FDI JUMPS MORE THAN 50 PER CENT IN THE FIRST FIVE MONTHS OF 2025

Foreign direct investment (FDI) trends in Vietnam showed divergent trends in the first five months of 2025. While newly registered capital declined, adjusted investments, capital contributions, and share purchases surged – driving overall foreign investment inflows.

Long Son Petrochemical Complex stands as one of Vietnam’s most significant foreign-invested projects of 2025

In the first five months of 2025, Vietnam reported $18.4 billion in FDI, an increase of 51 per cent on-year, according to the Foreign Investment Agency (FIA) under the Ministry of Finance.

Of this, almost 1,550 new projects were granted investment registration certificates, with total registered capital of just over $7 billion, up 14 per cent in terms of projects and down a little over 13 per cent on-year for capital.

The adjusted capital for the around 670 ongoing projects climbed $8.51 billion, an almost 3.5-fold on-year jump. There were also just over 1,350 capital contributions and share purchases valued at almost $2.85 billion, an increase of 80 per cent on-year.

Foreign groups invested in 18 out of the 21 economic sectors in the first five months. Among them, the manufacturing and processing industry took the lead with nearly $10.4 billion, accounting for almost 56.5 per cent of the total, and a close to 32 per cent increase from a year ago.

Real estate followed with a little under $5 billion, capturing 27 per cent of the total and doubling over the same period last year. This was followed by professional activities, and science and technology, wholesale and retail, with around $1 billion and $600 million, respectively.

Among 87 countries and territories investing in Vietnam in the first five months, Singapore was the largest foreign investor, with nearly $4.4 billion, or 24 per cent of the total, and up 30 per cent on-year. South Korea ranked second with nearly $2.9 billion, accounting for 16 per cent and up 147 per cent on-year. It was followed by China, Japan, and Malaysia.

In terms of project numbers, China ranked first for newly registered projects (accounting for 29 per cent), and South Korea ranked first for adjusted registered capital (18.5 per cent), and capital contributions and share purchases (approx 26 per cent).

Meanwhile, Malaysia, Thailand, and the Cayman Islands reported a significant rise in the rankings. Malaysia climbed 20 places on-year thanks to its part in Hanoi’s Yen So Park with total additionally registered capital of over $1.1 billion; Thailand jumped seven places thanks to putting an additional $400 million into the Southern Petrochemical Complex in Ba Ria-Vung Tau province; and after the Cayman Islands poured almost $305 million into the Berjaya – Handico12 Residential and Commercial Project, the British Overseas Territory went up nine places.

52 cities and provinces welcomed FDI inflows in the first five months. Hanoi took the lead with $3.2 billion, equivalent to 17.6 per cent of the total and a 2.8-fold increase. It was followed by Bac Ninh ($2.7 billion), Ho Chi Minh City ($2.6 billion), Dong Nai ($1.6 billion), and Ba Ria-Vung Tau ($1 billion).

Source: VIR