FDI in first four months rises over 35 per cent on-year

FDI attraction into Vietnam during the first four months of 2026 continued to post positive results. Total newly registered capital, adjusted capital, and capital contributions through share purchases reached more than $18.7 billion, up 35.5 per cent on-year.

Of the total, 1,289 new projects were licensed, up 7.1 per cent on-year, with total registered capital exceeding $12.2 billion, up 119.6 per cent on-year. Meanwhile, there were 978 foreign-investor capital contribution and share purchase transactions, down 11.6 per cent on-year, but with total transaction value rising 79.2 per cent to more than $3.2 billion.

In April 2026 alone, total newly registered, adjusted, and contributed foreign investment capital reached more than $3.5 billion, down 61.5 per cent from March 2026. However, the number of newly registered projects increased by 35.6 on-month to 385 projects.

In addition, 71 projects registered for capital adjustments in April 2026, unchanged from March, with additional investment capital reaching $873 million, up 181.8 per cent from the previous month. Regarding capital contributions and share purchases, there were 275 transactions by foreign investors, up 30.3 per cent on-month, with total contributed capital valued at $610 million.

Several notable projects in April included Vietnam Artificial Graphite Anode Production by Posco Future M Co., Ltd, with the registered capital of more than $282 million in Thai Nguyen province. Meanwhile, BYD Vietnam Electronics Factory in Phu Tho province, invested by Hong Kong-based Chinese investors, increased its capital by $479.8 million, bringing total investment to $890.8 million.

The Foreign Investment Agency's (FIA) report said disbursed FDI in the first four months of the year, as of April 30, reached more than $7.4 billion, up 9.8 per cent on-year. This marked the highest level of realised FDI for the first four months in the past five years. Continued growth in realised capital is considered a positive signal, indicating that existing foreign-invested projects are still being implemented at a relatively steady pace.

This indicator carries substantial significance as it reflects investor confidence and the extent to which investment commitments are being materialised in Vietnam. At a time when international investment flows remain cautious, higher disbursement has contributed to supporting production, exports, employment, and economic growth.

The structure of FDI inflows during the first four months of 2026 also showed a clear divergence. Newly registered capital surged to more than $12.2 billion, up 119.6 per cent on-year, while the number of new projects increased 7.1 per cent. This suggests that fresh capital inflows into Vietnam are continuing, although the sharp rise in total value was influenced by several large-scale projects.

Capital contributions and share purchases declined in transaction volume but rose sharply in value, reflecting a trend in which investors are opting for larger or more strategically positioned deals. Meanwhile, adjusted capital fell in both the number of transactions and value, indicating that some existing foreign-invested enterprises remain cautious about short-term expansion plans.

FDI inflows in the first four months of 2026 also showed that investment remained highly concentrated by sector, partner, and location. The processing and manufacturing sector continued to lead, attracting more than $11 billion, accounting for around 58.8 per cent of total registered capital.

Electricity, gas, water supply, and air-conditioning production and distribution ranked second, reflecting continued strong demand for investment in energy and production infrastructure. In terms of investment partners, Singapore and South Korea continued to account for a large share of total capital.

By locality, Thai Nguyen and Nghe An province, and Ho Chi Minh City were the top destinations for FDI during the first four months of the year. Large-scale projects had a significant impact on overall results, while also highlighting the need to expand investment attraction capacity in other localities through improvements in infrastructure, land availability, personnel, energy supply, and investor support services.

A total of 75 countries and territories invested in Vietnam during the first four months of 2026. Among them, Singapore ranked first with total investment exceeding $7.4 billion, accounting for 39.9 per cent of total investment. South Korea came second with more than $4.8 billion, representing 25.7 per cent of total investment. They were followed by Indonesia, Hong Kong, and China, with investment values of $1.7 billion, $1.1 billion, and $1 billion, respectively.

According to the FIA, the FDI attraction results for the first four months of the year were positive, though uneven and not yet truly sustainable. On the positive side, Vietnam continued to draw in fresh capital inflows, realised capital increased, and foreign-invested enterprises maintained its major contribution to exports. Vietnam also continued to retain its attractiveness despite ongoing global uncertainty.

However, adjusted capital declined, the number of capital contributions and share purchase transactions fell, and investment attraction results remained heavily dependent on a handful of large-scale projects. This indicates that investor sentiment remains cautious and has not yet shifted fully toward broad-based investment expansion.