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Foreign investment in Vietnam by country in recent years
Foreign Investment in Vietnam by Country in Recent Years: Trends, Growth, and Market Insights
Foreign direct investment (FDI) continues to play a crucial role in Vietnam’s economic success story. As the country expands its industrial capabilities, modernizes infrastructure, and opens more sectors to global investors, understanding foreign investment in Vietnam by country is vital for businesses, policymakers, and investors. In recent years, Vietnam has emerged as one of the top destinations in Asia for manufacturing, digital services, and consumer market expansion.
This article analyzes how specific countries contribute to Vietnam’s investment landscape, which sectors attract the most capital, and what future opportunities look like leading into 2026 and beyond.
⭐ Quick Overview: Key Contributors of Foreign Investment in Vietnam
In recent years, the largest contributors of FDI into Vietnam have consistently included:
- South Korea
- Singapore
- Japan
- China
- Hong Kong
- Taiwan
- United States
- European Union (especially Netherlands, France, and Germany)
These economies dominate because of Vietnam’s:
- Strategic location in Southeast Asia
- Competitive labor and operation costs
- Stable political environment
- Free trade agreements
- Strong export supply chains
Understanding foreign investment in Vietnam by country helps identify future business opportunities.
Why Vietnam is a Top Investment Destination
Vietnam has become a magnet for foreign investors due to a combination of growth and reform.
1️⃣ Competitive Manufacturing Hub
Global technology and electronics manufacturers increasingly choose Vietnam over high-cost markets.
2️⃣ Trade Liberalization Advantage
Vietnam participates in many major agreements such as CPTPP and EVFTA, offering tariff advantages.
3️⃣ Young and Skilled Workforce
A large labor pool boosts productivity across industries.
4️⃣ Government Support and Tax Incentives
Investment incentives are provided for:
- High-tech industries
- Export and manufacturing zones
- Renewable energy
- Education and health care
➡ Result: More foreign investment inflow every year.
Analysis of Foreign Investment in Vietnam by Country
Below is a detailed look at investment trends from the top contributing countries.
- South Korea – The Largest Foreign Investor in Vietnam
South Korea leads foreign investment in Vietnam by country thanks to major corporations expanding rapidly.
Key areas of investment:
| Sector | Major Contributions |
| Electronics | Smartphone and component manufacturing |
| Retail & food | Brands serving Vietnam’s young market |
| Construction | Urban development projects |
| Banking | Financial technology and digital payment growth |
Korean giants such as major electronics and retail companies have invested billions of dollars into Vietnam’s industrial zones. Strong cultural exchange and free trade cooperation also boost this relationship.
- Singapore – Investment Through Real Estate and Finance
Singapore consistently ranks among the top FDI partners.
Main investment areas:
- Commercial and residential real estate
- Industrial parks and smart cities
- Logistics and port services
- Green and sustainable development projects
- Financial services
Singapore’s business expertise supports infrastructure transformation, especially in Ho Chi Minh City, Binh Duong, and Da Nang.
- Japan – Infrastructure and Manufacturing Powerhouse
Japan is a major investor in sectors that require advanced technology and high-quality standards.
Key investments include:
- Transport infrastructure (roads, railways, airports)
- Automobile and machinery manufacturing
- High-end electronics
- Renewable energy and wastewater treatment
Japan’s approach emphasizes long-term stability, workforce training, and technological improvement.
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China – Expanding Industrial and Consumer Market Investment
China’s role in foreign investment in Vietnam by country has grown rapidly due to:
- Shifting supply chains to avoid high costs elsewhere
- Manufacturing relocation strategies
- Rising demand for Vietnamese-produced goods
Main areas of Chinese investment:
- Garments and footwear factories
- Electronics assembly
- Raw materials and industrial supply chain
- E-commerce and digital services
Competition and cooperation occur side-by-side between the two economies.
- Hong Kong – Strong Investment in Finance and Real Estate
Hong Kong investors focus heavily on:
- Financial services
- Real estate development
- Manufacturing through offshore entities
Vietnam’s open capital market reforms make this partnership even more attractive.
- Taiwan – Electronics and Component Manufacturing
Taiwan continues to be a strong investor, especially in:
- Semiconductors and electronics
- Plastic and rubber manufacturing
- Textile production
- Industrial parks in the north
This investment strengthens Vietnam’s position in the global supply chain for consumer electronics.
- United States – High-Tech and Service Sector Expansion
The United States plays a major role in:
| Sector | Key Focus |
| Technology | Software outsourcing, AI, semiconductors |
| Renewable energy | Wind and solar power development |
| Food & agriculture | High-quality food production |
| Pharma and medical supplies | Growing health demands |
Growing strategic cooperation between the two nations creates long-term economic opportunities.
- European Union – Sustainable Growth and Industry Innovation
European investors emphasize high standards in:
- Green energy and environmental technology
- High-end manufacturing
- Transport innovations
- Consumer goods and luxury retail
Countries including the Netherlands, Germany, France, and Sweden have major brand presence in Vietnam.
➡ The EU–Vietnam Free Trade Agreement encourages continued growth.
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Sector Analysis: Where Countries Invest Most (foreign investment in Vietnam by country)
To understand foreign investment in Vietnam by country, it is essential to map countries to sectors where they dominate.
| Country | Strongest Sectors |
| South Korea | Electronics, retail, finance |
| Japan | Infrastructure, automobiles, energy |
| Singapore | Real estate, logistics, finance |
| China | Industrial manufacturing, e-commerce |
| Hong Kong | Real estate, consumer goods |
| Taiwan | Electronics components |
| USA | Technology, renewable energy |
| EU Nations | Sustainable and high-quality manufacturing |
These investments align with Vietnam’s national development goals.
Regional Highlights: Where Investments Flow Inside Vietnam
Investment distribution varies geographically:
| Region | Characteristics | Investors Drawn |
| Northern Vietnam | Industrial hubs & border trade | China, Japan, Korea, Taiwan |
| Southern Vietnam | Financial & commercial center | Singapore, USA, EU |
| Central Vietnam | Tourism & logistics growth | Japan, Singapore |
➡ Industrial parks in provinces like Bac Ninh, Binh Duong, Hai Phong, and Dong Nai attract the largest capital.
Key Drivers of Foreign Investment Growth
FDI continues to rise due to:
- Political stability
- Strong supply chain infrastructure
- Transparent investment laws
- Large domestic market demand
- Favorable corporate tax policies
- Training programs improving workforce skills
Vietnam’s digital transformation agenda further increases confidence among investors.
Challenges for Foreign Investors (foreign investment in Vietnam by country)
While growth is strong, investors must navigate:
❌ Bureaucratic procedures
Business registration and permitting may require guidance.
❌ Infrastructure gaps in rural areas
Although improving rapidly, logistics and transport can still create delays.
❌ Workforce competition
High demand for skilled labor can increase salary pressures.
❌ Intellectual property protection
Strengthened regulations are still developing in some industries.
Proper planning and local partnerships mitigate these risks.
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Future Outlook: Which Country Will Lead in the Next 5 Years?
Based on recent trends:
- South Korea and Singapore will remain top investors.
- United States investment may rise due to technology cooperation and supply chain diversification.
- Japan and EU nations will continue infrastructure and sustainable energy projects.
- China may expand more aggressively as industries shift.
Vietnam is expected to strengthen its position as a global manufacturing hub, especially in high-tech sectors.
Opportunities for New Investors (foreign investment in vietnam by country)
Looking ahead, sectors likely to attract more foreign investment in Vietnam by country include:
| High-Opportunity Sector | Why It Will Grow |
| Renewable energy | National sustainability goals |
| High-tech manufacturing | Semiconductor and EV development |
| Healthcare & biotech | Aging population and medical demand |
| Smart real estate | Urban development and smart cities |
| Digital services & fintech | Rapid mobile penetration |
| Education and skill training | Workforce upskilling needs |
Entrepreneurs and corporations planning a long-term strategy will benefit the most.
Frequently Asked Questions (FAQ)
❓ Why is South Korea the top investor in Vietnam?
Because of large-scale manufacturing, electronics, finance, and retail investments offering strong returns.
❓ Which region of Vietnam receives the highest FDI?
Northern and Southern industrial regions receive the most capital due to established supply chains.
❓ What sectors attract the most foreign investment?
Electronics, real estate, energy, logistics, technology, and consumer services.
❓ How does Vietnam support foreign investors?
Through tax incentives, FTAs, industrial zones, and digital transformation initiatives.
Conclusion
The analysis of foreign investment in Vietnam by country shows a dynamic and diverse business environment powered by global partnerships. South Korea, Singapore, Japan, China, the United States, and European investors all contribute significantly to Vietnam’s economic transformation.
As Vietnam continues to modernize and become a high-tech industrial leader, foreign investors will find expanding opportunities—especially in clean energy, digital economy sectors, and advanced manufacturing. With strong government policies, a skilled workforce, and a growing consumer market, Vietnam is positioned to remain a top investment destination in Asia for many years ahead.
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