FOREIGN DIRECT INVESTMENT IN VIETNAM 2025: STABILITY, REINVESTMENT AND THE RETURN OF M&A
According to the General Statistics Office under the Ministry of Finance, as of 30 December 2025, Vietnam’s total registered foreign direct investment (FDI), including newly registered capital, adjusted capital and capital contribution/share purchase by foreign investors, reached approximately USD 38.42 billion, representing a 0.5% year-on-year increase. Notably, disbursed FDI capital was estimated at USD 27.62 billion, up 9% compared to 2024, marking the highest level recorded during the 2021–2025 period, and reaffirming foreign investors’ confidence in Vietnam’s investment environment.
Foreign Direct Investment Structure: Adjusted Capital and M&A as Key Growth Drivers
Newly registered capital continued to account for the largest share, with 4,054 newly licensed projects, up 20.1% in terms of project numbers. However, newly registered capital amounted to USD 17.32 billion, a 12.2% decline year-on-year, reflecting a more cautious approach toward large-scale greenfield investments.
- By sector, manufacturing and processing remained the leading recipient, attracting USD 9.8 billion, or 56.5% of newly registered capital, followed by real estate activities with USD 3.67 billion (21.2%). Other sectors collectively accounted for USD 3.85 billion, or 22.3%.
- In terms of investment partners, Singapore retained its position as the largest investor with USD 4.84 billion, representing 27.9% of newly registered capital. This was followed by China (USD 3.64 billion, 21%), Hong Kong (China) (USD 1.73 billion, 10%), and subsequently Japan, Sweden, Taiwan (China) and South Korea. In terms of the number of new projects, China continued to lead with 1,275 projects, followed by Singapore with 542 projects, highlighting the growing participation of small and medium-sized investors.
Regarding adjusted capital, 1,404 existing projects registered additional investment, with total adjusted capital reaching USD 14.07 billion, up 0.8% year-on-year. When combined with newly registered capital, manufacturing and processing accounted for USD 18.59 billion (59.2%), while real estate reached USD 6.26 billion (19.9%), underscoring the importance of expansion and reinvestment by existing investors.
Meanwhile, capital contribution and share purchase activities surged by 54.8% year-on-year, reaching USD 7.03 billion across 3,587 transactions, signalling a strong revival of M&A activity. Manufacturing remained the largest recipient with USD 2.43 billion (34.6%), while professional, scientific and technological activities ranked second with USD 1.29 billion (18.3%), indicating a shift toward knowledge-intensive and higher value-added investments. Singapore continued to lead in terms of investment value, while South Korea recorded the highest number of M&A transactions.
Long-term Perspective: From China+1 to Reinvestment and Value Upgrading
Against the backdrop of ongoing global economic and geopolitical uncertainties that have weighed on global FDI flows, Vietnam has maintained a relatively stable growth trajectory. Over the 2021–2025 period, total registered FDI increased from USD 31.15 billion to USD 38.42 billion, representing a 23.3% increase, despite the prolonged impacts of the Covid-19 pandemic.
The 2021–2023 period was characterised by a strong China+1-driven relocation wave, with newly registered capital rising from USD 15.25 billion in 2021 to USD 20.18 billion in 2023. In 2024–2025, as this wave gradually stabilised, newly registered capital moderated, while adjusted capital and M&A activities gained prominence, signalling a transition toward reinvestment, capacity expansion and qualitative upgrading of FDI inflows.
At the same time, FDI disbursement reached USD 27.62 billion in 2025, the highest level in the past five years, further reinforcing foreign investors’ long-term confidence in Vietnam’s macroeconomic stability, absorptive capacity and medium- to long-term growth potential.
According to the General Statistics Office, the bright spot in the 2025 FDI picture is the strong increase in disbursed capital. With a total disbursement of $27.62 billion, the manufacturing and processing industry plays a key role, reaching $22.88 billion, accounting for 82.8% of the total disbursed capital FDI nationwide.
Real estate business and the production and distribution of electricity and gas contributed $1.93 billion (7%) and $914.9 million (3.3%) respectively to the overall realization figure. These results affirm the strong confidence of foreign investors in Vietnam’s investment environment and the economy’s ability to absorb capital.
Leave a Reply