According to a report by the Foreign Investment Agency (FIA) (Ministry of Finance), the manufacturing sector continues to be the main driver of FDI attraction, accounting for the largest share of both new projects (38.2%) and capital adjustments (56.5%).
China currently leads in new FDI projects in the manufacturing sector, accounting for 30.1%. This indicates a trend of Chinese businesses relocating production to take advantage of trade networks within ASEAN and internationally.
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Electric motorbike production at a factory in Vinh Phuc. Photo: Duc Huy |
Alongside the strong increase in FDI, the manufacturing production index in the first six months also rose by 11.1% year-on-year, exceeding the overall industrial growth rate of 9.2%. Total goods consumption increased by 9.8%, slightly lower than last year's 10.8% during the same period, but still positive.
However, inventory levels are also trending upwards. By the end of June, manufacturing inventories had increased by 6.7% compared to the previous month and 12% year-on-year. The average inventory rate reached 85.7%, significantly higher than last year's 76.9%.
Despite high inventory levels, most businesses remain optimistic. According to a survey by the General Statistics Office, 80.8% of manufacturing enterprises believe that Q3 operations will be better or stable compared to Q2. FDI enterprises are the most optimistic, with a rate of 81%, followed by the non-state sector (80.7%) and the state sector (79.8%).
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The industrial production index in the first six months increased by 9.2% year-on-year, with the manufacturing sector alone increasing by 11.1%. Photo: General Statistics Office |
Total registered FDI in Vietnam (including new registrations, adjustments, and capital contributions to purchase shares) reached over $21.5 billion, a nearly 33% increase year-on-year. New registered capital alone saw 1,988 investment projects totaling nearly $9.3 billion, a decrease of almost 10% in capital compared to the same period last year.
The FIA assesses that the consistent growth in both capital scale and the number of projects demonstrates investor confidence in Vietnam's business environment. FDI inflows, the trend of production expansion, and business expectations are considered the foundation for the manufacturing industry to continue leading investment attraction in the second half of 2025.
Hai Long
