Foreign Investment in Vietnam Increases Due to Reinvestments and Share Acquisitions
In the first seven months of 2025, Vietnam attracted a significant influx of foreign direct investment (FDI), totaling $24.1 billion - a 27% increase year-on-year. Singapore, China, Sweden, Japan, Taiwan (China), and Hong Kong emerged as the principal foreign investors driving this growth.
Leading the pack is Singapore, with 28.3% of the total newly registered capital. Singapore's dominant position reflects its strategic partnership and strong investment ties with Vietnam. China follows closely with 23% of the total, while Sweden, Japan, Taiwan, and Hong Kong each account for around 7% of the investment.
Vietnam's attractive features for these investors include a young and skilled workforce, a stable political environment, investor-friendly legal reforms, competitive costs, improving infrastructure, and its integration into key global trade agreements such as EVFTA, CPTPP, and RCEP.
The sectors that benefited most from this investment include manufacturing and processing, real estate, and high-tech industries including AI, semiconductors, electronics, and telecommunications. Notably, Hung Yen province attracted over $840 million in investment, driven by industrial upgrades, policy reforms, and growing investor confidence in the province's development prospects.
The manufacturing sector, in particular, saw a positive trend, with foreign investors pouring around $1.6 billion, making up approximately 40% of the total. This sector's growth in July marked a positive trend for the Vietnamese economy.
The tightening of FDI approvals with inspection regulations on outdated technology shows a commitment to environmental and technological compliance in Vietnam. From 2025, outdated technology is no longer tolerated in investment projects, compelling foreign-invested enterprises in Vietnam to meet higher standards.
Disbursed FDI in the first seven months reached around $13.6 billion, up 8.4% on-year - the highest level for the period in the past five years. The processing and manufacturing industry attracted the most new capital, with just over $5.6 billion.
The commitments of numerous corporations to expand their investments in Vietnam are the fruitful results of the government's efforts to broaden investment opportunities while actively supporting investors. The Virgin Islands rounded out the list with just over $300 million, roughly 3% of the total.
In conclusion, the top foreign investors in Vietnam by FDI in 2025 are Singapore, China, Sweden, Japan, Taiwan (China), Hong Kong, and the Virgin Islands. Their substantial investments have contributed to Vietnam's robust FDI inflows and the growth of various sectors, particularly manufacturing and high-tech industries.
- The growth in Vietnam's high-tech industries, such as AI, semiconductors, electronics, and telecommunications, is fueled largely by investments from leading foreign investors like Singapore, China, Japan, Sweden, Taiwan (China), Hong Kong, and the Virgin Islands.
- Vietnam's commitment to environmental and technological compliance is evident in the tightening of FDI approvals, with inspection regulations on outdated technology, compelling foreign-invested enterprises to meet higher standards, particularly from 2025 onwards.
