FDI inflows in first four months soar nearly 40 per cent

FDI inflows in the first four months in 2021-2025

In the first four months of 2025, 1,204 new projects were granted investment registration certificates, with total registered capital of $5.59 billion, up 14.1 per cent in the number of projects but down 23.8 per cent on-year in terms of capital.

The adjusted capital for 540 ongoing projects hit over $6.4 billion, up almost 44.4 per cent on-year in number, and 3.9-fold in capital. There were 1,106 capital contributions and share purchases valued at almost $1.83 billion, up 8.3 per cent and 2.1-fold, respectively.

Additionally, disbursed FDI reached about $6.74 billion, up 7.3 per cent on-year.

Foreign groups invested in 18 out of the 21 economic sectors in the first four months of the year. Among them, the manufacturing and processing industry took the lead with over $8.9 billion, accounting for 64.6 per cent of the total, and a 35.1 per cent increase from a year ago.

Real estate followed with over $2.83 billion, capturing 20.5 per cent of the total and up 61.9 per cent on-year. This was followed by professional, science, and technology, and accommodation and catering services, with $611 million and nearly $352 million, respectively.

Among 81 countries and territories investing in Vietnam during the period, Singapore was the largest foreign investor, with more than $3.2 billion, or 23.5 per cent of the total, up 10 per cent on-year. South Korea ranked second with nearly $2.8 billion, accounting for 20.4 per cent and up 3.3-fold on-year. It was followed by China, Japan, and Hong Kong.

In terms of project numbers, China ranked first for newly registered projects (accounting for 28.7 per cent), South Korea led for adjusted-capital projects (making up 18 per cent), and capital contributions and share purchases (26.4 per cent).

FDI continued to flow into the attractive localities like Bac Ninh ($2.69 billion), Dong Nai ($1.52 billion), Ho Chi Minh City ($1.48 billion), and Hanoi, Ba Ria-Vung Tau, and Ha Nam.

In terms of project numbers, Ho Chi Minh City ranked first for newly registered projects (making up 39.5 per cent), adjusted-registered projects (21.9 per cent), and capital contributions and share purchases (66.9 per cent).

Exports from the foreign investment sector reached $45.8 billion (including crude oil), or $45.5 billion (excluding crude oil), up 5.5 per cent on-year, and equivalent to more than 71 per cent of total export turnover.

Imports for the sector were estimated at $84.9 billion, up 16.6 per cent on-year, and covering 62.9 per cent of the total. The trade surplus of foreign-invested enterprises was almost $15.4 billion (including crude oil) or $14.9 billion (excluding crude oil), while the deficit of local businesses was $10.4 billion.

FDI inflows can be growth innovator Vietnam stands at a critical juncture in its economic transformation. Emerging technologies like AI and semiconductors offer a rare chance to move beyond low-cost manufacturing and become a regional innovation hub. To be a leader of Southeast Asia’s digital future, Vietnam should accelerate the sustained effort to attract the next wave of foreign investment and help shape the region’s tech landscape.

Vietnam - an exception in terms of FDI attraction The Vietnam Association of Foreign-Invested Enterprises (VAFIE) released its annual report on foreign direct investment (FDI) for 2024 on April 16, affirming the potential Vietnam has to become a semiconductor manufacturing hub.

Boosting high-tech FDI To achieve rapid economic growth in the coming years, accelerating the attraction of high-quality, high-tech foreign investment, which currently accounts for only 5 per cent of the country's total inflows, requires a lot of effort and improvement to become a breakthrough driving force.

Vietnam continues global value climb Nearly 40 years since opening the doors to the wider world, Vietnam’s development has witnessed great strides, with foreign investment serving as one of the key drivers. However, further climbing global value chains becomes more complicated.