In addition to introducing new mechanisms and policies to attract investors in key sectors, Vietnam is also implementing a range of supportive measures. These include developing land funds, industrial park infrastructure, enhancing human resources and the labor market, and improving energy infrastructure, as well as supporting industries.
Vietnam has successfully attracted large volumes of capital through both the capital market and foreign direct investment in recent years, significantly contributing to its economic growth.
The year 2024 was a landmark for the economy and the capital market, with a total capital mobilization of nearly 930 trillion VND. This amount was 1.3 times higher than in 2023 and equated to 25% of total social investment. The stock market capitalization reached 62.5% of GDP, while the bond market’s outstanding debt stood at 31.5% of GDP. Foreign investors played a significant role, opening nearly 48,000 trading accounts and reaching a total transaction value of almost 1.1 quadrillion VND. Foreign institutional investors made up 20.7% of all institutional investors in the market.
The year also witnessed impressive growth in total foreign direct investment, recording the highest increase ever. These achievements positively impacted economic growth, with Vietnam’s GDP reaching 7.09% in 2024, propelling the country’s economic scale to 476.3 billion USD and ranking 33rd globally.
However, despite these successes, the total asset value of securities investment funds remains modest compared to its potential. It accounts for only 6.5% of GDP, while countries like Thailand and Malaysia boast figures of 21% and 52%, respectively.
Administrative procedures, taxation issues, customs, and foreign exchange challenges continue to pose obstacles to direct investment activities.
According to the General Statistics Office and the Ministry of Finance, foreign direct investment (FDI) was a standout feature of Vietnam’s economic performance in the first quarter of 2025.
Total registered FDI in Vietnam during this period reached 10.98 billion USD, reflecting a notable 34.7% increase compared to the same quarter in 2024. This included 850 new FDI projects, with a total registered capital of 4.33 billion USD. While the number of projects increased by 11.5%, there was a 31.5% decrease in registered capital from the previous year.
The processing and manufacturing industry was the primary attraction for new FDI projects, with registered capital reaching 2.62 billion USD and accounting for 60.5% of total newly registered capital. The real estate business followed closely with 1.13 billion USD, or 26.1%, while the remaining sectors accumulated 581.5 million USD, equivalent to 13.4%.
Singapore led the way among the 53 countries and territories with newly licensed investment projects in Vietnam during this quarter, investing 1.32 billion USD. China, Japan, and Hong Kong (China) were also significant investors, contributing 1.23 billion USD, 341.8 million USD, and 310.2 million USD, respectively.
Additionally, in the first quarter of 2025, 401 previously licensed projects registered capital adjustments, resulting in an additional 5.16 billion USD in FDI, a substantial increase from the same period in 2024.
Considering both newly registered and adjusted capital, the processing and manufacturing industry attracted a total of 6.3 billion USD in FDI, accounting for 66.5% of new and additional capital.
In the first quarter of 2025, the real estate business secured 2.24 billion USD in new and additional FDI, representing 23.6% of total FDI investment in Vietnam. Meanwhile, other sectors accounted for 943 million USD, or 9.9%.
To address bottlenecks and maximize resources for national development, Vietnam is committed to streamlining and improving the efficiency of its administrative apparatus. This includes mobilizing all domestic and foreign resources, particularly investment capital through investment funds and foreign direct investment.
The first quarter of 2025 also witnessed 810 instances of foreign investors registering to contribute capital or purchase shares in Vietnamese enterprises, with a total capital contribution value of 1.49 billion USD, reflecting an impressive 83.7% increase from the previous year.
The processing and manufacturing industry continued to dominate in terms of capital contribution and share purchases by foreign investors, accounting for 32.7% of total capital contributions. Professional, scientific, and technological activities followed closely with 22.7%, while the remaining sectors contributed 44.6%.
According to the General Statistics Office, the first quarter of 2025 saw a strong breakthrough in realized FDI, estimated at 4.96 billion USD. This amount reflects a 7.2% increase over the same period in 2024 and is the highest realized FDI in the first quarter of the past five years. The processing and manufacturing industry accounted for a significant portion, totaling 4.05 billion USD or 81.7% of the total realized FDI.
The Ministry of Finance emphasizes that Vietnam is committed to removing bottlenecks and unleashing all development resources. This includes streamlining and improving the efficiency of the administrative system and mobilizing resources from investment funds and foreign direct investment.
Unlocking Con Dao’s Potential: PM’s Vision for a World-Class Destination in Ba Ria-Vung Tau
Prime Minister Pham Minh Chinh has set an ambitious vision for the southern province of Ba Ria-Vung Tau, envisioning its transformation into a world-class tourist destination. With a focus on sustainability and aesthetics, the province is tasked with creating a ‘bright, green, and clean’ future for Con Dao Island, ensuring it becomes an iconic and beautiful location for visitors from across the globe.
Pride of a Nation: Vietnamese Unity Celebrated in Style
On April 30, Nikkei Asia published an insightful article capturing the vibrant celebrations of the 50th anniversary of the liberation of the South and national reunification in Ho Chi Minh City. The piece vividly portrayed the pride and patriotism of the Vietnamese people as they commemorated this significant milestone in their country’s history.
Streamlining the State Apparatus: Unleashing the Potential for Development
Vietnam is set to undergo a significant transformation in its administrative structure, with a bold move to reduce the number of provincial-level units by half and an impressive 60-70% reduction in commune-level units. This reorganization aims to create a more streamlined, robust, and efficient state management apparatus, empowering local areas with greater developmental opportunities and a more dynamic future.
The Tech Titans Flock to Ho Chi Minh City: Unveiling the FDI Resurgence
Foreign direct investment (FDI) in Ho Chi Minh City is on the rise again, with a wave of new investments from prominent high-tech companies. The southern hub has witnessed a rebound in FDI inflows, attributed to its enhanced investment climate, which has attracted the attention of major players in the tech industry. This resurgence signifies a promising future for the city, as it cements its position as a desirable destination for foreign investments in the high-tech sector.
