Vietnam increasingly central to major FDI strategies

Vietnam increasingly central to major FDI strategies

Vietnam continues to sharpen its edge as a preferred destination for foreign investment across key sectors.

A government delegation led by Minister of Industry and Trade Nguyen Hong Dien held direct talks last week with four of America’s top global players – Excelerate Energy, Lockheed Martin, SpaceX, and Google - each representing a critical pillar of energy, aerospace, connectivity, and digital services.

With Power Development Plan VIII calling for 14 plants powered by liquefied natural gas (LNG), Minister Dien confirmed the country’s openness to private-sector participation backed by tax incentives and regulatory reforms. Excelerate Energy’s vice president Peter Haas responded with a tripartite proposal to infrastructure investment, supply stability, and a joint venture to position Vietnam as a regional LNG distribution hub.

The message is clear, as Vietnam wants to move beyond being a passive recipient of energy solutions. It aims to co-own critical infrastructure and become an energy node in ASEAN, Minister Dien said.

In parallel, Vietnam’s space ambitions are gaining altitude. Lockheed Martin is being courted not only as a technology partner but as a long-term contributor to Vietnam’s satellite launch programme and digital infrastructure development. SpaceX, for its part, announced plans to invest $1.5 billion in broadband connectivity, starting with 10–15 ground stations.

The Ministry of Industry and Trade has pledged to facilitate the integration of Google with local partners, signalling readiness to accommodate larger supply chain participation through logistics and tax support.

At the same time, a consortium involving Kinh Bac Urban Development Corporation and IDG Capital broke ground on a 990-hectare urban and tourism complex in the northern province of Hung Yen last week, with total investment of over $1.5 billion.

The investment story expands beyond connecting regional relationships. The visit of Thai Prime Minister Paetongtarn Shinawatra to Vietnam in May brought investment cooperation into sharper focus. Key Thai industrial developers WHA Group and Amata moved to expand their presence with new agreements in Hung Yen, Phu Tho, and Thanh Hoa provinces.

“This is not a race for presence, it’s a race for position,” said Somhatai Panichewa, CEO of Amata Vietnam. “We’re seeing growing investor appetite from global players looking for long-term industrial bases. Our job is to make Phu Tho a compelling choice.”

The trend reflects a broader reality that Vietnam remains one of the few emerging economies where infrastructure development is closely aligned with foreign investment inflows, and where industrial zones are strategic enablers of supply chain shifts.

A Q1 report from Savills Asia-Pacific points to Vietnam alongside India, Japan, and Malaysia as one of the few bright spots in a cautious regional landscape. Investor sentiment remains risk-sensitive, but Vietnam’s continued reforms and proactive diplomacy are helping bridge confidence gaps, it said.

Indeed, Vietnam’s recent outreach to major global corporations is being noted. At a meeting in the US, Meta’s director of Public Policy, Molly Montgomery, acknowledged Vietnam’s clear policy stance regarding US tariffs.

“For companies with large-scale production in Vietnam, the government’s proactive and coordinated approach to US trade matters is crucial,” she said, calling Vietnam “an increasingly central market” in its Asia strategy.

Yet experts agree that capturing new investment waves requires more than diplomatic charm. The latest Provincial Competitiveness Index report, covering last year, highlights both progress and pressure. While Vietnam ranks high in supply chain repositioning, bottlenecks remain in administrative procedures, legal consistency, and human capital.

According to the Foreign Investment Agency under the Ministry of Finance, Vietnam attracted $13.82 billion in newly registered, adjusted, and contributed foreign capital as of April 30 – a 40 per cent surge on-year.

While the number of newly licensed projects rose by 14.1 per cent to just over 1,200, total registered capital for these new entries dropped by 23.8 per cent on-year, reaching only $5.59 billion. This reflects a shift towards smaller-scale or more cautious project commitments in the early stages of market entry.

In terms of investor origins, Singapore led the pack among 60 countries and territories, pouring in $1.6 billion, accounting for 28.6 per cent of new foreign direct investment. China followed closely with $1.52 billion (27.1 per cent), while Japan ranked third at $573.2 million (10.3 per cent).

VIR