Vietnam is emerging as a Bright Spot attracting FDI in the Region

According to the Foreign Investment Agency (Ministry of Finance), the total foreign investment (FDI) registered in Vietnam in the first quarter of 2025 (as of March 31, 2025) reached 10.98 billion USD, recording an impressive growth of 34.7% over the same period last year. This is a positive signal showing the attractiveness of Vietnam's investment environment in the context of many challenges in the global economy.

In the first quarter of 2025, 850 new projects were licensed with a total registered capital of 4.33 billion USD, an increase of 11.5% in the number of projects but a decrease of 31.5% in registered capital compared to the same period in 2024. The processing and manufacturing industry continued to attract the greatest attention from foreign investors with newly registered capital reaching 2.62 billion USD, accounting for 60.5% of the total newly registered capital. Real estate business ranked second with 1.13 billion USD, accounting for 26.1%. The remaining industries attracted 581.5 million USD, accounting for 13.4%.

Mr. Lim Dyi Chang - Senior Director of Corporate Banking, UOB Vietnam - commented that in the context of profound shifts that are reshaping the global trade landscape, Vietnam is not only emerging as a bright spot in attracting foreign direct investment flows, but is also one of the potential markets attracting strong interest from international investors.

"Vietnam has not only emerged as an attractive destination for FDI capital flows, but also played a strategic role in the regional value chain, connecting ASEAN economies," said Mr. Lim Dyi Chang.

According to Mr. Lim Dyi Chang, Vietnam needs to transform itself from a mere capital recipient into a strategic partner, proactively creating value

To maintain and develop its position as an FDI hub, Mr. Lim Dyi Chang suggested that Vietnam should prioritize the development of modern and synchronous infrastructure, especially in the fields of logistics, energy and digital connectivity - essential foundations to ensure operational efficiency and business scalability. In particular, maintaining a transparent, stable and effective legal environment, thereby contributing to strengthening investor confidence and enhancing national competitiveness.

Mr. Lim Dyi Chang said that Vietnam also needs to promote close cooperation between the public and private sectors, especially in the areas of human resource development, regulatory compliance and promoting innovation - key factors for long-term competitiveness.

Maintain an open and efficient financial ecosystem, support capital circulation, meet diverse funding needs and promote financial innovation. Develop a strong middle class, this factor not only promotes domestic consumption but also plays an important role in supplying skilled labor to Vietnam in the coming time.

Mr. Lim Dyi Chang recommended that Vietnam should have a strong commitment to sustainable development and ESG standards, which are essential factors in the investment decisions of global financial institutions. Finally, it is necessary to develop flexible policies that are suitable for the development of the digital economy, thereby creating conditions for innovation in an effective governance environment.

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