44,801 projects and USD 525.86 billion in registered capital

At the Vietnam Business Forum 2025 held in early November, international organizations and experts repeatedly underscored the attractiveness of Vietnam’s investment environment. This appeal stems not only from the Government’s open investment policies but also from the country’s political stability and long-term, sustainable growth prospects.

According to Mark Gillin, representative of the American Chamber of Commerce in Vietnam, the ongoing restructuring of administrative apparatuses and the adoption of a two-tier local government model mark a “historic step” that significantly enhances Vietnam’s competitiveness in the eyes of foreign investors, including those from the US.

Sharing this view, Bruno Jaspaer, Chairman of the European Chamber of Commerce in Vietnam, stressed that Vietnam is not simply a developing country, but one that is “undergoing a profound transformation.”

“From reorganizing State apparatus and merging localities to accelerating administrative reform, digital transformation and green growth, Vietnam is demonstrating the determination, capability and vision required to redefine its position as a competitive and sustainable investment destination in the 21st century,” he emphasized.

Thanks to this momentum, Vietnam has consistently posted strong results in FDI attraction and has repeatedly set new records in disbursement. In the first ten months of 2025, total registered FDI reached nearly USD 31.5 billion, up more than 15.6 percent year-on-year. Disbursement was estimated at USD 21.3 billion, an 8.8 percent increase compared to the same period of 2024, the highest 10-month disbursement figure to date.

To date, investors from 153 countries and territories have maintained active projects in Vietnam, totaling 44,801 valid projects with registered capital amounting to approximately USD 525.86 billion. Experts view these impressive figures as a testament to the strong confidence of international investors in Vietnam’s investment environment and its medium- to long-term economic outlook.

New context demands strategic shifts in FDI policies

While reaffirming Vietnam’s investment appeal, Phan Huu Thang, Chairman of the Vietnam Industrial Park Finance Association (VIPFA) and former Director of the Foreign Investment Agency, noted that both global and domestic conditions have changed, and this is the moment for Vietnam to conduct a strategic “policy shift” in FDI attraction.

He explained that traditional FDI inflows into Vietnam have long focused on manufacturing and processing sectors, aligned with global industrial trends and the labor-cost advantages that foreign investors sought. However, rising labor expenses, reconfigured supply chains, and heightened requirements for technology, sustainability and added value now necessitate a new approach. Vietnam, he argued, must prioritize FDI projects that offer high technology, strong value creation and meaningful linkages with domestic enterprises.

Sharing this perspective, Pham Thanh Binh, Director of the Northern Investment Promotion and Information Center under the Foreign Investment Agency (under the Ministry of Finance), observed that Vietnam is increasingly becoming a destination for major corporations in manufacturing, electronics, energy and services. Yet, given the ongoing global shifts, ranging from supply chain realignments to digital transformation and green commitments, Vietnam must reposition its strategy toward higher-quality, higher-value FDI.

In response, the Politburo has issued Resolution No.50-NQ/TW on improving institutions and policies to enhance the quality and effectiveness of foreign investment cooperation through 2030. The Resolution emphasizes selective FDI attraction, with quality, efficiency, technology and environmental protection serving as the key criteria. Priority is given to advanced, new and high technologies; clean production; modern governance; high value-added; and projects capable of generating spillover effects and strengthening Vietnam’s participation in global supply chains.

To meet these goals, Vietnam is further refining its legal frameworks and policies to ensure competitiveness and deeper international integration, while also supporting innovation-driven growth and improving productivity and economic competitiveness. The country aims to place its business environment and competitiveness among the top three in ASEAN by 2030. These efforts demonstrate Vietnam’s strong commitment to remaining a “bright spot” for foreign capital throughout the 21st century.

Wakabayashu Koichi, Chairman of the Japan Business Association in Vietnam, added that Japanese enterprises are moving away from labor-intensive investment toward higher-value industrial development, human resources training and infrastructure upgrading. He noted that Japanese companies are increasingly encouraging value-added sectors, including research and development, and enhancing capacity in energy transition projects as part of their commitment to a greener Vietnam.