Vietnam is expected to face several challenges that may affect its ability to attract new foreign direct investment (FDI) in the near future, as the recent decline in newly registered FDI over the first five months of this year signals a trend worth close monitoring Surge in additional capital and major projects According to data from the General Statistics Office, total foreign investment capital registered in Vietnam during the first five months of 2025—including newly registered capital, capital hikes by existing projects, and merger and acquisition deals by foreign investors—reached US$18.39 billion, a sharp increase of 51.2% compared to the same period last year. Notably, newly registered capital totaled US$7.02 billion, down by 13.2% year-on-year. Of this amount, the bulk was concentrated in the manufacturing and processing industry (US$4.17 billion, accounting for 59.4% of the total) and real estate activities (US$2.03 billion, or 28.9%), with the remaining sectors receiving US$820.1 million, or 11.7%. The decline in newly registered capital was offset by a surge in additional investment capital, as 674 active projects registered for additional funding totaling US$8.52 billion, 3.4 times higher than in the same period last year. Portfolio investment by foreign investors also increased by a significant 82.9% […]
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