Registered FDI capital in Vietnam hits $4.33 bln in Jan, S Korea leads with 13.4-fold increase

Registered foreign direct investment (FDI) in Vietnam reached $4.33 billion in the first month of 2025, up 48.6% year-on-year, while disbursed FDI capital hit $1.51 billion, up 2%.

South Korea led the pack in terms of registered capital with over $1.25 billion, accounting for more than 28.9% of the country's total and 13.4 times higher than the same period last year.

The manufacturing-processing sector received the biggest share of registered capital with $3.09 billion, up 99% year-on-year and accounting for 71.3% of the total, followed by real estate with nearly $1.09 billion, down 6.4%, the Foreign Investment Agency (FIA) reported on Wednesday.

At the FIA's calculations, registered capital comprises capital for newly-registered projects, additional capital for existing projects, and capital for stake acquisitions.

Of the total registered capital, about $1.29 billion (down 43.6% year-on-year) was pledged for 282 new projects. Nearly $2.73 billion, a six-fold increase, was additional capital for 137 existing projects. Capital contributions/stake acquisitions reached $322.9 million (up 70.4%) with 260 deals.

The manufacturing-processing sector ranked number one in terms of new projects (42.2%) and capital adjustments (63.5%), while the wholesale-retail sector placed first in terms of capital contributions/stake acquisitions (39.6%).

Fifty five countries and territories were investors in Vietnam in January. South Korea led the pack in terms of registered capital (more than $1.25 billion), accounting for more than 28.9% of the country's total and 13.4 times higher than the same period last year.

Singapore ranked second with more than $1.24 billion, or 28.7%, up 1.1%. Next were Japan, mainland China and Hong Kong.

Mainland China continued to rank first in terms of new projects (30.1%), while South Korea led in terms of capital adjustments (19%) and stake acquisittions (25.4%).

The biggest recipients of registered capital in Vietnam were Bac Ninh province with $1.39 billion (32.2%), a six-fold rise year-on-year; Dong Nai province with nearly $959 million, a 3.4-fold increase, and Hanoi with $716.4 million, up 1.9%.

HCMC held the first position in terms of new projects (35.5%), capital adjustments (19%), and capital contributions/stake acquisitions (64.2%).

According to the FIA, newly registered capital decreased by 43.6% because there were not many large projects in January compared to the same period last year.

In January 2025, there was only one project with investment capital of $101 million, while in January 2024, there were three projects worth over $100 million, totaling over $1.06 billion.

New investment decisions of foreign investors were also affected by the New Year and Lunar New Year holidays. However, additional capital and capital contributions/stake acquisitions still increased sharply, up 509.6% and 70.4% respectively, helping the total registered capital rise by 48.6%.

The FDI sector posted a trade surplus of $3.2 billion in January, including crude oil, offsetting the trade deficit of more than $1.97 billion of the domestic business sector and helping the country achieve a trade surplus of about $1.23 billion.

As of the end of January 2025, Vietnam had recorded 42,272 valid projects with total registered capital of $505.4 billion. The accumulated disbursed capital of FDI projects was estimated at more than $324 billion, equal to 64.1% of the total valid registered capital.

Registered FDI in Vietnam hit $38.23 billion in 2024, down 3% year-on-year, while disbursed FDI capital reached $25.35 billion, an all-time high.