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

The "chase" of FDI capitals

The “FDI capital” Ho Chi Minh City in the South and Bac Ninh in the North are creating a race to attract foreign capital. The results of attracting FDI in the first 9 months show that Vietnam continues to be an attractive destination for international investment capital. Data from the Ministry of Finance shows that the total registered FDI capital in Vietnam as of September 30 reached 28.54 billion USD, up 15.2% over the same period last year.

FDI capital realized in the first 9 months reached a record, the highest in the past 5 years, estimated at 18.80 billion USD, up 8.5% over the same period. Of which, Ho Chi Minh City leads the country with a total registered investment capital of 4.8 billion USD, accounting for 16.8% of the total investment capital nationwide, although down 8.9% over the same period. Bac Ninh follows closely behind with more than 4.7 billion USD, accounting for 16.8%. Hanoi ranks third with more than 3.8 billion USD, equivalent to 13.6% of the total investment capital, followed by Dong Nai, Hai Phong and Hung Yen.

Ho Chi Minh City is expected to attract 11.5 billion USD in FDI capital 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 capital adjustment projects and 71.2% of capital contribution and share purchase deals. Notably, in the first 8 months of the year, Bac Ninh unexpectedly took the lead in the country with 4.7 billion USD in registered capital, equivalent to 17.9% of total investment capital. However, in September, Ho Chi Minh City "usurped the throne" with 4.8 billion USD, slightly higher than the "runner-up" Bac Ninh (4.799 billion USD).

After merging with Bac Giang, Bac Ninh has further affirmed its position as the FDI “magnet” of the North. Already an industrial “capital” with a series of billion-dollar projects by Samsung, Canon, Goertek… Bac Ninh is now empowered by joining forces with Bac Giang - an emerging destination for global capital flows with big names such as Foxconn, Hana Micron, Luxshare. This combination not only expands the scale of production but also forms a high-tech industrial cluster with the strongest influence 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 Headquarters - 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 320 million USD to meet global production needs.

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

The city is currently finalizing a list of key projects to welcome new capital flows, focusing on strategic areas such as international transit ports, innovation centers, research and development (R&D), new material technology, clean energy, semiconductor industry, microchip design and manufacturing, flexible electronics, chips and high-tech batteries. In particular, the Can Gio International Transit Port project is considered a new infrastructure symbol of the Southern key economic region.

Among the FDI capital registered in Ho Chi Minh City recently, many high-tech projects, notably the microchip manufacturing equipment factory of BE Semiconductor Industries NV (42 million USD), the Amazon Data Services Vietnam project (increased capital of 48 million USD) or GSK Vietnam Pharmaceuticals (increased capital of 133 million USD) to expand 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 introduce 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 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 - Chairman of EuroCham - pointed out that the most notable thing about this survey is the clear improvement in business sentiment. 80% of investors expressed optimism about Vietnam's prospects in the next 5 years, while 76% affirmed that they would introduce Vietnam to their partners as a potential investment destination. "That shows that Vietnam's attractiveness remains sustainable, despite external fluctuations," Mr. Bruno emphasized.

In particular, FTSE Russell’s official upgrade of Vietnam’s stock market from frontier to secondary emerging has further strengthened the confidence of international investors. According to Mr. Bruno, this event not only reflects Vietnam’s increasingly high position on the global investment map but also contributes to promoting optimism, which is clearly demonstrated through this quarter’s BCI results.

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