RECAP: INDUSTRIAL MANUFACTURING FDI IN VIETNAM 2025
Vietnam 2025 – Consolidation, innovation, and striving for greatness
Rising trade, legal, and political challenges from abroad also create opportunities for transformation for Vietnam. Domestic administrative reform and green transformation build the foundation for sustainable growth.
Attract industrial FDI: Project numbers expand while capital decreases
2025 has concluded, despite fluctuations and instabilities, FDI attraction in Vietnam’s industrial manufacturing still recorded growth in the number ofprojects since 2023. In contrast, the total scale of attracted capital has decreased for 3 consecutive years. And in 2025, attracted capital decreased by more than 20% YoY.
China boosts manufacturing presence in Vietnam
Since 2020, Chinese investors have been increasing their manufacturing presence in Vietnam as the proportion of this country’s investment by project count shows an expanding trend. In 2025, Chinese investors accounted for the majority of industrial manufacturing projects in Vietnam, the highest level since 2020.
Northern & Southern are the focal points for industrial FDI
In 2025, the TOP 10 provinces and cities attracting the most investment accounted for over 90% of the national market share, showing that investment flows continue to be highly concentrated in a few key localities, while the spillover to remaining provinces remains limited. Notable key industrial investment localities include Bac Ninh, Dong Nai, Ho Chi Minh City, Hai Phong, and Hung Yen.
Electronics leads FDI attraction, despite decelerating growth
Electronics continues to lead in attracting manufacturing FDI despite decelerating growth. The Textile and Garment has recorded high growth over the past 3 years.
Northern Vietnam remains the hub for attracting and manufacturing in the Electronics industry. Meanwhile, Southern Vietnam leads in attracting the Textile and Garment industry. Over the past 3 years, the Southern region has witnessed an expansion in FDI attraction share across key sectors.
High-tech manufacturing is gaining strong investment attraction
The attraction of high-tech industrial manufacturing FDI into Vietnam has shown a clear upward trend in recent years, with total investment capital and the number of projects in 2025 reaching their highest levels since 2021.
This trend highlights Vietnam’s strong potential to attract major high-tech manufacturers and move up the value chain, driven by improvements in human capital, supply chains, and the investment policy environment.
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SOURCE: HOUSELINK
