Minh-Ngoc Nguyen
Research Expert covering Vietnam
Foreign direct investment (FDI) into Vietnam - statistics & facts
Vietnam is the third-largest destination for foreign direct investment (FDI) in Southeast Asia, driven by its strategic location, competitive labor costs, and rapidly growing consumer market. In 2023, the country attracted approximately 39 billion U.S. dollars in FDI, with the manufacturing sector receiving the largest share of these investments. Despite global uncertainties, Vietnam continues to appeal to investors, particularly companies seeking to diversify supply chains.
Vietnam’s two largest cities, Ho Chi Minh City and Ha Noi, have historically received most of the foreign investment due to their status as economic hubs. However, the emergence of second-tier cities and provinces such as Quang Ninh, Hai Phong, and Binh Duong as new FDI hotspots reflected a significant shift. These regions have developed growing networks of industrial parks and economic zones tailored to attract FDI projects. Notable examples include the LG factory complex in Hai Phong and the LEGO manufacturing facility in Binh Duong. This shift highlights Vietnam's efforts to decentralize investment and create balanced regional development, leveraging infrastructure upgrades and investor-friendly policies in these areas.
Looking ahead, Vietnam’s FDI prospects remain bright. The government’s ongoing infrastructure improvements, digital transformation initiatives, and focus on green energy are expected to attract further investments. Furthermore, its participation in free trade agreements and continued efforts to enhance its regulatory environment will solidify its standing as a highly regarded investment destination in the region.
Asian investors leading the way
Situated at the eastern end of mainland Southeast Asia and bordering China, Vietnam presents a compelling alternative for supply chain relocation and diversification. Its geographical advantage, coupled with extensive trade networks, has allowed it to attract FDI from around the world, with Asia-Pacific investors taking the lead. Singapore was the largest investor in Vietnam in 2023, followed by China, Hong Kong, and Japan. The strong presence of Singaporean investors—represented by over 3,000 companies operating in Vietnam as of 2024—highlights the depth of economic ties between the two nations. These investments span various industries, including manufacturing, real estate, and energy.Vietnam’s two largest cities, Ho Chi Minh City and Ha Noi, have historically received most of the foreign investment due to their status as economic hubs. However, the emergence of second-tier cities and provinces such as Quang Ninh, Hai Phong, and Binh Duong as new FDI hotspots reflected a significant shift. These regions have developed growing networks of industrial parks and economic zones tailored to attract FDI projects. Notable examples include the LG factory complex in Hai Phong and the LEGO manufacturing facility in Binh Duong. This shift highlights Vietnam's efforts to decentralize investment and create balanced regional development, leveraging infrastructure upgrades and investor-friendly policies in these areas.
FDI enterprises and investment outlook in Vietnam
FDI enterprises, which refers to companies with investments from foreign entities or persons, regardless of the capital contribution ratio, play a critical role in shaping Vietnam’s economy, significantly contributing to exports, employment, and technological advancement. By 2022, more than 22,900 FDI enterprises were operational across the country. These enterprises accounted for the majority of export revenues in key sectors such as textiles, garments, footwear, electronics, and machinery. In addition to their direct contributions, they have reinforced Vietnam’s reputation as a solid manufacturing hub in global supply chains. Their presence has also accelerated the growth of domestic industries by fostering competition, building partnerships, and facilitating technology transfers.Looking ahead, Vietnam’s FDI prospects remain bright. The government’s ongoing infrastructure improvements, digital transformation initiatives, and focus on green energy are expected to attract further investments. Furthermore, its participation in free trade agreements and continued efforts to enhance its regulatory environment will solidify its standing as a highly regarded investment destination in the region.
