Vietnam records solid FDI performance in January

Vietnam records solid FDI performance in January

Foreign direct investment into Vietnam remained positive in the first month of 2026, particularly disbursed capital. This is an encouraging signal, reflecting investor confidence in the country’s business environment and economic outlook.

Thai Nguyen province sees strong FDI inflows in January

According to the Ministry of Finance (MoF), FDI inflows in January 2026 continued to post solid growth compared with the same period last year.

Disbursed FDI in January reached $1.68 billion, up 11.26 per cent on-year from $1.51 billion in January 2025.

This indicates that foreign investors are continuing to implement and expand their production and business activities in Vietnam. “This is an encouraging signal, reflecting the foreign investment sector’s confidence in Vietnam’s business environment and economic prospects,” the MoF reported.

By contrast, total registered FDI declined sharply on-year, running counter to the strong increase in disbursed capital. Total registered FDI in January exceeded $2.57 billion, down 40.58 per cent on-year from more than $4.334 billion in January 2025.

Of this total, newly registered capital amounted to $1.489 billion, covering 349 projects, up 15.71 per cent in capital and 23.76 per cent in the number of projects. Additional capital reached $888.5 million on 91 projects, down 67.4 per cent on capital. And capital contributed through capital contribution and share acquisition totalled $198.3 million, down 38.57 per cent.

The MoF explained that this decline does not signal a weakening trend in foreign investment attraction, but is mainly attributable to a high comparison base in the same period last year, when additional capital adjustments for existing projects surged to an exceptionally high level.

Specifically, the fall in registered capital was largely driven by a sharp 67.4 per cent decrease in additional capital, from $2.725 billion in the first month of 2025 to $888.5 million. In January last year, several large-scale projects recorded unusually large capital increases.

In addition to the decline in additional capital, investment through capital contribution and share acquisition also fell by 38.57 per cent. By contrast, newly registered capital continued to grow positively in both the number of projects and capital size, indicating that new foreign investment flows are still entering Vietnam.

The MoF said that registered foreign investment in January 2026 continued to be poured primarily into manufacturing and processing. This was followed by real estate, information and communications, and wholesale and retail trade.

“This structure is consistent with long-standing trends, reaffirming Vietnam’s position as an attractive destination for manufacturing and processing projects amid global supply chain shifts,” the MoF reported.

By sector, manufacturing and processing remained the top recipient, with more than $1.964 billion, accounting for 76.28 per cent of total registered capital. Real estate ranked second with $249.6 million (9.69 per cent), followed by information and communications with $134.2 million (5.21 per cent), wholesale and retail trade with $124.2 million (4.82 per cent), and professional, scientific and technological activities with $56.7 million (2.2 per cent). The remaining sectors together accounted for around 1.8 per cent.

In terms of investment partners, Singapore led with $1.07 billion (41.54 per cent), followed by South Korea with $551 million (21.39 per cent), China with $385 million (14.95 per cent), Japan with $208.2 million (8.08 per cent), Hong Kong with $117.9 million (4.58 per cent), the US with $91.9 million (3.57 per cent), the Netherlands with $52.1 million (2.02 per cent), and Taiwan with $48.6 million (1.89 per cent).

Overall, traditional investment partners in the Asia-Pacific region continued to account for the dominant share, with the four largest investors (Singapore, South Korea, China, and Japan) together contributing around 86 per cent of total registered capital.

Several partners from Europe and North America, such as the US and the Netherlands, also maintained a notable presence, reflecting the continued diversification of foreign investment sources into Vietnam.

VIR