Vietnam’s Foreign Direct Investment (FDI) in the First Four Months of 2025: A Comprehensive Overview

Official Government Announcement

As of April 30, 2025, Vietnam has attracted a total of $13.82 billion USD in registered Foreign Direct Investment (FDI), marking an impressive 39.9% increase compared to the same period in the previous year. This surge underscores the nation’s growing appeal as a prime investment destination in Southeast Asia.

The Ministry of Planning and Investment attributes this growth to several key factors:

• Policy Reforms: Implementation of more transparent and investor-friendly policies.
• Infrastructure Development: Enhanced logistics and industrial park facilities.
• Skilled Workforce: Availability of a young and adaptable labor force.
• Trade Agreements: Active participation in global trade agreements provides broader market access.

These factors collectively contribute to Vietnam’s robust economic performance and its attractiveness to foreign investors.

Investment Breakdown

By Investment Type

• New Projects: 1,204 new projects were licensed, totaling $5.59 billion USD, a decrease of 23.8% in value but a 14.1% increase in the number of projects compared to the same period last year.
• Capital Adjustments: Existing projects registered additional capital amounting to $6.4 billion USD, nearly quadrupling the figure from the previous year.
• Mergers & Acquisitions (M&A): Foreign investors participated in 1,106 capital contribution and share purchase deals, totaling $1.83 billion USD, doubling the value from the same period last year.

By Sector

• Processing and Manufacturing: Dominated with $8.37 billion USD, accounting for 69.8% of total registered FDI.
• Real Estate: Secured $2.63 billion USD, representing 21.9%.
• Electricity, Gas, and Water Distribution: Attracted $0.27 billion USD, making up 3.9%.

By Country of Origin

• Singapore: Led with $1.6 billion USD, accounting for 28.6% of the total.
• China: Followed closely with $1.52 billion USD (27.1%).
• Japan: Contributed $573.2 million USD (10.3%).

These figures highlight the diverse sources of FDI and the strong interest from neighboring Asian economies.

FDI Distribution by Provinces and Cities

In the first four months of 2025, foreign direct investment was not only significant in total value but also showed clear concentration in several key provinces and cities, reflecting regional economic dynamics and investment attraction policies:

• Ho Chi Minh City remained the leading destination, attracting approximately $4.5 billion USD in registered FDI, leveraging its well-developed infrastructure, large consumer market, and status as the financial and commercial hub of Vietnam.
• Binh Duong Province followed closely, drawing in $2.3 billion USD, due to its industrial park network and proximity to Ho Chi Minh City, making it attractive for manufacturing and logistics.
• Hanoi, the political capital, secured about $1.7 billion USD, focusing on high-tech industries, finance, and services.
• Other provinces with notable FDI inflows included Hai Phong, Dong Nai, and Can Tho, benefiting from strategic locations near ports, airports, and trade corridors.

These provinces and cities have actively enhanced their business environments by simplifying administrative procedures, investing in infrastructure upgrades, and offering targeted incentives to foreign investors. The pattern underscores Vietnam’s multi-polar growth model, where multiple regions contribute to the national economy by specializing in different industrial and service sectors.

FDI Disbursement

The actual disbursement of FDI in the first four months reached $6.74 billion USD, marking a 7.3% increase compared to the same period last year. This is the highest disbursement recorded in the first four months over the past five years.

• Processing and Manufacturing: Received $5.5 billion USD, constituting 81.6% of the total disbursed capital.
• Real Estate: Attracted $533.1 million USD (7.9%).
• Electricity, Gas, and Water Distribution: Secured $266.2 million USD (3.9%).

This steady disbursement indicates a healthy and active FDI environment, with funds being effectively utilized in key sectors.

Economic Context

Vietnam’s macroeconomic indicators remain stable and positive:

• Consumer Price Index (CPI): Increased by 0.07% in April, with a year-to-date rise of 3.2%.
• State Budget Revenue: Achieved 48% of the annual target, up 26.3% year-on-year.
• State Budget Expenditure: Increased by 15.2%, focusing on economic development and social security.
• Export Performance: Total export turnover reached $140.34 billion USD, a 13% increase compared to the same period last year.

These indicators reflect a resilient economy, providing a conducive environment for foreign investment.