Vietnam's FDI soars, signaling strong investor confidence

Vietnam continues to be a highly attractive destination for international investors, with total registered foreign direct investment (FDI) as of June 30 increasing by a robust 32.6 percent compared to the same period last year.

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Most businesses still believe in Vietnam's long-term growth prospects

A significant driver of this growth is the adjusted registered capital, which surged by an impressive 2.2 times to reach US$8.95 billion. This substantial increase underscores the strong and growing confidence of the international business community operating within Vietnam's dynamic economy.

Further bolstering this positive outlook, realized FDI capital in the first six months of this year is estimated at $11.72 billion, marking an 8.1 percent increase over the same period last year. This achievement represents the highest realized FDI for the equivalent period in the past five years.

These figures are underscored by tangible successes on the ground. In early April 2025, Lego Group from Denmark inaugurated its $1.3 billion factory in Vietnam - Singapore Industrial Park III in Binh Duong (now part of Ho Chi Minh City). This facility, which began construction in November 2022, serves as a powerful testament to the confidence international investors place in Vietnam.

Vietnam continues to attract significant projects, including several billion-dollar investments. Notably, Swedish Syre Group is investing $1 billion in Binh Dinh (now Gia Lai Province), and the Trump Organization has a $1.5 billion project in Hung Yen. Susanna Campbell, President of Syre Group, stated that their $1 billion investment aims to establish Vietnam as the first global center for circular textiles, leveraging high technology to meet US and EU standards. These substantial commitments from leading global companies serve as compelling evidence of Vietnam's appeal to investors.

Hanoi has emerged as the leading locality for foreign direct investment (FDI) in the first half of 2025, attracting a significant $3.66 billion in registered capital. This impressive figure is largely attributed to substantial capital increases in key projects, including the Yen So Park project, which added $1.12 billion, and the Nam Thang Long new urban area development project, which saw an increase of $780 million.

Despite a brief period of uncertainty as the investment community closely monitored tariff negotiations initiated by President Donald Trump, capital flows into Vietnam continue to be robust. Experts from VinaCapital suggest that for foreign investors, the export taxes Vietnam might face may be less critical than the tax burdens of other competing countries in the region.

Plus, a second factor poised to positively influence Vietnam's investment appeal is the rearrangement of administrative units. A steady and effective implementation of this process, leading to a streamlined and efficient administrative apparatus, is expected to significantly bolster investor confidence. This administrative reorganization, coupled with a highly interconnected investment environment, promises to optimize logistics and overall production and business costs, making Vietnam an even more attractive destination for global capital.

To sustain this positive momentum and further enhance Vietnam's appeal, continued efforts are essential in creating and strengthening a transparent and open business environment. A crucial step in this endeavor is the digitization of the entire investment process. This would involve developing a comprehensive national digital platform that seamlessly integrates accurate information on planning, logistics costs, and land policies, streamlining everything from project registration and licensing to operation.

Equally vital is the cultivation of a highly skilled and dedicated civil service. By fostering a team of public servants who are both knowledgeable and committed, Vietnam can ensure an efficient and supportive environment for all investors.

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