Foreign direct investment (FDI) attraction has been a bright spot in the Vietnamese economic panorama in 2024, as the country has recorded 41,720 valid FDI projects worth 496.7 billion USD funded by investors from 147 countries and territories. The Ministry of Planning and Investment (MPI) reported FDI projects have been present in all 63 cities and provinces nationwide, with Ho Chi Minh City leading the way with over 58.4 billion USD, followed by southern Binh Duong province with nearly 42.4 billion USD, and Hanoi with nearly 42.2 billion USD.
Hanoi is one of the key destinations for foreign investment. Photo: VNA
Photo series: Production line for electronic components at INOAC Vietnam Co., Ltd., a Japanese-invested firm located in Quang Minh Industrial Park of Hanoi. Photo: VNA
From outstanding example of
Binh Duong
According to the MPI, as of November 2024, the southern province of Binh Duong had surprised many by overtaking Hanoi, moving into second place after Ho Chi Minh City in terms of FDI attraction.
The southern industrial hub has emerged as one of the top provinces for FDI attraction in Vietnam. In the first 11 months of this year, it attracted more than 1.8 billion USD in investment, surpassing its 2024 target. This includes 184 new projects, 149 projects with adjusted capital, and 121 projects involving capital contributions and share purchases. With a total of 4,378 valid projects and registered capital of nearly 42.4 billion USD, Binh Duong is now ranked second in the country, only behind Ho Chi Minh City.
Binh Duong is one of the leading localities in Vietnam in attracting foreign investment. Photo: VNA
Photo series: Production of kitchenware for export in Binh Duong. Photo: VNA
The province is home to 29 industrial zones and clusters, with a land occupancy rate in its industrial zones exceeding 93%. Large-scale projects have been drawn to Binh Duong, including a 1.3 billion USD toy production facility from Denmark’s Lego and two industrial real estate projects from BW Group, worth a total of 237 million USD.
“To consistently attract foreign investors and remain at the top of the national FDI rankings, Binh Duong has worked tirelessly to implement innovative and decisive economic management, improve the business environment, and stick to the province’s development planning, which has been highly praised by the business community.”
Nguyen Trong Nhan, Director of the provincial Department of Planning and Investment
LEGO is a major investment project in Binh Duong, helping the province meet global high-tech standards. In the photo: Children participating in the Creative LEGO Playground workshop. Source: Vietnam LEGO Club
Binh Duong’s strategy for attracting FDI in the new period is not to attract investment at all costs, but to be selective in terms of industry, scale, technology, and location, ensuring alignment with the provincial planning scheme. The province has focused on industries such as renewable energy, semiconductor manufacturing, and other sectors that contribute to sustainable economic development.
In addition to Binh Duong, the VSIP Industrial Park, home to numerous large-scale projects, is also located in Bac Ninh, Hai Phong, Hai Duong, Binh Dinh, Quang Ngai, and Nghe An. Source: VNA
Along with assisting local firms in settling difficulties, especially in real estate projects, Binh Duong has been improving its infrastructure, providing easier access to financing, supporting small- and medium-sized enterprises, and helping businesses stabilise production and expand into new markets. The province has also been accelerating public investment disbursement, completing major infrastructure projects to create jobs, stimulate consumption, and enhance regional economic connections.
The Cai Mep – Thi Vai deep-water port in Phu My Town, Ba Ria – Vung Tau province, is a key factor in attracting FDI to the Southeast region, which covers Ho Chi Minh City, Dong Nai, Ba Ria – Vung Tau, Binh Duong, Binh Phuoc, and Tay Ninh. Photo: VNA
Furthermore, Binh Duong is leading the way with smart governance. Six of its industrial zones have adopted the smart management platform of Becamex IDC Corporation, utilising automation, artificial intelligence (AI), the Internet of Things (IoT), and 5G networks to help businesses collect real-time data, automate processes, optimise resources, and minimise environmental impact.
As of November 30, Vietnam’s total newly registered, adjusted, and contributed capital from foreign investors had reached nearly 31.4 billion USD, a slight increase of 1% compared to the same period in 2023. The disbursed capital from foreign-invested projects was estimated at approximately 21.68 billion USD, an increase of 7.1% compared to the same period last year.
The application of Artificial Intelligence (AI), the Internet of Things (IoT), and 5G networks helps businesses optimize their resources. Illustrative photo. Source: VNA
The Ho Chi Minh City High-Tech Park Training Centre (SHTP-Training) is enhancing its training programmes to supply skilled labour for the high-tech industry. Photo: VNA
To a stable investment destination
Vietnam currently has 41,720 valid FDI projects, with total registered capital of 496.7 billion USD. The cumulative realised capital of these projects is estimated at around 318.9 billion USD, equivalent to 64.2% of the total registered capital.
To date, 147 countries and territories have invested in Vietnam, with the Republic of Korea leading the pack with more than 89.1 billion USD (17.9% of total registered capital), followed by Singapore with nearly 82.3 billion USD (16.6%), and Japan, Taiwan (China), and Hong Kong (China).
During his official visit to the Republic of Korea in July 2024, Prime Minister Pham Minh Chinh receives Lee Jae-yong, Executive Chairman of Samsung Electronics in Seoul. Photo: VNA
Customers experience Samsung products in Vietnam. Source: Samsung
By sector, 19 out of 21 industries in Vietnam’s economic system have attracted FDI, with the manufacturing and processing industry receiving the largest share, amounting to over 299.8 billion USD, or 61.2% of total foreign investment. Real estate business follows with more than 72.5 billion USD (14.6%), and the power generation and distribution sector received nearly 41.7 billion USD (8.4%).
The production line for litchi products for export at Global Food JSC in Phuong Son commune, Luc Ngan district, Bac Giang province. Photo: VNA
Vietnamese “thieu” litchi is becoming increasingly familiar to consumers in Thailand. Photo: VNA
According to the MPI’s Foreign Investment Agency, in the first 11 months of 2024, FDI registration increased by 1% compared to the same period last year. Both the number of new projects and underway projects with added capital increased, while November 2024 saw significant FDI inflows of nearly 4.12 billion USD, accounting for 13.1% of the total investment for the first 11 months.
FDI has been concentrated in regions with advantageous conditions, such as good infrastructure, stable human resources, ongoing administrative reforms, and active investment promotion efforts. These include Bac Ninh, Quang Ninh, Ho Chi Minh City, Hai Phong, Hanoi, Binh Duong, Ba Ria – Vung Tau, Dong Nai, Nghe An, and Bac Giang. These 10 localities alone accounted for 79.6% of the new projects and 69.4% of the total FDI capital in Vietnam in the first 11 months of 2024.
The majority of largest investors in Vietnam have traditionally come from Asia. The five leading investors – Singapore, the Republic of Korea, China, Hong Kong (China), and Japan – together accounted for nearly 73% of the new projects and over 77% of the total registered capital in the country.
Investment experts asserted that the increase in FDI is a direct response to a growing domestic market, a key bright spot in the economy. This trend is a positive sign for the coming year, offering opportunities for continued investment inflows.
“The Government is committed to perfecting institutions, improving the investment environment, and addressing existing issues, while accelerating investment in strategic infrastructure projects. In particular, Vietnam is determined to attract investment in high-tech industries.”
Minister of Planning and Investment Nguyen Chi Dung
To further boost FDI attraction, Vietnam has been creating a business environment with multiple incentives for high-tech enterprises, including special investment procedures, Dung added.
On March 19, 2024, in Hanoi, Prime Minister Pham Minh Chinh attends the 2024 Vietnam Business Forum (VBF). Photo: VNA
Photo series: Prime Minister Pham Minh Chinh meets with Tim Cook, CEO of Apple Inc in Hanoi in April 2024. Source: VNA
In December 2024, Prime Minister Pham Minh Chinh meets with Jensen Huang, President and CEO of NVIDIA (US), and witnesses the signing ceremony of the cooperation agreement between the Vietnamese Government and NVIDIA. Photo series: VNA
Victor Ngo, CEO of UOB Vietnam, noted that Vietnam is rapidly becoming one of the most attractive FDI destinations. The Foreign Investment Agency predicted that by the end of 2024, FDI inflows will continue to grow steadily.
The Vietnamese Government has introduced a new decree to establish and manage the Investment Support Fund, which aims to directly assist companies in areas such as training, human resources development, investment in fixed assets, and the production of high-tech products, he noted, holding that the move is expected to be a breakthrough in stabilising existing FDI and providing a favourable corridor for attracting future investment./.
