Vietnam’s FDI Momentum Signals Strong Global Investor Confidence

Vietnam has kicked off 2025 with an impressive surge in foreign direct investment (FDI), reaffirming its status as one of Asia’s most promising and resilient investment destinations.

According to the National Statistics Office under the Ministry of Finance, foreign investment inflows reached nearly $6.9 billion in the first two months of the year, marking a remarkable 35.5% year-on-year increase. This robust performance highlights the continued trust and long-term vision international investors have in Vietnam’s economic potential.

While newly registered FDI value declined by 48.4% to $2.19 billion—partly due to global uncertainties—the number of new projects actually rose by 10% to 516. This indicates that investors remain highly interested in entering the Vietnamese market, though perhaps with more cautious project sizing during this period.

More notably, additional capital from existing investors surged six-fold to $4.18 billion, a powerful signal of growing confidence among businesses already operating in the country. In parallel, foreign capital contributions and share purchases nearly doubled to $529.8 million, reflecting a strong appetite for mergers, acquisitions, and strategic partnerships.

Sophie Dao, Senior Partner at GBS, a leading business and legal advisory firm in Vietnam, emphasized:

“The surge in reinvestment from existing investors is one of the most encouraging signs of the year. It proves that Vietnam is not just attracting FDI, but retaining it—by offering long-term stability, improving infrastructure, and a government that is actively listening to the business community.”

In early March, Prime Minister Pham Minh Chinh met with foreign business leaders, including Mr. Ko Tae Yeon, Chairman of the Korean Chamber of Commerce in Vietnam (KoCham). He praised Vietnam’s consistent economic reforms and proactive support for foreign businesses. With over 10,000 South Korean companies now operating in Vietnam—particularly in high-tech, energy, and manufacturing—South Korea continues to be a strategic FDI partner.

Looking ahead, South Korean businesses are eyeing new sectors such as semiconductors, EV batteries, biotechnology, and green energy, signaling major upcoming investments.

Similarly, Japanese enterprises are also placing Vietnam at the top of their emerging market priorities. A recent survey found that 56% of Japanese companies plan to expand in Vietnam within the next two years—the highest percentage among ASEAN countries. Ambassador Ito Naoki described Vietnam as one of the region’s most dynamic economies, thanks to its growth trajectory and ongoing administrative reforms.

The manufacturing and processing sector remains the cornerstone of Vietnam’s FDI appeal, attracting $4.51 billion or over 70% of total newly-registered and additional capital. However, investment is also diversifying, with strong growth in financial services, logistics, and other high-value sectors.

Disbursed FDI capital in the first two months reached $2.95 billion, a 5.4% increase year-on-year and the highest for any Jan–Feb period in recent years—demonstrating not only strong commitments but also efficient project execution.

Asian investors continue to lead the way, with South Korea ($1.47 billion), Singapore ($1.4 billion), and China ($850 million) as the top sources of capital. Chinese investors, in particular, have taken the lead in new project registrations, contributing over $679 million, or 31% of newly-registered capital.

Sophie Dao added:

“Vietnam’s FDI story in 2025 is one of resilience, reform, and readiness. Global investors are seeing more than just cost advantages—they’re seeing a country that is positioning itself at the center of next-generation supply chains, digital transformation, and green growth. It’s the right time to invest in Vietnam.”

With its strong economic fundamentals, supportive leadership, and rapidly evolving business landscape, Vietnam stands out as a strategic gateway to Asia for global investors in 2025 and beyond.