Attracting FDI: The processing and manufacturing industry holds the dominant position.

In the first 11 months of 2025, Vietnam attracted $33.69 billion in foreign direct investment (FDI); of which, the processing and manufacturing industry remained the sector receiving special attention from foreign investors.

Not only does registered FDI capital dominate the processing and manufacturing industry, according to the General Statistics Office, actual FDI implemented in Vietnam in the first 11 months of 2025 is estimated at US$23.6 billion, an increase of 8.9% compared to the same period last year; of which, the processing and manufacturing industry reached US$19.56 billion, accounting for 82.9% of total implemented foreign direct investment.

Electronic component manufacturing at Star Engineers Vietnam Company, Binh Xuyen I Industrial Park ( Phu Tho ). Photo: Nguyen Thao/TTXVN

According to data from the General Statistics Office ( Ministry of Finance ), the total registered foreign direct investment in Vietnam from the beginning of the year to November 30, 2025, including newly registered capital, adjusted registered capital, and the value of capital contributions and share purchases by foreign investors, reached US$33.69 billion, an increase of 7.4% compared to the same period last year.

Specifically, out of a total of 3,695 newly licensed FDI projects in the first 11 months, with a registered capital of US$15.96 billion, the manufacturing and processing industry accounted for US$9.17 billion, representing 57.5% of the total newly registered capital. This result excludes the real estate sector, which ranked second with US$3.14 billion, and the remaining sectors, which accounted for 3.65%.

The first 11 months also saw 1,318 FDI projects licensed in previous years register for adjustments to increase their investment capital, totaling US$11.62 billion. According to Ms. Nguyen Thi Huong, Director of the Statistics Department, if both newly registered capital and adjusted registered capital of projects licensed in previous years are included, the total registered foreign direct investment in the processing and manufacturing industry reached US$16.52 billion, accounting for 59.9% of the total newly registered and increased capital.

Foreign investors registered 3,225 capital contributions and share purchases totaling US$6.11 billion. Of these, 1,238 transactions involved increasing the registered capital of businesses, valued at US$2.37 billion, and 1,987 transactions involved foreign investors acquiring domestic shares without increasing registered capital, valued at US$3.74 billion.

According to the General Statistics Office, foreign investors' capital contributions and share purchases in the processing and manufacturing industry reached US$2.0 billion. Thus, including newly registered capital, increased registered capital, and capital contributions through share purchases, foreign investors have invested US$18.52 billion in the processing and manufacturing sector in the first 11 months, accounting for nearly 55% of the total FDI registered in Vietnam from the beginning of the year to date.

Not only does registered FDI capital dominate the processing and manufacturing industry, according to the General Statistics Office, realized FDI in Vietnam in the first 11 months of 2025 is estimated at US$23.6 billion, an increase of 8.9% compared to the same period last year. This is the highest realized foreign direct investment for the first 11 months in the past 5 years; of which, the processing and manufacturing industry reached US$19.56 billion, accounting for 82.9% of the total realized foreign direct investment. Meanwhile, real estate business activities reached US$1.67 billion, accounting for 7.1%; electricity, gas, hot water, steam and air conditioning production and distribution reached US$754.9 million, accounting for 3.2%.

According to economic experts, with a population of 100 million, an abundant labor force, deep integration into the international economy, and a rapidly improving investment environment, Vietnam remains an attractive destination for foreign investors.

Specifically, according to Mr. Hong Sun, Honorary Chairman of the Korean Chamber of Commerce in Vietnam (KoCham), Vietnam remains an ideal investment destination for foreign businesses in general and Korean businesses in particular, especially in the medium and long term. Currently, South Korea is the largest investor in Vietnam with approximately $95 billion in registered capital, including the presence of global corporations in the industrial sector such as LG and Samsung.

Vietnam attracts South Korean investors thanks to its suitable FDI attraction strategy, political stability, high standing, and favorable investment environment. The social and business environment in Vietnam is relatively stable, and the Vietnamese people are very friendly and law-abiding.

Furthermore, Vietnam's macroeconomic situation is improving due to a solid foundation, particularly the shift from a three-tiered to a two-tiered administrative system for greater efficiency and effectiveness. Policy responses and investor support are also becoming more effective. Along with this change, administrative procedures are also improving in both quality and processing time.

According to Mr. Hong Sun, the processing and manufacturing industry in Vietnam has recently received significant attention from Korean investors such as Samsung and LG. In the future, in addition to processing and manufacturing, Korean investors will also focus on new fields such as semiconductors, artificial intelligence, energy, and smart urban infrastructure development.

Highly valuing investment opportunities in Vietnam, especially in the processing and manufacturing industry, Mr. Hamada Shogo, General Director of Daiwa Vietnam Co., Ltd. (a Japanese FDI enterprise), said that the company has invested in Vietnam since 1995 with its first factory in Ho Chi Minh City and began expanding its operations to Hanoi in 1997.

“After investing in Vietnam for some time, we have found that the open-door policy and active participation in signing Free Trade Agreements (FTAs) have opened up many opportunities for the development of Vietnamese businesses in general and FDI businesses investing in Vietnam in particular,” Mr. Hamada Shogo informed.

In particular, the Vietnamese government is also making great efforts to improve the investment and business environment through policies related to investment in industrial parks, creating favorable conditions for businesses operating within these parks.

Daiwa Vietnam agrees with Vietnam's policies related to administrative procedure reform, which have significantly shortened the time required to complete administrative procedures, contributing to enhancing the competitiveness of businesses.

"When procedures are streamlined, the time required to complete them is also shortened, making it easier for businesses to carry out their work, cutting down on wasteful costs and travel time. I think this is one of the new points that positively supports the development of FDI businesses operating in Vietnam," Mr. Hamada Shogo further shared.

Also praising the investment environment in Vietnam, Mr. Ogawa Tsuyoshi, Director of TKR Company - a Japanese enterprise that invested in Vietnam in 2017 and is developing quite positively - said: The company expects revenue to reach VND 1,244 billion in 2025 and VND 1,847 billion in 2027, 1.5 times higher than in 2025. To achieve this goal, in 2027 the company will build its third factory in Vietnam to expand production, and simultaneously invest in equipment to be able to process and assemble circuit boards internally, aiming to expand orders for assembling complete products.

Nevertheless, Vietnam's investment environment still faces obstacles such as: the validity period of business visas, especially the complex and time-consuming visa procedures for foreign experts and business managers. In addition, tax procedures (VAT refund procedures) and customs procedures (customs clearance procedures) also hinder project implementation.

To remove these barriers, Mr. Hong Sun suggested that Vietnam needs to focus on improving the investment environment by minimizing legal obstacles, enhancing the transparency and efficiency of the administrative apparatus, and strengthening infrastructure, especially in the fields of information technology and energy…

Source: https://baotintuc.vn/kinh-te/thu-hut-fdi-nganh-cong-nghiep-che-bien-che-tao-chiem-uu-the-20251212151959696.htm