FDI inflows still choose Vietnam as an attractive destination

(Inspectorate) - Vietnam's economy enters the first quarter of 2026 with a positive growth forecast on that solid foundation, bringing many expectations that the growth pace will continue to increase, targeting high value-added industries thanks to Vietnam's stable investment environment.

Positive outlook

Investors' confidence in the investment and business prospects in Vietnam remains very positive despite global fluctuations. In 2026, this capital flow will not only be maintained, but also expected to be more sustainable and of higher quality, thanks to the advantages of a "connected economy" with great openness, clear preferential policies and a strategic position in the global supply chain.

International financial institutions are optimistic that FDI disbursement this year can increase by 8-15%, reaching about 27-30 billion USD.

According to the World Economic Outlook Report of the International Monetary Fund (IMF) published in October 2025, Vietnam is in the group of three countries with the fastest growth rate in the world.

Data from the Statistics Office shows that, as of December 31, 2025, total foreign investment capital registered in Vietnam will reach 38.42 billion USD, up 0.5% compared to the previous year. Notably, FDI realized in Vietnam in 2025 is estimated at 27.62 billion USD, up 9% compared to the previous year.

This is the highest amount of foreign direct investment in the past 5 years, demonstrating the attractiveness of the investment environment and the central role of the processing and manufacturing industry. Investors from Singapore, China, Japan and South Korea continue to be major partners, demonstrating Vietnam's growing position in the global FDI picture.

It is the stability of the investment environment, drastic institutional reforms and a series of incentives for the high-tech sector, that are Vietnam's advantages in attracting global investment flows. Especially in the context of a volatile world, Vietnam has become a prominent destination with a stable investment environment, consistent and long-term policies.

Assessing FDI registered in Vietnam in 2025, Dr. Le Dang Doanh, former Director of the Central Institute of Economic Management, said that this is an extremely impressive result, and meaningful in the context that the domestic and world economies are being affected by global trade policies. That further proves that the attractiveness of Vietnam's investment environment is being improved, creating confidence for foreign investors.

Mr. Ngo Dang Khoa - Head of Foreign Exchange, Capital Markets and Securities Services, HSBC Vietnam said: "We expect FDI in 2026 to be better and continue to go into manufacturing industries, industries, and chains that can provide more added value. Therefore, it can create jobs and help Vietnam to create higher added value."

In fact, sustainable investment flows continue to consider Vietnam as an attractive destination thanks to the advantages of a stable political environment, economic growth, social consensus with common goals and tax incentives.

Shifting focus to attracting high-quality capital

Emphasizing the role of the global geopolitical context in shaping investment flows, Mr. Nguyen Duc Hai, Senior Investment Director, Manulife Investments Vietnam said that the trend of polarization and detachment between the two major economies, the US and China, is becoming more and more pronounced. leading to the need to shift the supply chain. In that context, Vietnam will be one of the attractive destinations, especially when the US needs to find alternative supplies to meet large import demand.

In addition to the advantage of location in the supply chain, Mr. Hai said that Vietnam also scored points thanks to its goodwill to cooperate, comply with new US regulations, open the market and increase transparency in export activities. This helps strengthen the trust of major partners and creates a foundation to attract capital flows from many other countries.

"Vietnam is currently one of the few countries in the region with a strong commitment to free trade and investment, with a network of 17 free trade agreements signed," a representative of Manulife Investments Vietnam pointed out.

According to the Foreign Investment Agency (Ministry of Finance), Vietnam still maintains FDI attraction thanks to its strategic location in Southeast Asia, extensive FTA network, market of nearly 100 million people and great demand for energy, infrastructure, and consumption. The orientation to attract high-quality FDI, green economy and high technology helps Vietnam adapt well to global investment trends.

The results of attracting FDI in 2025 show that Vietnam still retains its position as a strategic destination for international capital flows. Registered and implemented capital flows are both at a positive level, further strengthening investor confidence and creating a foundation for FDI to accelerate when entering 2026.

Given that Vietnam is still the most attractive destination in Asia thanks to the stable socio-political environment, competitive labor costs and the Government's strong determination to attract FDI, Mr. Son Won Sik, General Director of Sung Shin Advisory Co., Ltd. affirmed that Korean businesses not only consider Vietnam as a production base but also as a center strategies for medium and long-term plans.

Vietnam continues to be a reliable destination for investors thanks to its stable macro environment, consistent investment policies and continuously improving capacity in the electronics and components manufacturing industries. However, competition in the region is also becoming increasingly fierce, especially from India, Malaysia and Indonesia, which are promoting tax incentives and the development of specialized industrial parks.

This requires Vietnam to continue to shift its focus from attracting large capital to attracting high-quality capital, focusing on source technology, innovation, linking value chains and increasing the rate of localization.

Dr. Nguyen Anh Tuan - Chairman of the Association of Foreign-Invested Enterprises (VAFIE) noted that in 2025, the Politburo has issued many important resolutions to promote the development of science and technology, innovation, private and state economic development, contributing to building a complete institutional framework, creating room for the strong implementation of breakthrough reforms in the pillar economic fields in 2026 and the coming period, including FDI attraction activities.

Therefore, according to experts, in order to attract higher FDI investment, preferential policies need to be associated with a commitment to technology transfer, human resource training and domestic supply chain linkage. Instead of relying only on the level of investment capital or the number of jobs, it is necessary to evaluate the effectiveness of investment based on added value, the level of localization and the ability to spread technology.

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