Vietnam’s 10-month FDI disbursement hits 5-year high

Vietnam recorded $21.3 billion in implemented foreign direct investment (FDI) capital in the first 10 months of the year, up 8.8% year-on-year and marking the highest level in five years.

Meanwhile, registered capital reached $31.52 billion in the period, up 15.6% from a year earlier, the General Statistics Office reported.

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

Of the $31.52 billion in registered FDI capital, $14.07 billion was newly-registered for 3,321 new projects, up 21.1% and down 7.6% year-on-year, respectively.

About $12.11 billion (up 45% year-on-year) was additional capital for 1,206 operating projects. Foreign investors also made 2,918 capital contributions/share purchases worth $5.34 billion from January-October, up 45.1% from a year earlier.

The manufacturing and processing sector remained the top recipient of newly-registered and expanded FDI capital, recording $16.37 billion, or 62.5% of the total. The real estate sector followed with $5.32 billion (20.3%).

In terms of capital contributions/share purchases, manufacturing and processing recorded $1.86 billion (34.9% of the total).

Among 87 countries and territories with newly licensed projects in Vietnam, Singapore remained the largest investor with $3.76 billion (26.7%), followed by mainland China with $3.21 billion (22.8%), Hong Kong with $1.38 billion (9.8%), Japan with $1.17 billion (8.3%), Sweden with $1 billion (7.1%), Taiwan with $901.2 million (6.4%), and South Korea with $627 million (4.5%).

Commenting on the FDI trend, Prof. Nguyen Mai, former chairman of the Vietnam Association of Foreign-Invested Enterprises (VAFIE), said that global institutions such as the WB, IMF and ADB, along with many foreign investors and corporations, have reaffirmed Vietnam’s attractiveness and growth potential.

“This explains why FDI inflows into Vietnam continue to accelerate even as global investment declines,” he noted, adding that the country has benefited from the ongoing global supply chain shift, particularly in manufacturing, high technology, and renewable energy," he told The Investor.

Multinational corporations restructuring their supply chains to reduce dependence on China also contribute to making Vietnam a strategic alternative destination thanks to its favorable geographical location, stable political environment, and increasingly improved production capacity.

“Vietnam needs a comprehensive approach built on transparent institutions, modern infrastructure, and a high-quality workforce,” Mai said. “Each locality should develop its own FDI attraction strategy aligned with regional and sectoral development plans. The government should also leverage local advantages, promote regional linkages, and avoid unhealthy competition, encouraging complementarity among provinces,” he added.