Vietnam Foreign Investment presents compelling foreign investment opportunities due to its— stable, rapidly developing and high-growth environment. The country’s positive business conditions including- a stable political system, consistent economic growth, a young and skilled workforce and favorable proximity to emerging economies, make it an attractive destination for international business and foreign investment.
The Ministry of Planning and Investment reported that Vietnam’s FDI stock stood at $274 billion at the end of 2022 which reflects the country’s appeal to foreign investors. The government offers business-friendly policies and investment incentives and different regions in Vietnam provide favorable environments for investment including various industrial parks and zones.
Within the Vietnam Foreign Investment sector – the manufacturing and processing industry, electricity production, wholesale and retail, science and technology and other sectors have received significant foreign investment— with countries like Singapore, South Korea, China and Japan being the largest investors.
Key areas drawing strong foreign interest include manufacturing, infrastructure, high-tech, and renewable energy. Vietnam’s manufacturing sector accounts for over 70% of total registered FDI capital over the past 5 years. Major export industries like textiles, footwear, furniture, and electronics benefit from tax incentives, affordable labor, and proximity to global supply chains.
Infrastructure is another priority area, with massive demand for transport upgrades, power grids, urban development and telecoms. The government aims to facilitate FDI in roads, seaports, airports, utilities and smart cities through public-private partnerships.
High-tech, software, fintech, AI and IoT are also growth sectors as- Vietnam moves up the value chain. Over 40% of Vietnam’s 100 million population is under 30 years old, tech-savvy, and English literate – an ideal talent pool. The startup ecosystem is rapidly evolving with strong government support.
Within the Vietnam Foreign Investment sector- the renewable energy likewise offers immense potential. Vietnam has set ambitious sustainable power targets, aiming to expand solar and wind capacity from 16GW currently to over 50GW by 2045. Lucrative feed-in tariffs and tax breaks are attracting foreign companies to develop projects.
