Vietnam’s foreign direct investment (FDI) inflows continue to rise, reflecting the country’s resilience and attractiveness as a regional investment hub.
In February 2025, FDI inflows reached $2.95 billion, marking a 5.4% increase year-on-year, while FDI pledges—a key indicator of future disbursements—jumped 35.5% to $6.90 billion, according to the Ministry of Planning and Investment.
South Korea and Singapore Lead Investment Surge
Among Vietnam’s key investors, South Korea topped the list, contributing $1.5 billion (21.7% of total FDI) in the first two months of the year, followed closely by Singapore with $1.48 billion (21.4%). China led in new projects (31%) and capital adjustments (18.8%), while South Korea dominated share purchases and capital contributions (27.1%).
Manufacturing and Real Estate Remain Key Investment Sectors
Vietnam’s manufacturing and processing industries remained the largest recipients of FDI, attracting $4.72 billion, accounting for 68.3% of total inflows, a significant 50.6% increase from the previous year.
Meanwhile, real estate remained the second-largest sector, receiving $1.5 billion (21.4%), though slightly down 3.4% year-on-year. Other high-growth sectors included professional services, science & technology, and retail, securing $354.6 million and $149 million, respectively.
Vietnam’s Long-Term FDI Growth Remains Strong
For the full year of 2024, FDI inflows into Vietnam rose 9.4% to $25.35 billion, while FDI pledges increased by 3% to $38.23 billion, reinforcing the country’s position as a top investment destination in Southeast Asia.
Commenting on Vietnam’s FDI momentum, Sophie Dao, Senior Partner at Global Business Services LLC (GBS), emphasized the country’s strategic advantages and investor-friendly policies.
“Vietnam’s sustained FDI growth reflects its strong manufacturing capabilities, skilled workforce, and commitment to economic reforms. Investors are increasingly drawn to the country’s competitive labor costs, extensive free trade agreements, and improving infrastructure,” Dao stated.
She also highlighted the government’s proactive efforts to attract foreign capital, including investment incentives, streamlined regulations, and infrastructure upgrades.
“With the Vietnamese government’s continued focus on economic liberalization and industrial development, we expect to see further diversification in investment, particularly in high-tech industries, renewable energy, and digital transformation,” she added.
Vietnam’s Outlook for Foreign Investors
As FDI pledges continue to rise, Vietnam is well-positioned to capitalize on shifting global supply chains, particularly as companies look for alternatives to China. The strong manufacturing, real estate, and technology sectors provide foreign investors with exciting opportunities for growth in one of Asia’s fastest-growing economies.
With robust investor confidence, favorable trade agreements, and strategic market positioning, Vietnam remains a top destination for international investment in 2025 and beyond.
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Source: Vietnam Insider