Vietnam’s 11-month FDI disbursement highest in 5 years

Vietnam recorded $23.6 billion in implemented foreign direct investment (FDI) capital in the first 11 months of the year, up 8.9% year-on-year and marking a 5-year record high.

Of this, the manufacturing and processing sector reaped $19.56 billion, accounting for 82.9% of the total, followed by real estate with $1.67 billion (7.1%), the General Statistics Office (GSO) reported.

Meanwhile, registered capital reached $33.69 billion in the 11-month period, up 7.4% from a year earlier.

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

Of the $33.69 billion in registered FDI capital, $15.96 billion was newly-registered for 3,695 new projects, down 8.2% and up 21.7% year-on-year, respectively.

The manufacturing and processing sector remained the top recipient of newly-registered, recording $9.17 billion, or 57.5% of the total. The real estate sector followed with $3.14 billion (19.7%).

Among 88 countries and territories with newly licensed projects in Vietnam, Singapore remained the largest investor with $4.29 billion, accounting for 26.9%, followed by mainland China ($3.4 billion), Hong Kong ($1.66 billion), Japan ($1.56 billion), Sweden ($1 billion), Taiwan ($951.1 million), and South Korea ($659.6 million).

About $11.62 billion (up 17% year-on-year) was additional capital for 1,318 operating projects during Jan-Nov.

Foreign investors also made 3,225 capital contributions/share purchases worth $6.11 billion in the period, up 50.7% from a year earlier.

Capital contributions/share purchases in the manufacturing and processing sector recorded $2 billion in value, making up the largest portion of 32.7%.

Vietnam is entering a new phase of industrial growth, as macroeconomic indicators, FDI inflows, and infrastructure development all point to a shift from quantity-driven growth to scale and quality expansion, according to a report by Savills Vietnam.

According to John Campbell, director of industrial services at Savills Vietnam, the country’s industrial foundation, as it moves into 2026, is strengthening significantly.

The manufacturing and processing sector, individually, was responsible for 60% of newly registered capital in the first nine months of the year (and 57.5% in the first 11 months of the year), "reflecting a shift toward higher-value industries such as electronics, technology equipment, and semiconductors."

Campbell observes that the country is witnessing a shift in certain strategic sectors, including advanced electronics manufacturing, industrial equipment, and data centers, moving toward larger-scale operations.

He predicts that 2026 will be a pivotal year for Vietnam’s industrial market, as production prospects improve, the investment environment stabilizes, and connectivity, from ports and energy to digital infrastructure, is strengthened.

This transition shifts growth from being cost-driven to being based on system capacity, where infrastructure, energy, and operational data work together to support industries with higher standards.

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 in October.

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.