Industry Attracting The Most FDI In 2025

A report on the socio-economic situation in February and the first two months of 2025, released by the General Statistics Office and the Ministry of Finance on March 6th, indicated that total registered foreign direct investment (FDI) into Vietnam reached nearly USD 6.9 billion in the first two months, marking an impressive increase of 35.5% compared to the same period last year.

Specifically, newly registered FDI amounted to USD 2.19 billion across 516 licensed projects, representing a decrease of 48.4% in registered capital but a 10% increase in the number of projects. The manufacturing and processing industry continued to be a bright spot, attracting the largest amount of FDI with USD 1.45 billion, accounting for 66.1% of the total newly registered capital. This was followed by real estate business activities reaching USD 371.5 million, accounting for 16.9%; the remaining sectors reached USD 371.8 million, accounting for 17.0%.

Manufacturing And Processing Industry Leads

According to the General Statistics Office, estimated realized FDI in the first two months of 2025 reached USD 2.95 billion (up 5.4% year-on-year) and was the highest level in the past five years. The manufacturing and processing industry continued to dominate with USD 2.42 billion, accounting for 82.1% of the total realized FDI.

However, the growth rate of realized FDI was only higher than the same period in 2023 (the first two months of 2023 saw a decrease of 4.9%) over the past five years. The low increase in realized FDI (accounting for about 16-20% of total social investment) will pose a significant challenge to contributing to the growth target for the first quarter of this year.

Outbound Investment Records Breakthrough Growth

Regarding outbound investment, in the first two months of 2025, 30 new investment certificates were granted with a total capital contribution from the Vietnamese side of USD 233.6 million, 9.4 times higher than the same period last year; and there were 05 instances of capital adjustment with an increased adjusted capital of USD 5.4 million, 24.3 times higher.

Overall, Vietnam’s total outbound investment (new and adjusted capital) reached nearly USD 239 million, 9.5 times higher than the same period last year.

Among these, Laos was the leading recipient of investment from Vietnam with USD 139.7 million, accounting for 58.4% of the total investment; followed by the Philippines with USD 34.2 million (14.3%); Indonesia with USD 31.1 million (13%); the British Virgin Islands with USD 21.0 million (8.8%); and Cuba with USD 4.0 million (1.7%).

Comparison With Countries In The Region

In the Southeast Asian region, Vietnam is directly competing with countries such as Indonesia, Thailand, and Malaysia in attracting FDI. Indonesia recorded USD 7.1 billion in FDI during the same period, thanks to policies promoting investment in the technology and electric vehicle manufacturing sectors. Thailand and Malaysia also experienced stable growth in the manufacturing and services sectors.

According to international financial organizations, Vietnam has significant advantages in terms of competitive labor costs, a stable political environment, and free trade agreements (FTAs) with many major partners. This creates favorable conditions for attracting more foreign investors in the future.

With the strong growth trend of FDI inflows, especially in the manufacturing and processing sector, Vietnam continues to affirm itself as an attractive destination for foreign investors. However, to maximize this opportunity, it is necessary to have policies supporting businesses and improving the investment environment to promote the sustainable development of the economy.

Experts predict that in the near future, Vietnam needs to focus on improving labor quality, upgrading infrastructure, and simplifying administrative procedures to maintain its position as one of the leading investment destinations in the region.