FDI jumps 32.6 per cent in first half

FDI jumps 32.6 per cent in first half

Vietnam is emerging as an increasingly attractive destination for global investors, with foreign direct investment (FDI) surging on renewed confidence and strong economic fundamentals.

A Piaggo factory in Vinh Phuc province

FDI in Vietnam reached $21.5 billion in the first half of 2025, up 32.6 per cent on-year, reflecting growing confidence among international investors. According to the Ministry of Finance’s Foreign Investment Agency (FIA), nearly 2,000 new projects received investment registration certificates, a 21.7 per cent increase, although total registered capital dipped slightly by 9.6 per cent to just over $9.3 billion.

The adjusted capital for 826 ongoing projects climbed to $8.95 billion, an almost 2.2-fold on-year increase. There were also just over 1,700 capital contributions and share purchases valued at almost $3.28 billion, an increase of 73.6 per cent on-year.

FDI disbursement was estimated at $11.72 billion in the first half, marking an 8.1 per cent increase on-year. However, newly registered FDI declined by 9.6 per cent, largely due to a high base effect from the same period last year, when a surge in large-scale projects, each exceeding $100 million in registered capital, drove figures upward.

In the first half of 2024, there were 18 newly licensed projects exceeding $100 million in value, with total registered capital of $5.12 billion, accounting for 32 per cent of total FDI. By contrast, the same period this year saw only 15 such projects, with total capital of $3.2 billion, making up just 15.1 per cent of overall foreign investment.

However, both adjusted capital and capital contributions via share purchases saw strong on-year growth, rising 2.2 times and 73.6 per cent, respectively. The number of transactions also increased. June recorded the highest number of newly registered projects, capital adjustments, and share purchase deals in the first half of the year.

"This confirms the growing confidence of the foreign business community in Vietnam. Investors not only continue to choose Vietnam as a new destination, but are also willing to expand the scale of existing projects." said an FIA representative.

Foreign investors poured capital into 18 of 21 economic sectors in the first half, led by manufacturing and processing with nearly $12 billion, accounting for 55.6 per cent of total FDI and marking a 3.9 per cent increase on-year.

Real estate followed with $5.17 billion, capturing 24 per cent of the total and doubling over the same period last year. This was followed by professional activities and science and technology ($1.18 billion), and water supply and waste treatment ($903 million).

Among 92 countries and territories investing in Vietnam in the first half, Singapore was the largest, with nearly $4.6 billion, or 21.4 per cent of the total, but down by almost a quarter on-year. South Korea ranked second with more than $3 billion, accounting for 14.3 per cent and doubling on-year. It was followed by China with $2.55 billion, Japan with $2.15 billion, and Malaysia with $1.59 billion.

Of these, Malaysia and Sweden reported a remarkable climb. Malaysia rose 20 places thanks to its part in Hanoi’s Yen So Park, with additional registered capital of over $1.12 billion in May. Sweden jumped 59 places thanks to a new project in June related to polyester fabric recycling production, with a total investment of $1 billion.

54 cities and provinces welcomed FDI inflows in the first half. Hanoi took the lead with $3.66 billion, equivalent to 17 per cent of the total and a 2.8-fold increase. It was followed by Bac Ninh province($3.15 billion), Ho Chi Minh City ($2.7 billion), Dong Nai ($1.63 billion), former Ha Nam province ($1.2 billion), and former Ba Ria-Vung Tau province ($1.08 billion).

VIR