Foreign investors double down on Vietnam as confidence grows

This renewed confidence has led to a surge in investment commitments, positioning Vietnam as a key destination for global capital flows.

Tuesday, July 08, 2025 17:45

Workers produce shoe materials at a foreign-invested company in Binh Duong (now part of Ho Chi Minh City). (Photo: VNA)

Hanoi (VNA) – Foreign direct investment (FDI) in Vietnam continues to gain momentum as international investors reaffirm their trust in the country’s business environment, not only by initiating new projects but also by significantly expandin🅺g existing ones.

This renewed confidence has led to a surge in investment commitments, positioning Vietnam as a key destination for global capital flows. During the first half of 2025, the total registered FDI exceeded 21.51 billion USD, up 32.6% year-over-year, according to the Ministry of Finance (MoF). This includes 9.3 billion USD in new investments, down 9.6%; 8.95 billion USD in additional capital for existing projects, a 2.2-fold increase; and 3.28 billion USD through capital contributions and share purchases, up 73.6%. The ministry also reported that the disbursed FDI in H1 reached 11.72 billion USD, up 8.1% from a year earlier and the highest H1 figure in five years, highlighting Vietnam’s improved project execution and operational efficiency.

Major projects signal long-term commitment

Vietnam has attracted a series of large-scale and high-profile projects. Sweden’s SYRE committed 1 billion USD to develop the country’s first global hub for circular textiles, aligned with US and EU sustainability standards. The Trump Organisation also announced a 1.5 billion USD project in Hung Yen province. Major expansions include the Yen So Park project (an additional 1.12 billion USD) and the South Thang Long urban development (780 million USD). Meanwhile, LEGO inaugurated a 1.3 billion USD factory in Binh Duong (now part of Ho Chi Minh City) in April this year. These investments have been critical in driving Vietnam’s overall FDI growth and demonstrate long-term investor confidence in the country’s economic prospects. Despite the positive outlook, Finance Minister Nguyen Van Thang emphasised the need to attract more strategic investors with high-tech and value-chain-driving projects. Vietnam must focus on projects that shape new growth drivers and ecosystems if it aims to reach GDP growth of at least 8% this year and double-digit expansion in the following years, he said. To support this goal, the government is intensifying efforts to improve the investment environment and access large enterprises with high and source technologies.

Chairman of EuroCham Vietnam Bruno Jaspaert called for more than just administrative reform, noting it’s necessary to develop a transparent and predictable legal framework and coordinated support among government agencies. Lawyer Nguyen Hong Chung, Chairman of DVL Ventures and Vice President of the Vietnam Industrial Parks Finance Association (VIPFA), suggested a national digital platform supporting foreign investors that integrates land use planning, logistics, policies, and expert advisory services.

Global risks, local reforms

Two key developments may affect future investment flows – the US tariff policy and Vietnam’s recent administrative unit restructuring, said the MoF's Foreign Investment Agency (FIA). The US reciprocal tariff policy could raise concerns among long-term investors. This may be one of the reasons why some foreign investors are more cautious in the disbursement process, especially for large-scale and long-term projects, the FIA admitted. However, positive news came after a phone call between Party General Secretary To Lam and US President Donald Trump.

VinaCapital believes that as long as tariffs on Vietnamese goods are not 10% higher than those on other nations', Vietnam will retain strong FDI inflows. On the domestic front, the recent reorganisation of administrative units is viewed by the FIA as a crucial reform that could boost investor confidence and ease doing business in the long term./.

VNA

#FDI #investors #capital flows #investment environment #H1

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