FDI situation in the first quarter of 2025 – Singapore leads in new registered capital

In the first quarter of 2025, FDI attraction in Vietnam ranked among the top 15 developing countries attracting the largest FDI worldwide.
Viet Nam

26May2025

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B&Company is the first Japanese company specializing in market research and investment consulting in Vietnam since 2008.

In this section “Vietnam Briefing”, young researchers of B&Company will provide timely information of Vietnam’s industrial trends, consumer trends, and social movements.

This article is written in English and automatic translation is used for other language versions. Please refer to the English version for accurate content. Although we strive to ensure the accuracy of the original information, please check separately for each information. Interpretations and future prospects are the personal opinions of each researcher.

In the first quarter of 2025, foreign direct investment (FDI) attraction in Vietnam reached impressive growth, ranking among the top 15 developing countries attracting the largest FDI worldwide. This article highlights the main statistics in Vietnam’s FDI landscape and the investment opportunities related to high-tech sectors.

Key FDI statistics

As of March 31, 2025, the total FDI in Vietnam reached 10.9 billion USD, an impressive growth of 34.7% compared to the same period last year. Regarding the new investment sector, Singapore led with a capital of 1.32 billion USD, accounting for 30.5%, followed by China with 1.23 billion USD, accounting for 28.5%[1]. Notably, Korea, although ranked second in total investment capital in 2024, dropped out of the top 5 for new investment capital in the first quarter of 2025.

FDI new investment capital into Vietnam by countries (Q1/2025)  (%)

(100% = 4.3 billion USD)
FDI new investment capital into Vietnam by countries (Q1/2025) 

Source: VnEconomy

Ms. Phi Thi Phuong Nga, Head of the Industrial and Construction Statistics Department, General Statistics Office, Ministry of Finance, stated the total registered FDI in Vietnam rose by 34.7%, demonstrating that Vietnam remains an attractive destination for foreign investors, particularly those already engaged in business and production within the country[2].

Specifically, adjusted registered capital accounted for 47% of total FDI capital in the first quarter of 2025, five times higher than the same period last year. Meanwhile, the number of new projects increased by 11.5% but decreased by 31.5% in registered capital compared to the same period in 2024. The form of capital contribution and share purchase by foreign investors also grew strongly, with a total value of around 1.5 billion USD, up 83.7% compared to the same period last year[3].

FDI investment capital into Vietnam by types (Q1/2025)

Unit: Billion USD
FDI investment capital into Vietnam by types (Q1/2025)

Source: VnEconomy

The processing and manufacturing industry is the sector that attracted the largest FDI investment in the first quarter of 2025, accounting for 62.4% of total FDI capital. The real estate industry ranks second in new and adjusted registered capital at 26.1% and 21.5%, while professional, scientific, and technological activities hold second place within the capital contributions/share purchases form at 22.7%[4]

In the first quarter, Bac Ninh continued to lead the country in attracting FDI with a value of nearly 2 billion USD, accounting for nearly 20% of the country’s total newly registered capital, followed by Ho Chi Minh City and Hanoi with a very small difference of only 10 million USD.
Bac Ninh not only increased strongly in the number of projects and investment capital but also saw a surge in investment waves from major Asian countries such as Japan and South Korea in the software industry and semiconductor sectors. Especially, Ha Nam, although rarely appearing in the top 10 localities attracting FDI from foreign countries, unexpectedly ranked 6th this quarter. Ha Nam attracted 652 million USD in FDI, a sevenfold increase compared to the same period last year[5].

Top 10 provinces with the highest total FDI capital (Q1/2025)

Unit: Million USD
Top 10 provinces with the highest total FDI capital (Q1/2025)

Source: Foreign Investment Agency

Ms. Phi Thi Phuong Nga commented that the provinces and cities that attracted good investment share common characteristics: good infrastructure, strengthened investment promotion efforts, and many efforts in administrative procedure reform[6].

Investment trend toward the high-tech industry

A notable trend in the current investment picture is the strong increase of FDI flows into the high-tech industry sector. Some notable FDI projects in the first quarter of 2025 include Samsung Display’s $1.2 billion capital increase in Yen Phong Industrial Park (Bac Ninh) and a $812 million investment project in the VSIP Industrial Park (Binh Duong)[7].

The cooperation agreement between the Government of Vietnam and NVIDIA represents a significant milestone, opening opportunities for Vietnam to emerge as a leading AI research and development hub in Asia[8]. Simultaneously, Vietnam is solidifying its key position in the global semiconductor supply chain, drawing substantial investments from major corporations like Intel, Samsung, and Amkor.

The surge in investment in high-tech projects and R&D centers is also fueling demand for infrastructure and manufacturing facilities, driving growth in the industrial real estate market. Between 2024 and 2027, Vietnam is projected to offer approximately 15,200 hectares of industrial land and over 6 million square meters of warehouse and factory space. To capitalize on the strong FDI inflow, leading industrial real estate developers are competing to expand land reserves and develop green industrial parks and smart industrial zones integrated with ecological urban areas. As 2025 begins, the industrial real estate sector is showing promising prospects, supported by favorable policies and market conditions[9].

Currently, Vietnam is making very specific moves to be ready to attract projects from investors. Basic conditions like land, energy, and skilled labor are always available. Vietnam aims to train 50,000 engineers and high-quality workers in high-tech and semiconductors and actively joins supply and production chains to boost its global standing. One notable case can be mentioned is Hanoi’s special mechanisms to attract investors. For example, the city applies mechanisms for land use fee exemption and reduction of various taxes related to fields of interest such as semiconductor chip production, chip production integrated with AI technology, clean agriculture, and projects to improve the environment[10].

Conclusion

Vietnam’s strong FDI inflows in early 2025 reflect its appeal as a destination for investors, especially in manufacturing and high-tech industries. With ongoing support from policies and infrastructure, Vietnam is set to continue attracting foreign investment and boosting its economic growth.


[1] VnEconomy, Registered FDI capital in Vietnam in the first quarter of 2025 reached nearly 11 billion USD, up 34.7%<Access>

[2] Nhan Dan News, In the first quarter of 2025, the investment sector will grow positively. <Access>

[3] VnEconomy, Registered FDI capital in Vietnam in the first quarter of 2025 reached nearly 11 billion USD, up 34.7%<Access>

[4] VnEconomy, Registered FDI capital in Vietnam in the first quarter of 2025 reached nearly 11 billion USD, up 34.7%<Access>

[5] Doanh nhan Viet Nam, Top 10 localities attracting FDI in the first quarter of 2025: Bac Ninh leads, Hanoi and Ho Chi Minh City ‘follow closely’ <Access>

[6] Nhan Dan News, In the first quarter of 2025, the investment sector will grow positively. <Access>

[7] Bao Dau Tu, Attracting foreign investment in 2025: Welcoming the big wave <Access>

[8] CafeF, The “wave” of investment in high-tech projects creates growth momentum for the real estate segment, considered the “star of hope” of the real estate market. <Access>

[9] VOV, Attracting FDI creates a “springboard” for Vietnam to become a high-tech factory <Access>

[10] VOV, Attracting FDI creates a “springboard” for Vietnam to become a high-tech factory <Access>

 

 

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