Vietnam’s Top Investors and FDI Beneficiaries – January to November 2024

Vietnam’s top investors in 2024 (January-November period) were Singapore with US$9.14 billion, followed by South Korea, China, Hong Kong, and Japan, dominating 77 percent of total investments.

Vietnam continues to strengthen its position as a top destination for foreign direct investment (FDI), attracting significant inflows between January and November 2024. The latest data highlights Singapore as the leader in terms of registered capital, with China taking the top spot for the number of new projects. These trends underline Vietnam’s growing appeal for both capital-intensive ventures and smaller, agile projects.

Singapore secures top spot with record investment

Singapore stood out as Vietnam’s largest foreign investor in the 11-month period, with registered capital reaching US$9.14 billion. This impressive figure accounted for 29.1 percent of Vietnam’s total FDI and represented a 53.7 percent year-on-year surge. Notably, the capital influx was driven by a mix of new investments (63.3 percent) and additional funding for operational projects (27.3 percent), reflecting Singapore’s confidence in Vietnam’s long-term growth potential.

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The city-state’s investments spanned high-value industries, including electronics, energy, and technology-driven manufacturing. The rise in Singapore’s investment also highlights the effectiveness of Vietnam’s bilateral trade agreements and streamlined regulatory frameworks, which continue to attract capital from one of Southeast Asia’s wealthiest nations.

South Korea and China: Key regional players

South Korea ranked as Vietnam’s second-largest investor, contributing US$3.89 billion, or 12.4 percent of total FDI, although this represented a 9 percent decline year-on-year. Despite the drop, South Korean firms maintained a robust presence in Vietnam, particularly in the electronics and manufacturing sectors.

Mainland China, ranked third in terms of registered capital, was the leader in newly-licensed projects, accounting for 28.3 percent of the total. This dominance reflects China’s strategy of capitalizing on Vietnam’s geographic proximity, favorable labor costs, and integration into global supply chains.

Hong Kong and Japan completed the top five investor list, showcasing the dominance of Asian countries, which collectively accounted for 77 percent of total registered FDI and 73 percent of new projects during the period.

Total FDI composition and trends

Vietnam’s total registered FDI for the 11 months reached US$31.4 billion, marking a 1 percent year-on-year increase. The breakdown of these investments demonstrates the diverse strategies of foreign investors:

• US$17.39 billion in newly registered capital (+0.7 percent) across 3,035 projects (+1.6 percent).
• US$9.93 billion in additional funding for 1,350 operational projects (+40.7 percent).
• US$4.06 billion from 3,029 capital contributions or stake acquisitions, reflecting a 39.7 percent decline.

Key investment sectors

Vietnam’s manufacturing and processing sectors continued to dominate FDI inflows, securing US$20.2 billion or 64.4 percent of the total FDI. While this marked an 8.7 percent decrease year-on-year, the sector remains a cornerstone of Vietnam’s economy, attracting investments in high-tech manufacturing, semiconductors, and electronic components.

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Real estate emerged as a high-growth sector, attracting US$5.63 billion, an 89.1 percent surge, as foreign investors capitalized on Vietnam’s expanding urban centers and rising demand for industrial zones. Other notable sectors included wholesale and retail trade (US$1.37 billion) and electricity production and distribution (US$1.12 billion).

Regional FDI beneficiaries

Several provinces stood out as major FDI recipients during this period:

• Bac Ninh Province led with US$5.04 billion, a threefold year-on-year increase, driven by large-scale high-tech projects such as those by Amkor Technology Inc.
• Quang Ninh Province ranked second with US$2.29 billion, accounting for 7.3 percent of total FDI, though this represented a 26.3 percent decline.
• Ho Chi Minh City followed closely with US$2.28 billion, while Hai Phong, Hanoi, and Binh Duong also attracted significant inflows.

High-profile projects

The period witnessed the approval and expansion of several landmark projects:

• Amkor Technology Inc. in Bac Ninh secured an additional US$1.07 billion, increasing its total investment to US$1.6 billion for advanced semiconductor manufacturing.
• LG Display in Hai Phong received an additional US$1 billion, bringing its cumulative investment to US$5.65 billion, solidifying Vietnam’s role in the global electronics supply chain.

Disbursed FDI and long-term metrics

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Disbursed FDI was estimated at US$21.68 billion, reflecting a 7.1 percent year-on-year increase. As of November 30, 2024, Vietnam had 41,720 valid FDI projects with total registered capital of US$496.7 billion. Of this, US$318.9 billion (64.2 percent) had been disbursed, demonstrating steady progress in converting commitments into tangible economic contributions.

Strategic implications and outlook

Vietnam’s FDI performance from January to November 2024 underscores its status as a competitive investment destination. With significant inflows into high-tech manufacturing, real estate, and energy, the country is poised to play a pivotal role in global supply chains. Strategic partnerships with leading investors, particularly from Singapore, South Korea, and China, further highlight Vietnam’s importance in the Asia-Pacific region.

Looking ahead, Vietnam’s emphasis on infrastructure development, regulatory reforms, and regional integration through trade agreements is expected to sustain its upward trajectory. As global firms increasingly prioritize diversification and supply chain resilience, Vietnam is likely to remain a magnet for FDI across key industries.

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