FDI to Vietnam up 35% in Q1 2025

THE HANOI TIMES — Foreign direct investment (FDI) into Vietnam hit nearly US$11 billion in the first quarter of this year, up 34.7% year-on-year, according to the Ministry of Finance’s Foreign Investment Agency.

Deputy Minister of Finance Do Thanh Trung attributed the growth to strong gains in additional capital contributions and equity transactions.

Singapore was the biggest investor with $1.3 billion, accounting for 30.5% of total amount in the period, followed by China with $1.2 billion (28.5%), China’s Taiwan ($368.1 million, 8.5%), and Japan ($341.8 million, 7.9%).

Among localities, the northern province of Bac Ninh led FDI inflows with nearly $1.9 billion. This amount accounted for 17.3% of the national total and was more than double that of the same period last year.

Ho Chi Minh City came in second with $1.4 billion, representing 13% of the national total, a 58.3% increase year-on-year. Hanoi followed with $1.4 billion (12.9%), up 23.6%.

Other provinces such as the southern provinces of Dong Nai and Ba Ria-Vung Tau, and the northern province of Ha Nam also made notable contributions to FDI growth.

Actual disbursed FDI in the first three months of 2025 reached nearly $5 billion, up 7.2% year-on-year. This marks the highest Q1 disbursement in five years.

The manufacturing and processing sector attracted $4.1 billion, accounting for 81.7% of the total disbursed FDI, according to Nguyen Thi Huong, Director General of the General Statistics Office under the Ministry of Finance.

2025 outlook: global headwinds, policy challenges

Deputy Minister Do Thanh Trung acknowledged at a meeting in Hanoi on April 6 that the growing global economic risks are a concern. International institutions and financial organizations have downgraded global growth forecasts amid fears of a possible recession, which could directly affect Vietnam.

He also cited the US recent tariff policy changes which apply to all countries including Vietnam, as an important factor affecting investor sentiment and future prospects.

"Vietnam's investment climate will inevitably feel some impact. However, I believe that with the government's strong efforts, we will maintain the confidence of investors and businesses," said Trung.

The Ministry of Finance is proactively working with major investors to accelerate the implementation of large-scale foreign investment projects, he added.

“Our FDI targets for 2025 remain unchanged at around $40 billion and disbursed capital of close to $27 billion to $28 billion," he said.

Last year, total FDI in Vietnam reached US$38.2 billion, down 3% from 2023.