HÀ NỘI — Although global foreign direct investment (FDI) is entering a phase of adjustment, contracting and placing greater emphasis on quality, Việt Nam continues to benefit from the regional wave of production repositioning, attracting more than US$31.5 billion in the first 10 months of 2025.

A series of new and expanded FDI projects were licensed in October, bringing total registered FDI in the first 10 months of 2025 to $31.5 billion, up 15.6 per cent year-on-year. Disbursed capital also reached a five-year high of $21.3 billion, marking an increase of 8.8 per cent.

These figures show that Việt Nam remains an attractive destination for foreign investors, who continue to place trust in the country’s growth prospects, investment environment and economic standing, Minister of Finance Nguyễn Văn Thắng said while releasing the data at the 2025 Việt Nam Business Forum.

This statement was reiterated by many different investors at the forum. Chairman of the European Chamber of Commerce in Việt Nam Bruno Jaspaer even referred to Việt Nam as a story of transformation. He said it has changed from an agricultural economy known for putting rice on the table and coffee in every cup each day, into a regional hub for manufacturing, technology and innovation.

The Ministry of Finance’s Foreign Investment Agency (FIA) noted that manufacturing and processing continued to attract the most FDI. Over the 10-month period, investment in this sector reached $18.2 billion, accounting for more than 57.8 per cent of total registered capital and increasing by 6.8 per cent year-on-year. Along with quantity, the quality of FDI has also been improving as more projects in electronics, AI and semiconductors flow into Việt Nam.

At a recent roundtable on Việt Nam’s FDI attraction efforts, Lê Thị Hải Vân, an FIA representative in Washington D.C., US, highlighted investments from Intel, Amkor, NVIDIA, Meta and Google as proof of this trend.

She said American companies are prioritising semiconductors, AI, clean energy, economic infrastructure and health care when investing in Việt Nam, reflecting a shift from quantity to quality.

Seizing the production repositioning wave

This year, the global investment environment has been visibly affected by uncertainties across global supply chains.

According to the United Nations Conference on Trade and Development, global FDI continues to fall after an 11 per cent decline in 2024. Beyond geopolitical tensions and slowing global growth, FIA noted that the G7's 'near-shoring' and 'friend-shoring' policies aimed at reducing dependence on China have made international investors more cautious about expanding new projects or making long-term commitments, especially in the high-tech, electronics and energy sectors.

Nevertheless, Việt Nam’s opportunities remain. FIA assessed that although global FDI flows are adjusting, Việt Nam still stands to gain from the regional production shifts, particularly in key sectors such as electronic components, medical equipment and renewable energy.

However, the agency emphasised that Việt Nam must attract large volumes of capital as well as prioritise high-quality investment, including high-tech industries, global value chain integration by domestic enterprises and pushing value-added local products.

Vân noted that trade tensions and supply chain shifts offer Việt Nam a major opportunity to become a significant destination, but also present challenges regarding its ability to meet the requirements of high-tech industries. — VNS