FDI attraction needs breakthrough boost

Recent data from the Foreign Investment Agency under the Ministry of Planning and Investment (now Ministry of Finance) show positive signs for Vietnam’s foreign investment attraction in 2025. Specifically, in January 2025, more than US$4.33 billion in foreign investment was registered in Vietnam, marking a year-on-year increase of 48.6 percent.

FDI disbursement in Vietnam reached US$25.35 billion in 2024, up 9.4 percent from 2023

A report from the Foreign Investment Agency revealed that foreign direct investment (FDI) disbursement in Vietnam reached US$25.35 billion in 2024, up 9.4 percent from 2023. According to Nguyen Thi Huong, Director General of the General Statistics Office of Vietnam (now National Statistics Office), this is the highest FDI disbursement result ever recorded, despite a slight three-percent decline in registered FDI, which stood at US$38.23 billion.

Nguyen Thi Huong noted, “When converted to Vietnamese currency, FDI disbursement in 2024 increased by more than 10 percent. These figures reflect the attractiveness of Vietnam’s investment environment.”

January 2025 also saw the first billion-dollar project of the year, the US$1.2 billion capital increase for Samsung Display. The Bac Ninh provincial leadership granted the investment registration certificate for this project on the first working day of 2025.

On the same day, Bac Ninh Province also granted investment certificates for several other projects, with the total registered capital of US$1.67 billion.

Beyond Bac Ninh, in early February 2025, Binh Duong Province awarded investment approvals and certificates for seven foreign-invested projects, totaling nearly US$1 billion. Among them, two projects by VSIP, including an industrial park infrastructure project and a new urban area project, had a combined investment of more than US$812 billion.

A key highlight of January 2025 was the sharp increase in additional investment capital and investments made through capital contributions and stock purchases. In January, capital increases and capital contributions/stock purchases reached US$2.73 billion and US$322.9 million, marking respective increases of 509.6 percent and 70.4 percent compared to the same period last year. Thanks to this surge, despite a 43.6 percent decrease in newly-registered investment in January 2025, which reached US$1.29 billion, the total registered foreign investment still increased by 48.6 percent.

Efforts to improve investment environment

Although Vietnam has great opportunities to attract FDI, according to Prof., Dr. Nguyen Mai, President of the Association of Foreign-Invested Enterprises, Vietnam still faces many challenges in FDI attraction. Some countries are implementing policies to encourage their corporations to return and invest domestically. Meanwhile, investment-receiving countries are competing by offering attractive policies to draw foreign capital.

Vietnam has made significant efforts to improve its investment and business environment. However, many foreign investors have yet to be satisfied with certain aspects of the investment climate.

“Complex administrative procedures still hinder business and investment activities, failing to support enterprises. Major foreign corporations investing in Vietnam require a support mechanism to streamline administrative processes and reduce implementation time,” said Prof., Dr. Nguyen Mai.

Economists believe that to achieve its FDI goals, Vietnam must focus on key areas, including enhancing transport and energy infrastructure, investing in workforce quality, and rapidly reducing unnecessary administrative procedures that burden businesses. By doing so, Vietnam can build an investment-friendly environment characterized by simple, clear, and accessible procedures, making it easier for investors to implement projects. These measures will not only boost FDI attraction, but also help Vietnam achieve its goal of becoming a modern industrialized nation with a high-value economy by 2045./.