Vietnam’s 2025 FDI disbursement hits 5-year high

Vietnam recorded $27.62 billion in implemented FDI capital for 2025, up 9% year-on-year and marking the highest level in five years.

Of this, the manufacturing and processing sector received $22.88 billion, accounting for 82.8% of the total, followed by real estate with $1.93 billion (7%), the General Statistics Office (GSO), under the Ministry of Finance, reported.

The manufacturing and processing sector attracted large-scale manufacturing projects, linked to exports and global supply chains.

The FDI disbursements in 2024, 2023, 2022 and 2021 were $25.35 billion, $23.18 billion, $22.4 billion, and $19.74 billion, respectively.

Registered FDI capital reached $38.42 billion in 2025, up 0.5% 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 $38.42 billion in registered FDI capital, $17.32 billion was newly-registered for 4,054 new projects, down 12.2% and up 20.1% year-on-year, respectively.

The manufacturing and processing sector remained the top recipient of newly-registered capital, recording $9.8 billion, or 56.5% of the total. The real estate sector followed with $3.67 billion.

Among 90 countries and territories with newly licensed projects in Vietnam, Singapore was the largest investor with $4.84 billion, accounting for 27.9%, followed by mainland China ($3.64 billion, 21%), Hong Kong ($1.73 billion, 10%), Japan ($1.62 billion, 9.4%), Sweden ($1 billion, 5.8%), Taiwan ($965.8 million), and South Korea ($895.9 million).

About $14.07 billion (up 0.8% year-on-year) was additional capital for 1,404 operating projects in the year.

Foreign investors also made 3,587 capital contributions/share purchases worth $7.03 billion in 2025, up 54.8% from a year earlier.

Capital contributions/share purchases in the manufacturing and processing sector recorded $2.43 billion in value, making up the largest portion of 34.6%.

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 contributed to making Vietnam a strategic alternative destination thanks to its favorable geographical location, stable political environment, and increasingly improved production capacity, Mai added.

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

Campbell observed 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 predicted that 2026 would 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, he added.

Vietnam’s economy grew 8.02% in 2025, its second-fastest pace in the past 15 years, driven mainly by services and industrial production, official data shows.

The economic expansion was second only to 2022’s 8.12% over the 2011-2025 period, the General Statistics Office (GSO), under the Ministry of Finance, reported on Monday.

The figure for Q4 was 8.46% year-on-year.