Vietnam’s Registered Foreign Investment Surges Nearly 40% in First Four Months of 2025

Vietnam is fast solidifying its position as a regional investment hub, with registered foreign direct investment (FDI) soaring to $13.82 billion in the first four months of 2025—a remarkable 39.9% increase year-on-year, according to the Foreign Investment Agency under the Ministry of Finance.

This surge, which includes newly registered capital, capital adjustments, and share acquisitions, marks the strongest FDI inflow performance in five years.

Robust Capital Inflows Despite Changing Investment Patterns

While the number of newly licensed projects jumped to 1,204, up 14.1% from the same period last year, the total capital committed to these new projects reached $5.59 billion, representing a 23.8% decline.

However, the manufacturing and processing sector remains the top magnet, attracting $3.39 billion or 60.6% of new capital, followed by real estate, which drew $1.51 billion (26.9%).

Singapore Leads the Way, Followed by China and Japan

Among the 60 countries and territories with new investment projects in Vietnam, Singapore topped the list, contributing $1.6 billion (28.6%). It was followed closely by China ($1.52 billion, 27.1%) and Japan ($573.2 million, 10.3%).

Capital Adjustments and M&A Activity Drive Overall Growth

The impressive rise in total registered capital was fueled primarily by capital expansion in existing projects and vibrant merger and acquisition activity. In total, 540 existing projects registered additional capital worth $6.4 billion—3.9 times higher than the same period in 2024.

In parallel, foreign investors made 1,106 capital contributions and share purchases, with a total value of $1.83 billion, double the previous year’s figure.

When combining both new and adjusted capital, the manufacturing and processing sector maintained a dominant share at $8.37 billion (69.8%), followed by real estate at $2.63 billion (21.9%).

FDI Disbursement Hits 5-Year High

FDI disbursement—a key indicator of actual capital flow into the economy—reached an estimated $6.74 billion, up 7.3% year-on-year. This is the highest level of FDI disbursement in the first four months of any year over the past five years.

Notably, $5.5 billion (81.6%) of this amount was channeled into manufacturing and processing, while real estate and power generation/distribution attracted $533.1 million (7.9%) and $266.2 million (3.9%), respectively.

Vietnamese Investments Abroad Also on the Rise

Vietnamese outbound investment also witnessed significant momentum. In the first four months of 2025, Vietnamese companies invested a total of $309.3 million abroad, a 3.1-fold increase year-on-year.

This includes 43 new projects with $269.2 million in registered capital and 12 existing projects with additional capital of $40.1 million. Key investment sectors include electricity and gas distribution ($111.2 million), manufacturing ($65.6 million), and logistics and transportation ($50.5 million).

Laos remains the top destination, attracting $140.6 million, or 45.5% of total outbound investment, followed by Indonesia and the Philippines.

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Source: Vietnam Insider