Sizeable investments signal FDI bright spot

A standout development in the country’s foreign direct investment (FDI) performance in the first two months of 2026 was the licensing of a $1.2 billion complex in high-end printed circuit board manufacturing, marking the re-emergence of large-scale investments in the technology space.

According to the Foreign Investment Agency (FIA), which is under the Ministry of Finance, the investment, which the investor currently wishes to keep the details of under wraps, represents a bright spot in attracting major high-tech investments.

“Its implementation underscores Vietnam’s policy of selective FDI attraction, prioritising advanced technologies, high value-added ventures and stronger links with domestic enterprises,” the agency noted in a report in early March.

Supported by this undertaking, total registered FDI in the first two months of 2026 exceeded $6 billion. While this marks a 12.6 per cent on-year decline, the figure remains relatively positive given heightened geopolitical tensions in the Middle East and ongoing volatility in global trade and tax policies.

“Multinational corporations are increasingly adopting a cautious approach, focusing on optimising existing supply chains and reassessing overseas expansion plans,” said Van Duc Phu from the FIA’s northern Investment Promotion, Information and Support Centre.

“Yet, the restructuring of supply chains across Asia-Pacific continues, with Vietnam maintaining its appeal thanks to political stability, an extensive network of free trade agreements and a strategic position within regional manufacturing ecosystems,” he added.

FIA data showed that newly registered FDI reached $3.43 billion in February alone, up 34 per cent from January’s $2.57 billion. Meanwhile, disbursed FDI continued its upward trajectory, estimated at over $3.2 billion, an 8.8 per cent increase on-year.

“This is a positive signal at a time when global FDI flows are becoming more cautious, ongoing schemes are being implemented on schedule and expanded, reflecting sustained investor confidence in Vietnam’s business environment,” said Phu.

Despite these encouraging signs, challenges persist. Newly registered capital additions and capital contributions through share purchases have declined to $2 billion and $499 million, equivalent to a drop of 52.3 and 5.7 per cent on-year, respectively. Moreover, most new projects remain small to medium in scale, suggesting that investors are still in a cautious, exploratory phase.

These figures reflect that existing investors, too, are taking a more measured approach to expansion amid global economic uncertainties.

“Even so, Vietnam’s long-term prospects remain strong. Rising disbursement levels and an increase in new project numbers indicate that foreign investors continue to place confidence in the market,” Phu said.

Recent moves by major international players further underscore this trend. US-based GE Vernova selected Vietnam as the first Asian host of its annual energy forum, which took place on March 10 in Hanoi, bringing together more than 100 global energy leaders, and 300 local experts, businesses, and policymakers.

During a meeting with Vietnam’s Party General Secretary To Lam earlier this month, GE Vernova CEO Scott Strazik reaffirmed the company’s long-term commitment. “We are ready to act as a bridge between businesses and governments while supporting Vietnam’s energy security and broader development goals,” he said.

Meanwhile, two weeks ago, Andy Lin, vice chairman of Cooler Master from China, arrived at Bac Ninh province to explore plans of expanding its investment to as much as $3 billion for computer hardware manufacturing.

Other developments also point to growing interest in high-tech sectors in the first two months of this year. For example, Starlink was licensed to deploy low-Earth orbit satellite internet services in Vietnam in February.

Elsewhere, G42 from the UAE is collaborating with FPT and Viet Thai Group to develop a $2 billion AI data centre, tentatively planned for Ho Chi Minh City. The agreement aims to build the most advanced AI and cloud computing infrastructure in Vietnam, affirming the long-term investment commitment of all parties in the digital infrastructure sector.

Investment firms such as Vantage Point Asset Management are also eyeing opportunities in finance and fintech.

Neil MacGregor, CEO of Savills Vietnam, said, “Vietnam has moved beyond a low-cost investment model, with capital increasingly flowing into high-value sectors such as advanced manufacturing, electronics, modern logistics and globally integrated industries.”

However, the FIA cautioned that geopolitical tensions, particularly in the Middle East, could continue to drive up energy, logistics and supply chain costs, directly affecting production, exports and investment decisions. Close monitoring and timely policy responses will therefore be essential to sustain momentum in attracting high-quality FDI, it said.