FDI INFLOWS FORECAST TO REACH 38 BILLION USD ANNUALLY IN NEXT 5 YEARS

FDI capital in Vietnam is expected to continue growing positively, potentially reaching 38-40 billion USD annually during the next five years, honorary chairman of the Vietnam’s Association of Foreign Invested Enterprises Associate Professor Dr Nguyen Mai said.

According to Mai, the wave of foreign investment continues to be strengthened by traditional giants like Samsung, LG, Sumitomo and Mitsubishi, as well as emerging high-tech corporations such as Microsoft and Nvidia, with large-scale projects worth billions of US dollars.

Aside from the increase in the number and value of FDI projects, new capital flows into Vietnam are also expected to have high technological content, contributing to the transformation of the country’s growth model.

The ‘eagle nesting’ trend is predicted to become more pronounced, as more and more large multinational corporations choose Vietnam as a strategic investment destination.

Vietnam is an attractive destination in a world of significant changes due to geopolitical conflicts, supply chain disruptions and increasing protectionist trends. The country has a stable political and economic foundation, along with a market size of over 100 million people.

Foreign investors also value the Vietnamese Government's efforts to improve institutions, investment incentives and administrative procedures towards transparency and efficiency, shortening processing times and reducing costs for businesses.

“The development of a ‘constructive government’ model, promoting e-government and digital government, also contributes to improving the quality of governance and creating a more favourable and attractive investment environment for both domestic and foreign investors,” Mai said.

Vietnam's advantages also stem from its extensive participation in free trade agreements with the European Union, the US and many major partners, as well as the establishment of comprehensive strategic partnerships with dozens of important countries.

As a result, Vietnam's position on the international stage is increasingly enhanced, with trade volume exceeding 800 billion USD in 2025 and expected to potentially reach 1 trillion USD in the near future.

The Southeast Asian nation's positive macroeconomic indicators also contribute to increasing investment attractiveness. These include per capita income exceeding 5,000 USD and GDP reaching approximately 520 billion USD, ranking Vietnam 33rd in the world.

According to Dr Tran Toan Thang, head of the International and Integration Policy Department at the Institute of Economic and Financial Strategy and Policy, many multinational corporations are accelerating investment restructuring under the impact of global uncertainties. Vietnam is thus seen as sending positive signals regarding its investment environment at the right time to welcome a wave of capital relocation.

Changes in the administrative apparatus towards streamlining are especially expected to open up new development space and improve management efficiency and national competitiveness, which will help increase the interest of foreign investors in the country.

“With favourable factors emerging, the FDI capital flow into Vietnam this year is expected to increase by approximately 1-2 billion USD compared to 2025, reaching up to 29 billion USD,” Thang predicted.

To effectively capitalise on this opportunity, Vietnam will prioritise attracting investment in key sectors, such as semiconductors and high technology, green transportation, digital infrastructure and AI, fintech and renewable energy.
These sectors are considered pillars that will help the country participate more deeply in the global value chain and anticipate new development trends in the global economy.

However, amid increasingly fierce competition to attract FDI, Vietnam needed to upgrade its investment attraction platform instead of continuing to rely on cost incentives, Thang noted.

Specifically, the country needed to shift rapidly towards forms of non-taxable investment support, while designing conditional incentives linked to the country's selective FDI attraction strategy.

The focus should be on further simplifying investment procedures, increasing policy transparency, ensuring long-term legal stability and strengthening intellectual property protection, Thang said.

Source: VCCI