The mark of processing and manufacturing industry in attracting FDI

FDI capital in the processing and manufacturing industry has always been in the top position in nearly 40 years of attracting FDI in Vietnam. Photo: D.T

Imprints from the processing and manufacturing industry

A series of FDI projects in the processing and manufacturing industry were granted investment registration certificates in August 2025. The most prominent ones include the Smartphone Manufacturing Project of Luxshare-ICT (China), with a total registered capital of 300 million USD, invested in Bac Ninh ; the Project to manufacture, assemble and develop high-voltage direct current (HVDC) and high-efficiency alternating current (AC) transformers... of GE Vernova Hai Phong Co., Ltd. - GRID Branch (USA), invested in Hai Phong, with a total registered capital of 207 million USD.

In addition, the Hailide Fibers (Hong Kong) Synthetic Fiber Factory Project for the Automotive Industry and Other Industries increased its capital by 200 million USD to raise the total investment capital to 335 million USD in Tay Ninh . The above projects have significantly contributed to bringing the total FDI capital in the processing and manufacturing industry in August 2025 alone to 1.6 billion USD, accounting for 76.5% of the total FDI capital attracted this month.

In fact, in nearly 40 years of attracting FDI, although the “taste” of investors has changed a lot, later focusing on the fields of real estate, finance - banking, retail, etc., FDI capital in the processing and manufacturing industry has always been in the top position. Perhaps, the biggest change is the increase in “huge” investments in high-tech projects, electronics, semiconductors, etc. - the world 's pioneering industries.

Data from the Foreign Investment Agency (Ministry of Finance) shows that, to date, there has been a cumulative 320.7 billion USD of FDI capital invested in the processing and manufacturing industry in Vietnam, accounting for 61.3% of the total valid FDI capital (523.5 billion USD - PV). Of which, in the first 8 months of 2025 alone, the figure was nearly 15.3 billion USD, accounting for about 58.5% of the total registered FDI capital, an increase of 7.7% over the same period in 2024.

The significant investment in this sector has contributed significantly to the total registered FDI capital in Vietnam in the past 8 months reaching 26.1 billion USD, up 27.3% over the same period. Meanwhile, the realized capital reached 15.4 billion USD. These are very positive figures, which, according to the Foreign Investment Agency, have proven that Vietnam continues to be an "attractive destination for international investment capital".

In a report released at the end of August 2025, Guotai Junan Vietnam Securities Company, although taking statistics on FDI attraction in Vietnam in 7 months, with 24.1 billion USD, up 27.3% over the same period in 2024, emphasized that this is a "positive sign for the Vietnamese economy", and at the same time shows that Vietnam "is still an attractive destination in the eyes of international businesses".

“The Phu Bai Brewery expansion project not only increases the scale and capacity, but also demonstrates our long-term commitment to Vietnam,” Carlsberg Vietnam General Director Andrew Khan affirmed at the recent inauguration event of the expanded Carlsberg Phu Bai Brewery, with a scale of 90 million USD.

Increasing challenges, pressure to improve competitiveness

Although FDI capital into Vietnam is still very positive, the reality is that competitive pressure to attract FDI is increasing, especially when global FDI flows continue to decline (down 11% in 2024, this year at risk of a deeper decline, due to geopolitical risks, trade protectionism and supply chain fragmentation).

According to UNCTAD’s Global Investment Report 2025, FDI flows into Europe have fallen by 58%, while those into Southeast Asia have increased by 10%. This shows the growing attractiveness of ASEAN, including Vietnam, to international investors. But whether Vietnam can seize this opportunity or not is another matter.

There is a notable point in the statistics on FDI attraction in Vietnam in the past 8 months. That is, while additional investment capital and investment capital through capital contribution and share purchase continued to increase sharply, reaching 10.6 billion USD, up 85.9% and nearly 4.5 billion USD, up 58.8% over the same period, respectively, newly registered capital still decreased, with over 11 billion USD, down 8.1% over the same period.

The Foreign Investment Agency commented that the decrease in newly registered capital shows that investors are more cautious when launching new projects in Vietnam, due to fluctuations in the global market. Although existing projects have significantly expanded in scale, showing the long-term confidence of investors operating in Vietnam, it is clear that attracting new projects has not really made a breakthrough.

Even the Foreign Investment Agency is concerned that although the processing and manufacturing industry continues to lead, with 58.5% of total registered FDI capital and this has been a stable trend for many years, this also has risks if the electronics - components supply chain experiences fluctuations. In recent years, the large investment capital flow in this field has made Vietnam an important link in the global supply chain.

But difficulties continue to emerge. Mr. Bui Tat Thang, former Director of the Institute of Development Strategy (formerly under the Ministry of Planning and Investment), when speaking at the Consultation Seminar on the Socio-Economic Situation organized by the Standing Committee of the National Assembly's Economic and Financial Committee last weekend, mentioned two factors affecting FDI flows in the coming time: global minimum tax and changes in supply chains both internationally and regionally.

In addition, the recent introduction of the US “reciprocal tax” policy by Mr. Bui Tat Thang also believes that it will have a significant impact on the trend of FDI capital flows. “To continue to maintain its attractiveness, Vietnam must facilitate investment by continuing to reform administrative procedures to grant licenses quickly and reduce costs in the investment preparation stage. Along with that, immediately apply support mechanisms to replace tax incentives,” said Mr. Bui Tat Thang.

This expert mentioned support policies that have a lot of room for implementation, such as support for access to land and business premises; support for infrastructure and social housing in and near industrial parks; support for handling visa and work permit issues; support for human resource training, etc.

The Foreign Investment Agency also emphasized the need to continue improving the investment environment, infrastructure and supporting industries to enhance competitiveness in attracting FDI.

Source: https://baodautu.vn/dau-an-tu-cong-nghiep-che-bien-che-tao-trong-thu-hut-fdi-d380860.html