Vietnam’s foreign direct investment (FDI) landscape saw a strong start in January 2025, with newly registered capital surging by 48.6% year-on-year, marking the highest growth rate for January since 2021, despite the Lunar New Year holiday. According to the latest report from the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, China emerged as the leading investor in new projects and capital commitments, reinforcing its growing presence in Vietnam’s economy.
China Takes the Lead in FDI Inflows
While the number of new FDI projects declined slightly (down 6.6% on-year) to 280, the total newly registered capital reached nearly $1.29 billion, despite a 43.6% drop in value compared to the same period last year. China accounted for 30.1% of newly registered projects and 29.54% of total capital, solidifying its role as Vietnam’s top investment partner.
Notably, Chinese investments have shifted towards high-tech and green industries, moving beyond traditional sectors such as textiles, footwear, and household goods. Vietnam Association of Foreign Invested Enterprises Vice Chairman Nguyen Van Toan emphasized that new Chinese projects now focus on high-tech manufacturing, electronic components, green energy, electric vehicles, and e-commerce, reflecting Vietnam’s increasing appeal as a destination for advanced industries.
Major Chinese Corporations Investing in Vietnam
Several global-scale Chinese corporations have committed to setting up manufacturing facilities in Vietnam, including BYD, Radian, Brotex, and Quanta Computer. Key suppliers to multinational giants like Apple and Samsung—such as Goertek and Foxconn—have also expanded operations in Vietnam after evaluating other markets.
Nguyen Thi Hong Chuyen, Deputy General Director of industrial park developer Capella Land, highlighted that Chinese investors now demand higher standards for their projects.
“They require synchronized and modern infrastructure, multimodal transport connections, and access to large land areas for rapid deployment,” Chuyen said. “They are prioritizing energy-efficient solutions and expect quick, on-time handovers of industrial spaces, which aligns with their aggressive expansion strategies.”
For large-scale Chinese investments, land rental costs are no longer the key deciding factor. Instead, investors focus on contract negotiations to ensure high-quality project execution, reflecting their long-term commitment to Vietnam’s industrial sector.
The solar power farm in Ninh Thuan province.Green Energy and Infrastructure Projects Gain Momentum
Vietnam’s renewable energy and infrastructure sectors are also attracting significant Chinese investment. In late 2024, China Huadian Corporation and Energy China Group announced expansion plans in clean energy and electricity distribution. Huadian has invested $2.8 billion in Vietnam so far, including Duyen Hai 2—the company’s first foreign onshore wind power project. It aims to expand in wind power, hydropower, energy storage, and efficiency solutions, urging the Vietnamese government to accelerate green energy policies. Energy China Group, which is overseeing 16 projects worth $2.2 billion in Vietnam, is keen to develop liquefied natural gas (LNG) power plants, offshore wind farms, and transport projects, provided Vietnam implements a stable electricity pricing mechanism.
Meanwhile, Chinese infrastructure giants such as China Pacific Construction Group and Susun Construction Group led a delegation of 18 major enterprises to Vietnam in December 2024, exploring cooperation opportunities in key projects. China Pacific Construction has been invited to participate in strategic initiatives such as: The Tu Lien Bridge in Hanoi; The expansion of Hanoi’s metro system; A high-speed rail link connecting Tan Son Nhat and Long Thanh international airports; Cross-border rail and highway projects between Vietnam and China
Expert Insights: A Positive Outlook for Vietnam’s FDI Growth
Sophie Dao, Senior Partner at GBS, a consulting firm supporting foreign investors in Vietnam, views this surge in Chinese investment as a sign of confidence in Vietnam’s long-term economic prospects. “Vietnam has positioned itself as a premier destination for high-tech and green investments. The government’s commitment to infrastructure development and business-friendly policies continues to attract top-tier investors,” she said. “Chinese corporations, known for their large-scale, fast-moving projects, see Vietnam as a strategic gateway for global expansion. This trend signals Vietnam’s growing role as a high-value manufacturing hub in Asia.”
With strong commitments from Chinese investors and Vietnam’s pro-investment policies, 2025 is set to be a transformative year for FDI, particularly in technology, renewable energy, and infrastructure.
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Source: Vietnam Insider