All-time high for Vietnamese FDI in 2024

Vietnam's FDI disbursement for 2024 reached an all-time high, totaling more than US$25.3 billion, up 9.4% from 2023, according to the General Statistics Office's report released on January 6.

Foxconn's factory in Bac Giang Province. Photo: Bac Giang Newspaper

Among the disbursed capital, the processing and manufacturing sector accounted for $20.6 billion, or 81.4% of the total FDI. The real estate sector followed with $1.8 billion or 7.2%, while the production and distribution of electricity, gas, hot water, steam and air conditioning contributed $1.07 billion or 4.2% of the total FDI.

As of December 31, 2024, the total registered foreign investment in Vietnam reached $38.23 billion, down 3% year-on-year.

In 2024, FDI projects in Vietnam mainly targeted the processing and manufacturing industries, attracting nearly $25.6 billion, accounting for 66.9% of the total registered capital. The real estate sector followed with an investment of $6.3 billion, making up 16.5% of the total.

A total of 114 countries and territories invested in Vietnam in 2024. Singapore took the lead with nearly $10.2 billion, representing 26.7% of the total investment, up 31.4% on year. South Korea ranked second with nearly $7.1 billion, representing 18.5% and an uptick of 37.5%. China followed with $2.8 billion (14.4%), while Hong Kong poured in nearly $2.2 billion, accounting for 11% of total investment.

In terms of locations, the northern province of Bac Ninh remained the top FDI destination, attracting nearly $5.1 billion, more than 2.8 times the 2023 total. Haiphong and Ho Chi Minh City ranked second and third, with investments of over $4.9 billion and $3 billion, respectively.

High-value industries at the forefront

A factory of LG Innotek Vietnam Haiphong Co., Ltd. Photo: LG Innotek

In 2024, FDI in Vietnam was targeted at high-value sectors such as electronics, semiconductors, and green technology. Experts predict that this trend is likely to continue until 2025, creating new hiring needs in the high-tech and semiconductor industries.  

Regarding the collaborations, it included the establishment of the Vietnam Research and Development Center (VRDC) and an AI data center in the country, following an agreement between the Vietnamese government and US chipmaker  NVIDA. This positions Vietnam as a top AI research and development hub in Asia, ranking third in the world after the US and Taiwan (China).

In November 2024, Shunsin Technology Co, a subsidiary of Foxconn, announced an $80 million investment in chip production in the northern province of Bac Giang. The plant is expected to produce 4.5 million electronic components annually, with all products exported to the US, EU, and Japan.

US-based Meta plans to expand its virtual reality equipment production in Bac Giang by 2025, potentially creating around 1,000 jobs in Vietnam. At the same time, LG Innotek, a subsidiary of South Korea's LG Group, is investing nearly $255 million to expand its manufacturing base in Haiphong, which will significantly increase its camera module production capacity.

US space company SpaceX has announced plans to invest $1.5 billion in Vietnam, according to Tim Hughes, Senior Vvice President for Global Business and Government Affairs, during a high-level meeting last September. 

In August 2024, South Korea's Signetics signed a deal with CNCTech to set up a semiconductor factory in Vinh Phuc with an investment of over $100 million, which is expected to start operations in 2025.

While increased FDI offers significant opportunities, local economists urge caution amid ongoing trade tensions. Vo Tri Thanh, director of the Institute for Brand and Competitiveness Strategy, cautioned that deeper integration into the global market means more potential trade disputes. Potential trade fraud and the risk of Vietnam being used as a transit point to circumvent tariffs need to be watched, he said.