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Vietnam FDI surge points to changing investor priorities

Vietnam FDI surge points to changing investor priorities

Foreign direct investment (FDI) commitments in Vietnam surged 76.4% in the first nine months of 2026, reflecting strong investor interest, but the bigger question is what is driving the inflows and whether the country can turn them into higher-value growth.

Vietnam attracted US$50.36 billion in registered foreign direct investment between Jan. – Sept. 2026, representing a year-on-year rise of 76.4%, according to the National Statistics Office.

The headline figure is striking. But behind the surge is a more complex story: investors are not simply putting more money into Vietnam; their priorities are also changing as global manufacturers restructure supply chains and competition for new investment intensifies across Southeast Asia.

Of the total registered FDI, newly registered capital reached US$29.24 billion from 3,108 projects, with capital more than doubling from the same period last year. Manufacturing and processing remained the largest recipient, accounting for US$13.38 billion, or 45.8% of newly registered capital.

Transport and storage followed with US$5.14 billion, while additional capital injected into existing projects reached US$14.15 billion, up 25.1%.

The composition of the flows suggests that Vietnam’s attraction to foreign investors is increasingly linked to its role in production and supply-chain networks rather than simply its traditional advantage of relatively low costs.

Supply-chain diversification is a key driver

One of the clearest explanations comes from the ongoing restructuring of global supply chains.

At the Vietnam Industrial Property Forum 2026 held in Ho Chi Minh City in September 2026, Trang Le, country head and head of Research and Consulting at JLL Vietnam, said international companies were continuing to diversify their supply chains to reduce concentration risks and strengthen resilience.

This trend is creating additional demand for manufacturing and logistics facilities in Vietnam, she said, with the country's northern region increasingly attracting technology-intensive investment and higher-value supply chains, while the south has developed stronger advantages in logistics, connectivity and access to the domestic market.

The shift is also changing the type of industries looking at Vietnam. Demand is expanding beyond traditional manufacturing to electronics, electrical equipment, high technology, automobiles, data centres, pharmaceuticals, research and development and modern logistics.

That helps explain why manufacturing and processing accounted for more than half of newly registered and additional FDI combined during the first nine months.

Vietnam's investment environment is also changing

Supply-chain shifts alone, however, do not explain the broader investment momentum. Assoc. Prof. Dr Ho Sy Hung, president of the Vietnam Chamber of Commerce and Industry (VCCI), said recent institutional reforms had opened up greater room for businesses and improved the business environment.

Speaking at the Vietnam New Economy Forum 2026 in Hanoi on October 3, he highlighted reforms under the 2025 Investment Law, including the expansion of a “green lane” mechanism and a shift from pre-inspection to post-inspection, which he said had significantly shortened the time needed to prepare investment projects.

This point is particularly relevant to FDI because investors consider not only where production costs are competitive, but also how quickly a project can obtain approvals, secure infrastructure and begin operations.

JLL Vietnam leader Trang Le has similarly identified implementation speed, infrastructure and land availability, and the quality of the workforce as three important factors influencing investors’ decisions.

In other words, Vietnam’s competitiveness is gradually moving beyond the question of whether the country is cheaper than other destinations. Investors are increasingly asking whether Vietnam can provide the infrastructure, skilled labour and business environment required for sophisticated production.

A strong headline figure, but not the whole story

There is also an important distinction between registered and realised FDI. While registered FDI jumped 76.4%, realised FDI reached an estimated US$21.07 billion in the first nine months, up 12.1% year on year. The figure was nevertheless the highest for the first nine months in five years.

Manufacturing and processing accounted for US$17.4 billion, or 82.6% of realised FDI, indicating that the bulk of foreign capital actually being deployed is closely tied to productive activities. This gap between commitments and realised investment matters.

A surge in registered capital signals strong investor interest and creates a pipeline of potential projects. But the economic impact ultimately depends on whether those commitments are implemented, how quickly projects become operational and how deeply foreign-invested companies connect with the domestic economy.

That may be the next challenge for Vietnam. The country has benefited from the global diversification of production, but competition is becoming tougher. At the Vietnam Industrial Property Forum, Trang Le noted that Vietnam’s share of regional manufacturing FDI had risen sharply during the 2020-2021 period but has since fallen back below 5%, with Indonesia and Thailand strengthening their positions.

This suggests that strong FDI growth in Vietnam should not be interpreted as a guarantee of continued dominance in the regional investment race. Instead, the latest figures may mark a new stage in the competition, one in which the ability to absorb and retain high-value investment becomes as important as the ability to attract it.

For Vietnam, that means improving the speed and predictability of investment procedures, strengthening infrastructure and logistics, developing a higher-skilled workforce and building stronger links between foreign-invested companies and domestic suppliers.

The 76.4% rise in registered FDI therefore tells only part of the story. The more important question is whether the latest wave of foreign investment can help Vietnam move further up global value chains, from being a competitive production base to becoming a deeper ecosystem for technology, innovation and higher-value manufacturing.


Source: VOV

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PM orders urgent measures to ensure power supply for 2027–2030

PM orders urgent measures to ensure power supply for 2027–2030

The PM stressed that national energy security and an adequate electricity supply are fundamental to achieving socio-economic development goals and constitute a particularly important political task for the entire political system.

Hanoi (VNA) – Prime Minister Le Minh Hung has ordered ministries, localities and relevant agencies to urgently implement measures to ensure sufficient electricity supplies from 2027 to 2030 and beyond, stressing that power shortages must not occur under any circumstances.

The Government Office issued Official Dispatch No. 10790/VPCP-CN on October 22, conveying the PM’s instructions to the Minister of Industry and Trade, secretaries of provincial and municipal Party committees, and chairpersons of provincial and municipal People’s Committees.

The PM stressed that national energy security and an adequate electricity supply are fundamental to achieving socio-economic development goals and constitute a particularly important political task for the entire political system.

In the immediate term, the ministry is requested to direct and urge ministries, agencies and localities to expand self-produced and self-consumed rooftop solar power at households, offices, public buildings and production and business establishments. The installation of battery energy storage systems (BESS) should also be encouraged to reduce peak-hour demand and increase on-site power self-sufficiency.

The ministry must propose targets for rooftop solar power development in each locality, particularly in northern provinces, specifying installation numbers and deadlines for operation. The proposal must be completed before October 30, with implementation results serving as an important criterion for assessing the performance of ministry and local leaders.

Besides, it must guide and urge localities to introduce support policies for households installing self-produced and self-consumed solar systems in this December. Investors are required to ensure that the Na Duong 2 and Quang Trach I thermal power plants are completed and begin commercial operation in 2026.

The ministry must accelerate eligible concentrated solar power projects, floating solar installations on hydropower reservoirs and associated grid infrastructure included in the revised Power Development Plan VIII. Priority should be given to projects in northern areas, including the Lai Chau and Son La hydropower reservoirs. Vietnam Electricity (EVN) is tasked with studying and investing in BESS at substations and other suitable locations, with the systems scheduled to operate in 2027.

By December, the ministry, in coordination with the Ministry of Finance, the Ministry of Justice and relevant agencies, must develop mechanisms and guidelines to accelerate energy storage development, particularly rooftop solar combined with BESS in industrial parks and clusters in northern provinces.

The PM also called for stronger electricity-saving measures, requiring annual savings of at least 3% of national power consumption and at least 10% during peak hot-weather months from April to July. Demand management and load shifting must help reduce peak-hour demand by at least 3,000 MW, while cutting power losses across the system to below 6%.

For 2028–2030 and subsequent years, the ministry must work with the Ministry of Finance and major state-owned groups, including EVN, the Vietnam National Industry – Energy Group (Petrovietnam) and the Vietnam National Coal and Mineral Industries Group, to review power generation and transmission projects and assign clear responsibilities for implementation.

The ministry must identify project delays, financing difficulties and obstacles requiring resolution. If necessary, it should propose using State budget funds for urgent power projects and report to the PM before October 30, 2026.

The PM warned against lax oversight after investment licences are issued and called for strict action against investors that delay projects or violate regulations. The ministry will bear responsibility if planned projects are not implemented or fail to enter operation on schedule. It must also take final responsibility if electricity shortages occur under any circumstances.


Top Vietnamese leader holds talks with European Council President

Top Vietnamese leader holds talks with European Council President

At their talks in Brussels on October 22, the two leaders agreed to explore and promote maritime economic cooperation as a new pillar of bilateral relations.

Talks between General Secretary of the Communist Party of Vietnam Central Committee and President To Lam and European Council President António Costa was held in Brussels on October 22 as part of the former's official visit to the European Union (EU).

At the talks, President António Costa, as cited by the Vietnam News Agency, warmly welcomed General Secretary and President To Lam and the high-ranking Vietnamese delegation on their official visit to the EU. He fondly recalled his deep impressions of Vietnam and its people, as well as the warm and cordial reception extended by the Vietnamese side during his visit in early January this year.

The two leaders’ early reunion reflects the increasingly deep political trust between Vietnam and the EU, he stressed.

Vietnam is an important partner of the EU in the Indo-Pacific region, he said, expressing confidence that both sides would continue to build on their foundation of political trust and positive cooperation outcomes to deepen their Comprehensive Strategic Partnership, bringing tangible benefits to both sides.

Expressing his pleasure at visiting the EU for the first time in his new capacity, General Secretary and President To Lam, as quoted by the news agency also, spoke highly of the role played by the European Council and President António Costa personally in shaping the EU’s strategic priorities, promoting unity and consensus among member states, strengthening the bloc’s self-reliance and resilience, and contributing to peace, stability, cooperation and development in the region and around the world.

Vietnam regards the EU as one of its top-priority partners, with substantial shared interests and long-term cooperation potential. It wishes to translate commitments into concrete outcomes and practical cooperation projects that will support development and improve the lives of people on both sides, the Vietnamese leader noted.

General Secretary and President To Lam and President António Costa welcomed the positive progress in Vietnam-EU relations after more than 36 years of diplomatic ties, particularly following the elevation of bilateral relations to a Comprehensive Strategic Partnership in January 2026, the news agency reported.

Amid complex regional and global developments, the two leaders agreed that Vietnam and the EU should strengthen dialogue, contacts and exchanges at all levels, particularly at the high level, to consolidate political trust and enhance mutual understanding. They also agreed to improve cooperation effectiveness and create breakthroughs by expanding collaboration into new areas aligned with the development priorities of both sides, including green transition, innovation, strategic infrastructure and the circular economy.

Sharing a vision for developing a blue economy, protecting the oceans and ensuring maritime security, the two sides agreed to explore and promote maritime economic cooperation as a new pillar of bilateral relations.

General Secretary and President To Lam called for deeper economic, trade and investment ties, and for the two sides to continue fully capitalizing on the potential and advantages offered by the EU-Vietnam Free Trade Agreement (EVFTA). He thanked the EU for recognizing Vietnam’s efforts and removing the country from Annex I of the list of non-cooperative jurisdictions for tax purposes. He also called on both sides to work closely together to swiftly resolve longstanding outstanding issues, including the removal of the “yellow card” warning on Vietnamese seafood over illegal, unreported and unregulated (IUU) fishing, and the early ratification of the EU-Vietnam Investment Protection Agreement (EVIPA).

President António Costa affirmed the EU’s desire to further deepen substantive cooperation with Vietnam by effectively leveraging EU programs and initiatives, such as the Global Gateway, to promote high-quality investment, develop sustainable connectivity infrastructure and advance the energy transition.

The EU will continue promoting cooperation, sharing experience and building capacity in maritime security and safety, cybersecurity and crisis management, as well as coordinating in responding to non-traditional challenges, particularly climate change and emerging technological challenges, including artificial intelligence, in line with the needs, priorities and shared interests of both sides, he said.

On this occasion, the two leaders also held in-depth and wide-ranging discussions on regional and international issues. They agreed to strengthen exchanges, consultations and coordination at multilateral forums; uphold multilateralism, the United Nations Charter and international law; and further promote ASEAN-EU relations, thereby making positive contributions to maintaining peace, stability, cooperation and development in the Indo-Pacific.

President António Costa emphasized that the EU attaches importance to advancing relations with ASEAN, with Vietnam as one of its leading partners, as the EU and ASEAN work towards upgrading their ties to a Comprehensive Strategic Partnership in 2027, when they will mark the 50th anniversary of their relations.

He reaffirmed the EU’s continued support for ASEAN centrality and for ASEAN’s and Vietnam’s positions on promoting the peaceful settlement of disputes in accordance with international law, particularly the 1982 United Nations Convention on the Law of the Sea (UNCLOS), ensuring peace, stability, security, safety and freedom of navigation and overflight in the seas and oceans.


Institutional reforms provide boost for business growth

Institutional reforms provide boost for business growth

Institutional reform should go beyond reducing red tape to build business confidence and encourage companies to invest and expand operations.

Hanoi (VNA) - Cutting administrative procedures, resolving legal bottlenecks and unlocking resources are key solutions to improve the business environment, give companies greater confidence to invest and strengthen their competitiveness, helping drive sustainable growth.

For businesses, the quality of the business environment is reflected in the time required to complete administrative procedures, compliance costs, access to capital and land, and policy stability. Institutional reform, therefore, should go beyond reducing red tape to build business confidence and encourage companies to invest and expand operations.

Nguyen Xuan Tho, Deputy Director of the Agency for Private Enterprise and Collective Economy Development under the Ministry of Finance, said the ministry has proactively reviewed practical conditions and advised the Government to issue Resolution No. 02/NQ-CP on key tasks and solutions to improve the business environment and enhance national competitiveness in 2026, with seven priority groups of measures and specific responsibilities assigned to ministries, sectors and localities.

The measures focus on improving the institutional framework, reviewing conditional business lines, streamlining administrative procedures, unlocking resources and supporting businesses. The goal is not merely to refine regulations, but to remove barriers directly affecting investment, production and business operations.

In the first nine months of 2026, efforts to review and improve the legal framework were stepped up. At the first session of the 16th National Assembly, lawmakers passed nine laws and 31 resolutions to promptly translate development policies into law.

The Ministry of Finance also advised on the refinement of various policies on investment, corporate income tax, personal income tax and tax administration, aiming to address shortcomings identified in practice.

One notable development has been the expansion of financial support for businesses. In the nine-month period, the ministry advised on and implemented tax, fee and charge exemptions, reductions and payment extensions worth a total of about 245.6 trillion VND (9.5 billion USD). These measures have helped ease cash-flow pressures, sustain business operations and free up resources for investment.

Another area of reform is strengthening dialogue with businesses and addressing their concerns. Tho said that, to date, ministries and agencies had responded to and fully resolved 146 of the 202 groups of business recommendations.

From the business community’s perspective, the gap between policy and implementation remains a major bottleneck in the business environment.

Ho Sy Hung, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said businesses could have different experiences with the same regulation depending on the locality.

Decisive implementation can help companies benefit from policies sooner, while delays elsewhere may cause them to miss investment and business opportunities, he elaborated.

In July 2026, VCCI compiled nearly 900 specific concerns raised by businesses into 53 groups of issues across 10 sectors. The feedback showed that businesses need not only individual administrative procedures to be resolved, but also a stable, consistent and predictable policy environment, Hung said.

Hung said that while the previous phase focused on breakthroughs in institutional reform, the next should place greater emphasis on breakthroughs in implementation.

Reform should therefore be measured not simply by the number of amended regulations or procedures cut, but by whether policies are implemented consistently, processing times are genuinely shortened and business costs are reduced, he added.

To narrow this gap, Tho suggested ministries, sectors and localities improve the quality of lawmaking, resolutely remove barriers to market access, further simplify administrative procedures, make processes transparent and standardise how business recommendations are received and addressed.

Digital transformation in public service delivery should go hand in hand with reducing unnecessary face-to-face interactions, curbing informal costs and strengthening dialogue to resolve problems at an early stage, he said.

Tho also proposed reforming state management by shifting from pre-inspection to post-inspection, as appropriate for each sector, based on clear standards and technical regulations and stronger risk-based oversight.

Business environment reforms should also be aligned with the goal of improving growth quality. Nguyen Duc Hien, deputy head of the Party Central Committee’s Commission for Policy and Strategy, stressed that in the new phase, promoting the private sector, harnessing the potential of all economic sectors, and advancing science and technology, innovation and digital transformation are key foundations for achieving the target of double-digit economic growth.

Hien said traditional growth drivers need to be revitalised to meet new development requirements. For exports, the focus should go beyond increasing turnover to raising value added, boosting the share of value created domestically and setting appropriate development directions for each industry group.

Sectors with the potential to drive growth and generate spillover effects, including research and development (R&D), tourism, logistics, energy, and finance and banking, need to be promoted.

Meanwhile, established industries such as electronics, digital technology, textiles and garments, footwear, and food processing should continue to upgrade product quality, strengthen technological capabilities and increase domestic value added, Hien suggested.​

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