A production line of the RoK-invested Unipax Vi Thanh Co in Hau Giang province. (Photo: VNA)
Of the total, over USD 7.02 billion came from 1,549 newly licensed foreign-invested projects. While this reflected a 13.2 per cent drop in value, it marked a 14 per cent increase in the number of new projects.
Meanwhile, 672 capital-added projects contributed an additional USD 8.51 billion, up 28 per cent in volume and more than 3.4 times the value recorded during the same period last year.
Foreign investors also conducted 1,358 capital contribution and share purchase transactions, a 6.6 per cent rise year-on-year, with the total value soaring to over USD 2.85 billion—1.8 times that of the previous year.
Disbursed foreign investment maintained a positive trend, reaching approximately USD 8.9 billion, up 7.9 per cent compared to the same period in 2024.
During the five-month period, the manufacturing and processing sector remained dominant, attracting USD 10.39 billion, equivalent to 56.5 per cent of total registered capital and up 32 per cent year-on-year. The real estate sector ranked second with USD 4.99 billion, accounting for 27.1 per cent of the total and more than doubling the figure from the same period last year. Science and technology drew USD 1.02 billion, followed by wholesale and retail trade with more than USD 596.8 million.
Singapore led all investing countries and territories with over USD 4.38 billion, representing 23.8 per cent of total foreign investment and a 30.1 per cent increase year-on-year. The Republic of Korea followed with more than USD 2.93 billion—nearly 16 per cent of the total and 2.47 times higher than last year’s figure.
Foreign capital was distributed across 52 provinces and cities. Hanoi took the lead with more than USD 3.2 billion in registered investment, accounting for 17.6 per cent of the national total and nearly 2.8 times the amount recorded last year. Bac Ninh followed with USD 2.7 billion (14.8 per cent), while Ho Chi Minh City ranked third with USD 2.58 billion (14.1 per cent), both experiencing increases of over 2.5 times.
As of May 31, Vietnam had 43,346 valid foreign-invested projects with a total registered capital of USD 517.14 billion. Disbursed capital reached nearly USD 331.46 billion, equivalent to 64.6 per cent of total committed investment.
The FIA noted that foreign investment inflows into Vietnam continue to grow steadily despite ongoing fluctuations in the global economy.
The agency added that the increase in newly registered projects, capital adjustments, and share purchase transactions reflects strong investor confidence in the Vietnamese market. This confidence is demonstrated not only through new investments but also via the expansion of existing operations.
Challenges remain
Experts described the surge in foreign investment as a highly positive signal, especially considering that the foreign-invested sector contributed approximately USD 20.5 billion to Vietnam’s state budget in 2024 and accounted for about 74 per cent of the country’s total export turnover.
These figures underscore the vital role of foreign capital in supporting Vietnam’s economic growth, for which the Government has set a target of 8 per cent this year.
Experts noted that foreign investment contributes to GDP growth through three main channels: capital accumulation, technology transfer, and improvements in management and production efficiency.
Studies also suggest that foreign investment significantly enhances exports, not only in terms of volume but also by diversifying product structures. Key export-driven sectors attracting foreign investment include electronics, computers and components, garments, and footwear—industries that form the backbone of Vietnam’s export performance.
Vietnam’s reform-oriented policies, strong commitment to global integration, and open-door approach have made it an increasingly attractive destination for foreign investors. However, experts pointed out several limitations in the country’s capacity to attract and maximise the benefits of foreign capital.
Nguyen Mai, Chairman of the Vietnam Association of Foreign Invested Enterprises (VAFIE), told thoibaonganhang.vn that Vietnam suffers from a net loss in foreign investment benefits, as most profits are repatriated while technology transfer and managerial upskilling remain limited.
Other experts also cited weak linkages between foreign-invested firms and local enterprises as a major concern. Domestic firms have struggled to integrate deeply into global supply chains, resulting in minimal spillover benefits from foreign investment into the broader economy.
Given these challenges—alongside rapidly evolving technologies and increasing environmental requirements—experts say Vietnam must make a strategic shift in its approach to attracting foreign capital.
Nguyen Van Toan, Vice Chairman of VAFIE, told the online newspaper that future strategies should prioritise high-tech, environmentally friendly projects with strong technology transfer potential.
