FDI INFLOWS ON TRACK FOR 2025 SCENARIO

Impressive growth in both registered capital and disbursement in the first half of 2025 has reinforced investor trust in Vietnam’s investment environment, while also providing a solid foundation to achieve the year’s target.

Total foreign direct investment poured into Vietnam in the first half of 2025 reached more than $21.51 billion, marking a 32.6 per cent increase compared to the same period in 2024, according to the Foreign Investment Agency under the Ministry of Finance. The figure includes newly registered, adjusted, and contributed capital.

In the period, approximately 1,990 new projects were licensed, up 21.7 per cent on-year, with total registered capital standing at nearly $9.3 billion. Meanwhile, there were 826 capital adjustment transactions (up 31.1 per cent) with additional capital reaching almost $8.95 billion, more than 2.2 times higher than the same period last year.

Over 1,700 transactions of capital contribution and share purchases were recorded (up 7.6 per cent), with a total value exceeding $3.28 billion, up 73.6 per cent on-year.

Both Malaysia and Sweden recorded exceptional growth in terms of investment in Vietnam. Malaysia climbed 20 positions from the same period last year, driven by a capital increase of $1.12 billion for the Yen So park project in Hanoi. Sweden rose 59 places, largely due to a new $1 billion project to build a polyester recycling and textile waste-to-plastic pellet production complex in the Nhon Hoi Economic Zone in the central province of Gia Lai.

Swedish-backed textile company Syre Group in April announced an MoU with the former central province of Binh Dinh, now part of Gia Lai. The MoU reflects a partnership with the intention of establishing Syre’s first gigascale recycling plant.

“With an investment of $1 billion, Syre is guiding Vietnam to become the first global centre for circular garments, applying high technology according to US and EU standards, in line with Vietnam’s sustainable development orientation,” said Susanna Campbell, president of Syre Group.

According to the European Chamber of Commerce in Vietnam’s Business Confidence Index for H2 of 2025, nearly 72 per cent of European business leaders are willing to recommend Vietnam as an investment destination.

“This steady confidence stands in contrast to the growing turbulence in global markets. As international trade tensions mount and supply chains remain under pressure, European businesses in Vietnam are showing remarkable resilience,” said Bruno Jaspaert, chairman of the European Chamber of Commerce in Vietnam.

The trust also comes from the effort to improve the investment environment. For example, since May, the Ministry of Industry and Trade has taken over the C/O issuance process with plans to roll out a fully digital system nationwide. The digital transition is expected to reduce paperwork, improve turnaround times, and integrate more seamlessly with digital customs systems and electronic signatures.

Land rental prices in industrial parks are typically cheaper than those in Thailand and other countries in the region. For example, industrial real estate market reports by CBRE Vietnam and Savills Vietnam show that land rental prices in industrial areas in Vietnam are $80-120 per square metre, while the prices in Thailand are at $150-200. These reports compare land rental costs in IPs such as VSIP, DEEP C, and Saigon-Long An Industrial Park with other countries in the region.

“Special investment procedures are simplified under the amended Investment Law, with no need to assess fire prevention, environmental, and construction before granting investment licences for some strategic projects,” said Nguyen Hong Chung, chairman of DVL Ventures and vice president of the Vietnam Industrial Parks Finance Association.

“Furthermore, a one-stop investment support service centre on site model is being piloted in some localities such as former Bac Giang, Vinh Phuc, and Quang Ninh. Along with that, the government is promoting investment process reform, allowing to shorten the licensing time to be shortened from 250 days to about 15-30 days for high-tech projects - this is very valuable for large investors,” said Chung.

Foreign investment commitments to expand operations are being implemented in Vietnam. For example, in late June, during the prime minister’s trip to Europe, leaders from corporations such as Visa, Amazon Web Services, and Trip.com, and especially tech giants like Google, Siemens, Qualcomm, and Ericsson, shared their intentions to invest and expand activities in the country, particularly in technology, semiconductors, and AI.

Besides semiconductor projects, sectors like electronics are expected to continue attracting significant investment, as manufacturers such as Foxconn and Goertek plan to expand their investments in Vietnam.

Goertek’s leadership stated that in 2025, Goertek will invest in a new project and bring more experts and new technology equipment to Vietnam. The firm has so far invested over $1.3 billion in the northern province of Bac Ninh to build four factories specialising in electronics and drone equipment.

Source: VIR