Vietnam’s foreign investment landscape is off to a promising start in 2025, as indicated by recent data from the Foreign Investment Agency under the Ministry of Planning and Investment (now the Ministry of Finance). Specifically, in January 2025, foreign investment registered in Vietnam surpassed US$4.33 billion, reflecting a notable year-on-year increase of 48.6 percent.
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| FDI disbursement in Vietnam reached US$25.35 billion in 2024, marking a 9.4 percent increase from the previous year. |
According to a report by the Foreign Investment Agency, foreign direct investment (FDI) disbursement in Vietnam touched US$25.35 billion in 2024, representing a healthy 9.4 percent uptick compared to 2023. This encouraging news comes despite a slight three-percent dip in registered FDI, which stood at US$38.23 billion. Nguyen Thi Huong, Director General of the General Statistics Office of Vietnam (now the National Statistics Office), highlighted that the 2024 FDI disbursement figure is the highest ever recorded.
Nguyen Thi Huong emphasized the significance of these numbers, stating, “When converted to Vietnamese currency, FDI disbursement in 2024 increased by more than 10 percent. These figures underscore the enduring attractiveness of Vietnam’s investment environment.”
January 2025 witnessed the first billion-dollar project of the year, with a US$1.2 billion capital increase for Samsung Display. The leadership of Bac Ninh province promptly granted the investment registration certificate for this project on the very first working day of the year.
Demonstrating its commitment to foreign investment, Bac Ninh Province also approved several other projects on the same day, totaling US$1.67 billion in registered capital.
The momentum continued into early February 2025, with Binh Duong Province awarding investment approvals and certificates to seven foreign-invested projects, collectively valued at nearly US$1 billion. Notably, two projects by VSIP, encompassing an industrial park infrastructure project and a new urban area development, accounted for over US$812 billion in investment.
A standout feature of January 2025 was the substantial surge in additional investment capital and investments made through capital contributions and stock purchases. Capital increases and capital contributions/stock purchases reached impressive figures of US$2.73 billion and US$322.9 million, respectively, reflecting increases of 509.6 percent and 70.4 percent compared to the same period last year. This influx effectively offset the 43.6 percent decrease in newly registered investment in January 2025, which amounted to US$1.29 billion, resulting in an overall increase of 48.6 percent in total registered foreign investment.
Striving for Continuous Improvement in the Investment Environment
While Vietnam presents abundant opportunities for FDI, Prof., Dr. Nguyen Mai, President of the Association of Foreign-Invested Enterprises, cautions that challenges remain. Some countries are implementing policies encouraging their corporations to reinvest domestically, while investment-receiving countries are offering competitive policies to attract foreign capital. Despite these external factors, Vietnam is committed to enhancing its investment and business environment to remain a desirable destination for foreign investors.
However, it is important to acknowledge that certain aspects of the investment climate still require improvement to meet the expectations of foreign investors fully. “Complex administrative procedures continue to hinder business and investment activities, and a streamlined support mechanism is needed to facilitate enterprises,” remarked Prof., Dr. Nguyen Mai. “Major foreign corporations investing in Vietnam require efficient processes and reduced implementation times.”
To achieve its FDI goals and maintain its competitiveness, Vietnam must prioritize key areas such as transport and energy infrastructure development, investments in workforce quality, and the swift reduction of unnecessary administrative procedures that burden businesses. By addressing these areas, Vietnam can create an even more attractive investment environment, characterized by simplicity, clarity, and accessibility. These measures will not only boost FDI attraction but also propel the nation towards its ambitious goal of becoming a modern industrialized country with a high-value economy by 2045.
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