Vietnam’s Foreign Direct Investment (FDI) Performance in the First Two Months of 2025

Vietnam reported more than $6.9 billion in foreign direct investment (FDI) in the first two months of the year, an on-year increase of 35.5, according to data from the Foreign Investment Agency (FIA) under the Ministry of Finance.

Overview of FDI in Early 2025

Vietnam continued to be an attractive destination for foreign investors, recording a mix of growth and decline across different FDI categories. While the number of new projects increased, the total registered capital for these projects dropped significantly. However, the surge in additional capital investments and share purchases offset the decline in newly registered capital, leading to overall FDI growth.

New Investment Projects and Capital Adjustments

In the first two months of 2025, Vietnam approved 516 investment projects with a total registered capital of $2.19 billion. This marked a 10% increase in project numbers but a 48.4% decline in registered capital compared to the previous year. Additionally, 256 ongoing projects received further investment, amounting to $4.18 billion, reflecting a 42.2% rise in project numbers and a 7.4-fold increase in capital. In terms of capital contributions and share purchases, 553 transactions were recorded, amounting to $530 billion, which reflected a 26.3% decline in transactions but a significant 88.8% increase in capital. Meanwhile, the total disbursed FDI reached $2.95 billion, representing a 5.4% increase from the previous year.

Sector-wise Distribution of FDI

Foreign investments were distributed across 18 out of 21 economic sectors. The manufacturing and processing industry attracted the largest share, receiving nearly $4.72 billion, which accounted for 68.3% of total FDI, despite experiencing a 50.6% decline compared to the same period last year. The real estate sector followed closely, drawing nearly $1.5 billion, or 21.4% of total investment, which was a 3.4% decrease from the previous year. Other notable sectors included professional services, science, and technology, which attracted $354.6 million, while the wholesale and retail sector received nearly $149 million in investment.

Leading Foreign Investors

South Korea emerged as the largest foreign investor, with $1.5 billion in investments, accounting for 21.7% of total FDI and showing a 5.4-fold increase from the previous year. Singapore followed closely behind with $1.48 billion, representing 21.4% of total FDI, though it saw a 32.9% decline. Other key investors included China, Japan, and Thailand. China led in the number of newly registered projects, accounting for 31% of new investments and 18.8% of capital adjustments. Meanwhile, South Korea dominated share purchases and capital contributions, accounting for 27.1% of these transactions.

FDI by Regional Distribution

Bac Ninh attracted the highest FDI with $1.42 billion, followed by Dong Nai with $1.16 billion, Hanoi with $1.1 billion, Ba Ria-Vung Tau with $544 million, Ho Chi Minh City with $503 million, and Haiphong with $405.6 million. Ho Chi Minh City ranked first in terms of newly registered projects, accounting for 37.8% of the total, adjusted capital projects at 21.9%, and capital contributions and share purchases at 66%.

Trade Performance of Foreign-Invested Enterprises

The foreign investment sector exported goods worth $45.8 billion, including crude oil, or $45.5 billion excluding crude oil. This marked a 5.5% increase and represented 71% of Vietnam’s total exports. Imports for the sector were estimated at $39.9 billion, reflecting a 14% year-on-year increase and covering 63.9% of total imports. Foreign-invested enterprises recorded a trade surplus of nearly $6 billion, including crude oil, or $5.6 billion excluding crude oil, while local businesses faced a trade deficit of $4.4 billion.

Key Takeaways and Outlook

Vietnam remains a strong investment destination, with growth in capital adjustments and share purchases compensating for the decline in newly registered capital. The decrease in new investment capital is attributed to the reduction in large-scale projects, as only four projects exceeded $100 million in scale compared to eight projects during the same period last year. Asian investors continue to lead FDI, with South Korea, Singapore, and China being the top contributors. The manufacturing and processing industry retains its position as the largest recipient of FDI, though investment in the sector has slowed compared to last year. Despite some declines, Vietnam’s FDI landscape remains dynamic, with expectations of continued investment inflows and economic stability in 2025.

Sources: Various sources