerted push from the government to attract high-quality capital. A closer look into the FDI composition reveals several significant shifts: while new investment registrations saw a modest decline due to the absence of mega-projects seen last year, there was a notable surge in capital adjustments and share acquisitions—indicating that existing foreign players are doubling down on their presence in Vietnam, and new entrants are increasingly opting for mergers and acquisitions as a strategic entry route.
This blog offers a comprehensive, data-driven analysis of Vietnam’s FDI performance in H1 2025, with a strategic lens tailored for foreign investors. From sector-specific insights and country-level contributions to regional investment hotspots and evolving capital structures, this overview highlights the critical trends, opportunities, and considerations that will shape FDI strategies moving forward. Whether you’re a multinational corporation looking to expand production, a private equity fund evaluating Southeast Asia, or a startup seeking joint venture partners, understanding Vietnam’s current investment dynamics is essential for informed decision-making.
As Vietnam shifts from being a low-cost manufacturing alternative to a high-value investment ecosystem with thriving industrial clusters, sustainable development priorities, and digital transformation goals, now is the time for global investors to reassess their strategic footprint in this fast-rising economy.
In the sections that follow, we will delve into:
- The detailed breakdown of FDI types and trends,
- The top-performing sectors and provinces attracting capital,
- The most active investor countries,
- Strategic implications for foreign stakeholders,
- And forward-looking policy and market considerations for H2 2025 and beyond.
Vietnam’s FDI story in 2025 is no longer just about growth—it is about quality, scalability, and future-readiness.
Vietnam Records Exceptional FDI Growth
- Vietnam attracted US$21.5 billion in total foreign direct investment in the first half of 2025, representing a 32.6% year-on-year increase.
- This marked the strongest FDI inflow in over 15 years, signaling heightened international investor confidence in Vietnam’s long-term potential.
- The composition of FDI inflows demonstrated diversification:
- Newly registered capital: US$9.3 billion across nearly 2,000 projects (–9.6%)
- Adjusted capital: US$8.95 billion in 826 existing projects (+120%)
- Capital contributions and equity purchases: US$3.28 billion (+73.6%)
- Disbursed FDI reached US$11.72 billion, growing by 8.1% YoY—indicating strong project execution capacity.
Implications for Foreign Investors
- Growing Market Confidence: The rise in reinvestment and capital adjustment shows long-term trust and commitment from global investors.
- Maturing Investment Environment:
- High levels of disbursed capital signal improving project management and infrastructure.
- Shifts in capital types (from new to adjusted and contributed capital) point to sustainable investment patterns.
- Attractive Entry & Expansion Signals:
- Equity purchase growth suggests viable entry via M&A.
- Capital expansion indicates robust operational opportunities for existing investors.
Top Sectors Receiving FDI in H1 2025
| Sector | FDI Value (US$ Billion) | % of Total | YoY Growth |
|---|---|---|---|
| Manufacturing & Processing | 12.0 | 55.6% | +3.9% |
| Real Estate | 5.17 | 24% | +100% |
| Science & Technology | 1.18 | 5.5% | Moderate |
| Water Supply & Waste Treatment | 0.903 | 4.2% | Emerging |
- Manufacturing retains dominance due to Vietnam’s role in global supply chains.
- Real estate doubled YoY, driven by demand for industrial parks, logistics hubs, and urban expansion.
- Science, technology, and green infrastructure are rising stars for future-focused investors.
FDI Inflows by Country of Origin
| Country/Territory | FDI Value (US$ Billion) | % Share | Remarks |
|---|---|---|---|
| Singapore | 4.6 | 21.4% | Slight decline, still leading |
| South Korea | 3.0 | 14.3% | Doubled YoY |
| China | 2.55 | 11.9% | Steady rise |
| Japan | 2.15 | 10.0% | Moderate contribution |
| Malaysia | 1.59 | 7.4% | Jumped 20 spots |
| Sweden | 1.0 | 4.6% | Climbed 59 positions |
- Malaysia’s surge is attributed to its major capital addition to the Yen So Park project.
- Sweden’s leap is due to a US$1 billion investment in polyester recycling production—reflecting sustainability-oriented FDI.
Geographic Distribution of FDI in Vietnam
| Province/City | FDI Value (US$ Billion) | % of Total | YoY Change |
|---|---|---|---|
| Hanoi | 3.66 | 17% | 2.8x growth |
| Bac Ninh | 3.15 | 14.6% | Strong increase |
| Ho Chi Minh City | 2.7 | 12.6% | Stable |
| Dong Nai | 1.63 | 7.6% | Expanding base |
| Ha Nam (pre-merger) | 1.2 | 5.6% | Active growth |
| Ba Ria–Vung Tau (pre-merger) | 1.08 | 5% | Notable rise |
- Hanoi leads in both value and growth, reflecting successful project approvals and land use reforms.
- Northern provinces like Bac Ninh benefit from proximity to tech manufacturing corridors.
- Southern hubs like HCMC and Dong Nai remain essential logistics and export nodes.
Mid-Year Investment Activity Peaks
- June 2025 recorded the highest number of investment-related transactions:
- New registrations: 439 projects
- Adjustments: 152 projects
- Equity/share acquisitions: 350 deals
- This suggests mid-year momentum, likely influenced by post-policy clarity and trade agreement implementations.
Key Opportunities for Foreign Investors in 2025 and Beyond
- Manufacturing Expansion: Incentives for high-tech, green, and precision manufacturing.
- Green & Circular Economy Projects: Rising investor interest in waste treatment, recycling, and ESG-aligned sectors.
- Industrial Real Estate Development: Surging demand for smart industrial parks, logistics zones, and data centers.
- Buy-In Through M&A: Share purchases are rising—indicating mature local firms available for strategic partnerships or acquisitions.
Summary: Vietnam’s Investment Climate Strengthens
- Vietnam’s 32.6% FDI growth in early 2025 confirms its position as a prime investment destination in Southeast Asia.
- The transition from one-off megaprojects to more diverse, resilient investment streams—including capital adjustments and M&A—shows structural maturity.
- Policy transparency, investor protection reforms, and enhanced infrastructure will likely continue attracting high-value, sustainable FDI.
Suggested Next Steps for Investors
- Identify high-performing industrial provinces with streamlined licensing.
- Explore partnerships in sectors benefiting from Vietnam’s export incentives.
- Monitor capital adjustment trends to align with projects entering expansion phases.
- Leverage Vietnam’s double tax treaties and FTAs to maximise ROI.
Conclusion
Vietnam’s foreign direct investment (FDI) performance in the first half of 2025 marks a critical milestone in the country’s economic evolution. With total FDI inflows rising by 32.6% year-on-year to reach US$21.5 billion, Vietnam has once again affirmed its position as one of the most attractive FDI destinations in Asia. More than a rebound, this growth reflects deepening investor confidence, enhanced regulatory support, and a reorientation of investment flows toward long-term strategic sectors and sustainable development pathways.
The data reveals several structural shifts that are highly relevant for international investors. While newly registered capital declined marginally due to a high comparative base from 2024, there was a significant surge in capital adjustments (up 2.2 times) and a 73.6% increase in equity/share acquisitions. This indicates that foreign investors are no longer merely entering Vietnam to establish new operations; they are scaling existing ventures, acquiring strategic assets, and deepening operational integration within the Vietnamese economy. These developments signify a maturing investment environment—one where short-term arbitrage is giving way to long-term commitment and value creation.
From a sectoral perspective, manufacturing and processing continued to dominate, attracting over US$12 billion in FDI and accounting for 55.6% of the total. Real estate investment also doubled, showcasing growing interest in industrial parks, logistics zones, and smart city developments. Emerging sectors like science and technology, environmental infrastructure, and recycling are also gaining traction, aligning with Vietnam’s national strategies around innovation, digital economy, and green growth.
Geographically, the distribution of FDI flows highlights both continuity and diversification. Traditional powerhouses such as Hanoi, Ho Chi Minh City, and Bac Ninh attracted the lion’s share of investments, but provinces like Dong Nai, Ha Nam, and Ba Ria–Vung Tau also recorded significant inflows. This expanding footprint demonstrates the country’s efforts to develop balanced regional development, industrial decentralization, and stronger local investment ecosystems.
From a country-of-origin standpoint, Singapore, South Korea, China, Japan, and Malaysia remained the top contributors. Notably, Malaysia and Sweden recorded major leaps, driven by billion-dollar projects in green and high-tech sectors. This reflects Vietnam’s growing appeal not just to traditional FDI sources, but also to new players seeking climate-aligned, innovation-led opportunities.
For foreign investors, the implications are both profound and actionable. Vietnam today is no longer merely a low-cost manufacturing destination—it is rapidly transforming into a high-value, strategically positioned economy driven by industrial upgrading, technological adoption, and institutional reform. The government’s push for improved infrastructure, digitalization, and transparency in investment procedures is making it easier for global companies to scale efficiently and invest with confidence.
Furthermore, Vietnam’s active participation in over a dozen free trade agreements—including the CPTPP, EVFTA, and RCEP—provides foreign investors with preferential market access, tariff reductions, and reduced operational risks. Combined with competitive labor costs, a young workforce, and geopolitical neutrality, these advantages make Vietnam an indispensable node in global value chains.
As the global economy moves toward resilience, sustainability, and regional diversification, Vietnam stands out as a strategic hub for FDI-led expansion in Asia. Investors who understand the current trajectory, align their strategies with national development priorities, and move early into high-growth sectors will be best positioned to realize long-term returns.
In summary, Vietnam’s FDI surge in H1 2025 offers a powerful case study of policy stability, investor trust, and economic transformation. For foreign stakeholders, the message is clear: Vietnam is open, thriving, and ready for the next wave of global investment.
Now is the time to:
- Deepen existing operations or expand via capital adjustments,
- Explore acquisition opportunities through share purchases,
- Target high-growth, government-backed sectors such as manufacturing, digital tech, real estate, and green infrastructure,
- Establish presence in top-performing cities and emerging provinces,
- And leverage Vietnam’s trade agreements to access broader markets across Asia, Europe, and the Pacific.
Vietnam’s FDI momentum is not a temporary surge—it is a sustained trajectory toward becoming a regional investment powerhouse in the global economy.
People Also Ask
What is the total value of Vietnam’s FDI in H1 2025?
Vietnam attracted US$21.5 billion in foreign direct investment in the first half of 2025, marking a 32.6% year-on-year increase.
Why did Vietnam’s FDI grow significantly in early 2025?
The surge was driven by investor confidence, strong disbursement rates, sector diversification, and supportive government policies.
Which sectors received the most FDI in H1 2025?
Manufacturing and processing led with over US$12 billion, followed by real estate, science and technology, and waste treatment.
How much FDI went into manufacturing and processing?
The manufacturing and processing sector received nearly US$12 billion, accounting for 55.6% of total FDI in H1 2025.
What was the FDI disbursement amount in H1 2025?
Disbursed FDI reached approximately US$11.72 billion, reflecting an 8.1% increase compared to the same period in 2024.
How many new FDI projects were registered in H1 2025?
Nearly 2,000 new projects received investment registration certificates in the first half of 2025.
What was the trend in capital adjustments for FDI?
Capital adjustments rose to US$8.95 billion, doubling year-on-year, showing foreign investors are expanding existing operations.
What role did share purchases play in the FDI surge?
Capital contributions and share purchases totaled US$3.28 billion, up 73.6% YoY, indicating rising interest in equity-based entry.
Why did newly registered FDI decline slightly?
New FDI fell 9.6% due to a high base effect in 2024, which saw multiple mega-projects exceeding US$100 million each.
Which country was the top FDI source in H1 2025?
Singapore led with nearly US$4.6 billion in investments, accounting for 21.4% of total FDI despite a slight year-on-year decline.
Which countries followed Singapore in FDI contributions?
South Korea, China, Japan, Malaysia, and Sweden were key contributors, with South Korea doubling its FDI year-on-year.
Which country showed the biggest leap in FDI ranking?
Sweden rose 59 places due to a US$1 billion investment in polyester recycling, reflecting growing green investment trends.
How much did Malaysia invest in H1 2025?
Malaysia contributed around US$1.59 billion, rising 20 places due to a major capital injection into Hanoi’s Yen So Park.
Which Vietnamese city received the most FDI in H1 2025?
Hanoi led all localities with US$3.66 billion in FDI, a 2.8-fold increase compared to the same period last year.
Which other provinces attracted significant FDI?
Bac Ninh, Ho Chi Minh City, Dong Nai, Ha Nam, and Ba Ria–Vung Tau also received substantial FDI in the first half of 2025.
What does the rise in capital adjustments suggest?
It signals strong investor commitment and confidence, with many foreign businesses scaling up their existing projects.
How did FDI impact real estate in Vietnam?
Real estate attracted US$5.17 billion, accounting for 24% of total FDI and doubling compared to H1 2024.
What investment types are driving the surge?
Capital adjustments and equity contributions are the fastest-growing components, reflecting strategic reinvestment and M&A activity.
What is Vietnam’s appeal to foreign investors?
Vietnam offers political stability, trade agreement access, low operational costs, skilled labor, and a growing consumer market.
What FTAs help boost Vietnam’s FDI appeal?
Trade agreements like CPTPP, EVFTA, and RCEP enhance Vietnam’s access to global markets, reducing tariffs and regulatory risk.
Are green and sustainable sectors gaining FDI attention?
Yes, sectors like recycling, water treatment, and environmental tech are increasingly attracting foreign capital.
What’s driving the shift from new to adjusted FDI?
Foreign firms are finding value in expanding existing operations and acquiring local companies instead of starting from scratch.
Is Vietnam still attractive despite global uncertainty?
Yes, Vietnam’s stable macroeconomic policies and supply chain resilience make it a safe, high-growth destination for global investors.
What are the risks of investing in Vietnam?
While Vietnam is attractive, investors should be aware of regulatory updates, land use policies, and regional disparities in infrastructure.
How can foreign investors enter Vietnam’s market?
Entry options include greenfield investments, M&A, joint ventures, capital contributions, and share purchases.
Which sectors offer long-term FDI potential?
Manufacturing, logistics, renewable energy, high-tech, and industrial real estate are top sectors for long-term FDI growth.
Is Vietnam’s FDI performance sustainable?
With policy support, infrastructure investment, and a clear development strategy, Vietnam’s FDI outlook remains highly sustainable.
What is the outlook for H2 2025 and beyond?
Continued capital inflows are expected, especially in digital economy, ESG sectors, and advanced manufacturing zones.
How does Vietnam compare to regional peers in FDI?
Vietnam stands out in ASEAN due to its competitive costs, stable environment, and rapidly improving investment infrastructure.
What strategies should foreign investors adopt in 2025?
Investors should prioritize scalable sectors, align with national development goals, and explore M&A or reinvestment strategies.
Sources
- vietnamplus.vn
- vneconomy.vn
- vietnamnews.vn
- vietnamnet.vn
- Ministry of Planning and Investment – Foreign Investment Agency (FIA)
- General Statistics Office of Vietnam (GSO)
