Foreign Direct Investment in Vietnam experiences a significant increase due to robust reinvestment and share acquisitions

Foreign Direct Investment in Vietnam experiences a significant increase due to robust reinvestment and share acquisitions

In the first seven months of 2025, Vietnam witnessed a significant surge in foreign direct investment (FDI), attracting approximately $24.1 billion, a 27% increase from the previous year [1][3]. The processing and manufacturing sector led the way, accounting for nearly 56% of the newly registered capital, amounting to around $5.6 billion [1][3].

The real estate sector followed closely, with approximately 24% of the total FDI, equating to around $2.4 billion [1][3]. Other sectors combined accounted for about 21% of the newly registered capital [1][3].

Singapore emerged as the leading country investing in Vietnam, contributing just over $2.8 billion, or nearly 30% of the newly registered FDI [1][3]. China followed closely with nearly $2.3 billion, accounting for 23% of the new FDI [1][3]. Sweden, Japan, Taiwan, and Hong Kong also made significant investments, with Sweden contributing around $1 billion, Japan just under $870 million, Taiwan over $700 million, and Hong Kong over $700 million [1][3].

Ho Chi Minh City alone attracted nearly $6.2 billion in FDI during the first seven months of 2025, with a notable focus on the high-tech sector [4].

In total, more than 2,250 new projects were licensed with total pledged capital exceeding $10 billion [1][3]. The remaining sectors attracted approximately $1.65 billion, making up 40% of the total FDI [1][3].

Notably, Vietnam tightened FDI approvals with inspection regulations on outdated technology, compelling foreign-invested enterprises to meet higher standards in environmental and technological compliance from 2025 [1].

The Vietnamese manufacturing sector returned to growth in July as new orders supported a faster rise in production [2]. Hung Yen attracted over $840 million in investment in seven months, driven by industrial upgrades, policy reforms, and growing investor confidence in the province's development prospects [2].

The commitments of numerous corporations to expand their investments in Vietnam are the fruitful results of the government's efforts to broaden investment opportunities while actively supporting investors [1].

Here's a summary of the data:

| Sector | Approximate Share of Newly Registered Capital | Approximate Value (USD) | |----------------------------|-----------------------------------------------|------------------------| | Processing & Manufacturing | 56% | $5.6 billion | | Real Estate | 24% | $2.4 billion | | Other Sectors Combined | 21% | $2 billion |

| Country | Approximate FDI Value (USD) | Share of New Registered FDI | |------------|-----------------------------|-----------------------------| | Singapore | $2.8 billion | 30% | | China | $2.3 billion | 23% | | Sweden | $1 billion | 10% | | Japan | $870 million | 9% | | Taiwan | $700+ million | 7% | | Hong Kong | $700+ million | 7% |

This data reflects strong investor confidence in Vietnam’s manufacturing and real estate sectors and highlights Singapore and China as leading foreign investors in 2025 [1][3][4].

[1] Vietnam Briefing. (2025). Foreign Direct Investment in Vietnam: January - July 2025. Retrieved from https://www.vietnam-briefing.com/news/foreign-direct-investment-in-vietnam-january-july-2025.html

[2] Vietnam Investment Review. (2025). Manufacturing sector sees growth in July. Retrieved from https://www.vir.com.vn/manufacturing-sector-sees-growth-in-july-134547.html

[3] VietnamNet Bridge. (2025). FDI inflow rises 27% in seven months. Retrieved from https://en.vietnamnet.vn/fdi-inflow-rises-27-in-seven-months-750214.html

[4] Vietnam Insider. (2025). Ho Chi Minh City attracts nearly $6.2 billion in FDI in seven months. Retrieved from https://vietnaminsider.vn/ho-chi-minh-city-attracts-nearly-6-2-billion-in-fdi-in-seven-months-341516.html

1. Foreign investors demonstrated substantial interest in Vietnam's finance sector, as indicated by the significant investments made by Singapore, China, Sweden, Japan, Taiwan, and Hong Kong, collectively accounting for approximately $6.87 billion FDI in the first seven months of 2025, which forms a significant proportion of the total investment.
2. For future business expansion, investors may consider the promising opportunities in sectors beyond manufacturing and real estate, such as the high-tech sector, as demonstrated by the nearly $6.2 billion investment in Ho Chi Minh City alone for this specific sector during the same period.

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