New foreign investment approvals in Vietnam declined slightly in 2024. Understanding what is behind the drop is essential for finding coping solutions. Reasons for the fall Though Vietnam made positive macroeconomic achievements in 2024, such as stronger-than-expected GDP growth, higher per capita income, stronger productivity, tamed inflation, and robust trade, the foreign investment picture was not as good as hoped. According to the General Statistics Office, fresh foreign investment approvals in Vietnam, including new registrations, adjustments, and contributions or share purchases, amounted to US$38.23 billion last year, a 3% decline against 2023. This contrasts with the 23% increase in the previous year, raising questions about whether the slide should be seen as a warning sign, especially as Vietnam is changing its investment policy in a way that favors global corporations. The decline resulted primarily from newly registered foreign direct investment (FDI) and foreign indirect investment (FII). Meanwhile, FDI disbursements rose by 9.4% over 2023 to a record high of US$25.35 billion, marking the third consecutive year of growth. In 2024, Vietnam recorded 3,502 deals for capital contributions and share acquisitions by foreign investors, totaling US$4.54 billion. While the number of deals increased by a slight 1.5%, the total value fell […]
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