FDI wave reverses, the largest industrial capital in the North loses its 'throne'

The "chase" among FDI capitals.

Ho Chi Minh City in the South and Bac Ninh in the North, the "FDI hubs," are creating a race to attract foreign capital. The FDI attraction results for the first nine months show that Vietnam continues to be an attractive destination for international investment. According to data from the Ministry of Finance , the total registered FDI capital in Vietnam as of September 30th reached US$28.54 billion, an increase of 15.2% compared to the same period last year.

Foreign direct investment (FDI) disbursed in the first nine months reached a record high, the highest in the last five years, estimated at US$18.80 billion, an increase of 8.5% compared to the same period last year. Ho Chi Minh City led the country with a total registered investment of US$4.8 billion, accounting for 16.8% of the total national investment, despite a decrease of 8.9% compared to the same period. Bac Ninh followed closely behind with over US$4.7 billion, also accounting for 16.8%. Hanoi ranked third with over US$3.8 billion, equivalent to 13.6% of the total investment, followed by Dong Nai, Hai Phong, and Hung Yen.

Ho Chi Minh City is expected to attract $11.5 billion in FDI in 2026.

In terms of the number of projects, Ho Chi Minh City also dominates, accounting for 49.3% of new projects, 29.3% of projects with adjusted capital, and 71.2% of capital contribution and share purchase transactions. Notably, in the first eight months of the year, Bac Ninh unexpectedly surpassed the rest of the country with $4.7 billion in registered capital, equivalent to 17.9% of total investment. However, in September, Ho Chi Minh City overtook it with $4.8 billion, only slightly ahead of runner-up Bac Ninh ($4.799 billion).

Following its merger with Bac Giang, Bac Ninh further solidified its position as a "magnet" for FDI in Northern Vietnam. Already an industrial hub with numerous multi-billion dollar projects from Samsung, Canon, Goertek, etc., Bac Ninh is now further strengthened by joining forces with Bac Giang – a newly emerging destination for global capital with major players like Foxconn, Hana Micron, and Luxshare. This combination not only expands production scale but also forms a high-tech industrial cluster with the strongest ripple effect in the Northern region.

Last August, Bac Ninh held an investment promotion conference, awarding dozens of new investment decisions, affirming the attractiveness of the merged locality. Mr. Chau Nghia Van - Head of Foxconn Vietnam - said that the group has currently invested nearly 3.5 billion USD in Vietnam, with facilities located in Bac Ninh, Bac Giang and Quang Ninh, creating jobs for more than 100,000 workers. This year, Foxconn will continue to expand two projects in Quang Chau Industrial Park, increasing capital by an additional 320 million USD to meet global production needs.

In the South, FDI capital is also flowing strongly into Ho Chi Minh City after its merger with Binh Duong and Ba Ria - Vung Tau. If Ho Chi Minh City is considered the financial, service, and innovation center, then Binh Duong is the region's "industrial engine," and Ba Ria - Vung Tau plays the role of an international logistics gateway, possessing a deep-water port system and potential for coastal tourism. This convergence creates a comprehensive growth pole, providing a special investment attraction for the "regional megacity" of Ho Chi Minh City.

The city is currently finalizing a list of key projects to attract new investment, focusing on strategic areas such as international transshipment ports, innovation centers, research and development (R&D), new materials technology, clean energy, semiconductor industry, integrated circuit design and manufacturing, flexible electronics, high-tech chips and batteries. Among these, the Can Gio International Transshipment Port project is considered a symbol of the new infrastructure of the Southern key economic region.

Among the FDI capital registered in Ho Chi Minh City recently, many high-tech projects stand out, such as the microchip manufacturing equipment factory of BE Semiconductor Industries NV (US$42 million), the Amazon Data Services Vietnam project (US$48 million capital increase), and GSK Vietnam pharmaceutical company (US$133 million capital increase) expanding pharmaceutical production and research.

Strengthening long-term investment position

The latest survey by the European Chamber of Commerce in Vietnam (EuroCham) shows that up to 76% of member businesses are willing to recommend Vietnam as an investment destination, an increase of 4 percentage points compared to the previous quarter. The Business Confidence Index (BCI) also increased to 66.5 points, the highest level in the past 3 years.

EuroCham's Business Confidence Index (BCI) for the third quarter reached 66.5 points – the highest level in the past three years, reflecting the optimistic spirit of European businesses in Vietnam.

Mr. Bruno Jaspaert, President of EuroCham, pointed out that the most noteworthy aspect of this survey is the significant improvement in business sentiment. 80% of investors expressed optimism about Vietnam's prospects over the next five years, while 76% affirmed they would recommend Vietnam to partners as a potential investment destination. "This shows that Vietnam's attractiveness remains strong, despite external fluctuations," Mr. Bruno emphasized.

In particular, FTSE Russell's official upgrade of the Vietnamese stock market from frontier to secondary emerging market status has further strengthened the confidence of international investors. According to Bruno, this event not only reflects Vietnam's increasingly prominent position on the global investment map but also contributes to boosting optimism, clearly demonstrated by this quarter's BCI results.

The BCI also aligns with Vietnam's growth ambitions, with 42% of surveyed businesses confident that Vietnam will achieve its GDP growth target of 8.3-8.5% this year.