FDI In Early 2026 – What Is Driving Disbursed Capital Flows Into Vietnam?

This article aims to provide investors with an overview of FDI trends in Vietnam, with a particular focus on realized capital (disbursed FDI)—a key indicator reflecting investor confidence and the actual implementation of projects.

The analysis is based on data from the Foreign Investment Agency, along with macroeconomic reports from the World Bank and UNCTAD, incorporating trends extending into 2025–2026.

1. FDI Landscape in 2025: Disbursement Reaches a Record High

According to the Ministry of Finance, disbursed FDI in 2025 reached approximately USD 27.62 billion, marking the highest level in recent years.

This development highlights a significant shift: Vietnam is not only attracting FDI commitments, but is increasingly converting registered capital into actual disbursements.

In practice, a number of global corporations have expanded their presence in Vietnam, particularly in manufacturing and technology sectors, including Foxconn, Amkor Technology, Qualcomm, and LEGO Group.

These projects not only contribute significant capital inflows but also: Enhance Vietnam’s position in global supply chains; and Accelerate the shift toward higher value-added industries.

2. Key Drivers of FDI Disbursement

(1) Global Supply Chain Restructuring

The ongoing diversification of manufacturing and reduced reliance on single markets continue to reshape global FDI flows. According to UNCTAD, “China+1” and “friendshoring” strategies are driving multinational corporations to expand their footprint in Southeast Asia, with Vietnam emerging as a key destination.

With advantages in geographic location, an established manufacturing base, and a stable business environment, Vietnam is increasingly positioned as an alternative or complementary production hub.

👉 Implication for investors: Opportunities arise in manufacturing, technology, and industrial real estate, particularly in northern industrial hubs.

(2) Improved Legal Framework and Investment Policies

Vietnam has continuously enhanced its legal framework to facilitate foreign investment, notably through: Law on Investment 2025, Land Law 2024…

In addition, targeted incentives are available for: High-tech projects; and Research and development (R&D) activities

These reforms help reduce regulatory barriers and shorten the timeline from licensing to project implementation

👉 Implication for investors:

Project structuring should be carefully designed from the outset to maximize incentives and accelerate time-to-market (e.g., locating in high-tech parks).

(3) Stable Macroeconomic Fundamentals

During the period 2023–2025, Vietnam will strongly attract FDI into the electronics, semiconductor, high-tech, and supporting industries. In 2025–2026, these projects will enter the implementation phase (construction, machinery import, operation), thereby boosting and stabilizing disbursed capital.

According to assessments by the World Bank and IMF, Vietnam continues to maintain strong growth relative to the region.

Key supporting factors include:-

• A large and growing domestic market;
• A young and increasingly skilled workforce; and
• The significant role of the FDI sector in exports

This environment encourages existing investors to expand their operations.

👉 Implication for investors:

Vietnam is well-suited for medium- to long-term investment strategies, particularly in manufacturing, logistics, and consumer-driven sectors.

(4) Extensive Network of Free Trade Agreements (FTAs)

Vietnam is among the most open economies in the region, with a wide network of FTAs, including: EVFTA, CPTPP, RCEP…

These agreements reduce trade barriers, expand export markets, and enhance Vietnam’s attractiveness for manufacturing investments.

👉 Implication for investors:

Vietnam can serve as a strategic production base to access major markets with preferential tariff treatment, including in sectors such as renewable energy and export-oriented manufacturing.

(5) Shift Toward Higher-Quality FDI

FDI inflows are increasingly shifting toward higher value-added sectors, including: High technology (e.g., semiconductors, AI); Renewable energy; and Advanced manufacturing

This trend aligns with Vietnam’s strategy of selective investment attraction and its long-term sustainable development goals.

👉 Implication for investors:

Projects with strong technological content and ESG compliance are more likely to benefit from policy support and resource allocation.

3. Recommendations for Investors

From both legal and strategic perspectives, investors should consider:

Prioritizing projects with rapid implementation capacity by selecting locations with ready infrastructure

Focusing on incentivized sectors, particularly high-tech, advanced manufacturing, and clean energy

Aligning location strategy with industry focus:

• Northern Vietnam: manufacturing and technology
• Southern Vietnam: logistics and consumption-driven sectors
• Central Vietnam: energy and land availability

Establishing partnerships with local counterparts to mitigate legal and operational risks

Investing in compliance and ESG frameworks from the outset, especially in light of increasing standards under FTAs such as EVFTA and CPTPP

 ✅ Conclusion

The strong growth in FDI disbursement during 2025 and early 2026 reflects a clear trend:

Vietnam is evolving from an “FDI-attracting destination” into a market capable of effectively implementing and absorbing investment capital.

In this context, competitive advantages are no longer defined solely by cost, but increasingly by:

• Legal transparency;
• Execution capability; and
• Compliance with international standards

For investors, success in Vietnam will depend on long-term strategic positioning, sector selection, and a clear understanding of the legal and regulatory environment from the outset.