In the first quarter of 2025, Vietnam has seen a remarkable surge in foreign direct investment (FDI), with total registered capital reaching nearly 10.98 billion USD, marking a significant increase of 34.7% compared to the same period last year. This growth is largely attributed to a robust performance in capital adjustments and foreign share purchases, indicating a renewed confidence among international investors.
Specifically, there were 401 projects registered for capital adjustment during the first three months, which represents a 44.8% increase year-on-year. The total additional investment capital from these adjustments reached approximately 5.16 billion USD, an impressive figure that is 5.1 times higher than the same period last year. Furthermore, foreign investors engaged in 810 transactions involving capital contributions and share purchases, which increased by 11.6% and totaled nearly 1.49 billion USD, reflecting an astonishing 83.7% rise compared to the first quarter of 2024.
While the newly registered capital saw a decline, reaching just over 4.33 billion USD (a drop of 31.5% compared to the previous year), the overall trend appears to be improving. The Foreign Investment Agency (FIA) noted that in March 2025, new investment capital surged by 66.5% compared to January and was 2.4 times higher than February. This uptick in new projects, which increased by 42.7% from January and nearly 18.4% from February, signals a potential turnaround in investor sentiment.
The first quarter of 2025 also saw foreign investments distributed across 18 out of the 21 national economic sectors. Leading the charge was the processing and manufacturing industry, which attracted over 6.79 billion USD—accounting for nearly 61.9% of total registered investment capital and reflecting a 26% increase from the previous year. Following closely was the real estate sector, which drew in more than 2.39 billion USD, representing 21.8% of total registered capital and a notable increase of 44.1% year-on-year.
In terms of investment sources, Singapore topped the list with over 3 billion USD, constituting 27.6% of total foreign investment in Vietnam. This figure marks a 3.8% increase compared to the same period last year. South Korea follows in second place with nearly 2.04 billion USD, which is 2.7 times higher than the previous year. Other significant investors include China, Japan, and Taiwan.
Geographically, the provinces attracting the most FDI in the first quarter included Bac Ninh, Ho Chi Minh City, and Hanoi. Bac Ninh led with nearly 1.9 billion USD, accounting for 17.3% of the country's total FDI, and saw a remarkable increase of 2.1 times compared to the same period last year. Ho Chi Minh City ranked second, attracting 1.43 billion USD and representing nearly 13% of total FDI, which is an increase of 58.3% from last year. Hanoi closely followed with 1.42 billion USD, making up 12.9% of the total and marking a 23.6% rise compared to the previous year.
Other provinces showing strong performances in attracting foreign investment included Dong Nai, Ba Ria-Vung Tau, and Ha Nam. The diverse sectors and geographical distribution of investments indicate a broadening base of foreign interest in Vietnam's economy.
The significant rise in foreign direct investment reflects a growing confidence among investors regarding Vietnam's economic stability and potential for growth. As the country continues to enhance its investment climate, it is poised to attract more international capital, further boosting its economic development and integration into the global economy.
With these positive trends, it appears that Vietnam is not only recovering from past economic challenges but is also positioning itself as a competitive destination for foreign investment in the Southeast Asian region. Investors are increasingly recognizing the opportunities available in Vietnam, which could lead to sustained growth in the coming years.
