The Foreign Investment Agency (FIA) report also noted that adjusted capital increased nearly 3.4 times and contributed capital and share purchases increased 1.8 times. This not only reflects the inflow of new capital, but also shows that existing investors are continuing to expand their operations and increase their long-term commitment to the Vietnamese market.

FDI continues to flow strongly into the processing and manufacturing sector. In the first 5 months alone, this sector attracted over USD 10.4 billion in registered capital, accounting for nearly 56.6% of total FDI, an increase of nearly 32% compared to the same period last year. The high proportion of processing and manufacturing shows that Vietnam is continuing to play a central role in the global supply chain, especially focusing on key sub-sectors such as electronics, components, and high-tech equipment. These sectors have also been attracting investment from many large FDI corporations in Vietnam recently.

Electric motorbike production at the Vinh Phuc factory. Photo: Duc Huy

Electric motorbike production at the Vinh Phuc factory. Photo: Duc Huy

Alongside new investment capital, mergers and acquisitions (M&A) activity has also been vibrant. In the first 5 months, the total value of contributed capital and share purchases reached over USD 2.85 billion, 1.8 times higher than the same period last year. Many foreign investment funds and businesses are actively seeking opportunities to enter the Vietnamese market by acquiring stakes in domestic businesses with growth potential. This is an opportunity for domestic businesses to mobilize additional financial resources, technology, and management experience from international strategic partners.

Asian partners dominate the FDI source structure. Singapore leads with total registered capital of USD 4.38 billion, accounting for 23.8% of total FDI. South Korea ranks second with USD 2.93 billion, a 2.5-fold increase compared to the same period last year. Following are China, Japan, and Malaysia – countries with a large manufacturing presence in Vietnam. The increased investment from Asian investors reflects a production shift strategy to diversify supply chains and reduce dependence on global geopolitical hotspots.

Along with the strong increase in capital flow, accelerating public investment disbursement and administrative procedure reforms are creating further attraction for the investment environment. By the end of May, disbursed public investment capital reached 199,300 billion VND, 2.5% higher than the same period last year, according to Government Resolution 162/NQ-CP issued on 7/6. Accelerating public investment disbursement is expected to further improve transportation and logistics infrastructure, supporting the attraction of new FDI projects.

In particular, Decree 118/2025/ND-CP was issued by the government on 9/6, stipulating the implementation of the "one-stop shop, single-window" mechanism at the One-Stop Shop Department and the National Public Service Portal. This mechanism is being deployed synchronously at all levels, from central to local, helping investors save time and costs in investment procedures.

Hai Long