The year 2025 is pivotal for Vietnam as it enters into the final year of its socio-economic development plan for 2021-2025. More than just a milestone, 2025 is shaping up to be a defining year for FDI, setting the stage for a new wave of capital inflows.

Right from the outset of the year, Vietnam’s investment landscape delivered a striking performance. Total registered FDI surged to $4.33 billion in January, increasing 48.6 per cent year-on-year. This remarkable growth not only signals a robust start to 2025 but also reaffirms Vietnam’s standing as an increasingly attractive destination for global investors.

Beyond the numbers, a deeper shift is underway. The government is driving FDI attraction towards sustainability and high-value investments, while cities and provinces nationwide have bold ambitions to ride the wave of production shifts. The focus is clear: high-tech industries, green growth, and long-term sustainable development. With such strong momentum from the opening months, 2025 is not just a year of progress - it is a launch-pad for Vietnam’s next great leap forward on the global investment stage.

Ambitious targets

As one of Vietnam’s leading industrial hubs and home to major investors such as LEGO, Pandora, and Polytex Far Eastern, southern Binh Duong province has set an ambitious goal of attracting over $3 billion in FDI this year, with a disbursement rate exceeding 70 per cent, or approximately $2.1 billion. The province is prioritizing high-quality FDI projects with advanced technology. Compared to the $1.9 billion in FDI it secured in 2024, Binh Duong’s 2025 target represents a 57.9 per cent increase, underscoring its major ambition to make a breakthrough in investment attraction.

This $3 billion FDI target is seen as achievable, as by early February the Binh Duong Provincial People’s Committee had already granted investment approval and issued investment licenses to seven FDI projects with a total value of nearly $1 billion. This solid start lays the groundwork for the province to realize its full-year ambitions. Moreover, Binh Duong has consistently ranked among Vietnam’s leading provinces in FDI attraction. As of the end of January 2025, it ranked third nationwide, with total registered FDI of $42.56 billion in 4,427 valid projects, accounting for 10.47 per cent of projects in Vietnam and 8.4 per cent of total registered FDI.

Similarly, the Ho Chi Minh City Department of Planning and Investment has estimated that the southern metropolis needs to attract approximately $1.76 billion this year to achieve its goal of 10 per cent GDP growth. It remains Vietnam’s top FDI destination, with total registered capital reaching $58.96 billion in 13,727 valid projects. This achievement not only reaffirms the city’s appeal among international investors but also signals strong momentum for continued FDI inflows in 2025, supporting its ambitious growth targets.

Following the lead of Binh Duong and Ho Chi Minh City, Hanoi has also set bold FDI targets for 2025. With a vision of sustainable economic growth, the capital aims to attract around $2.7 billion in FDI, up from $2.16 billion in 2024. To date, its total registered FDI has surpassed $43.07 billion in 7,589 active projects, representing 17.9 per cent of all projects and 8.5 per cent of all registered FDI nationwide. This positions Hanoi as Vietnam’s second-largest recipient of foreign investment.

Meanwhile, Bac Ninh, a key economic hub in northern Vietnam, has not set an annual FDI target, like elsewhere, but has instead outlined a remarkable goal: attracting $2.5 billion in FDI within the first quarter of 2025. This ambitious short-term target reflects its determination to maintain its status as a prime destination for foreign investment.

Beyond these major cities and provinces, several other localities are also setting clear FDI goals, focusing not only on urban centers but also on industrial parks. For instance, the Hai Duong Industrial Zones Management Board in the northern region has targeted at least $1 billion in FDI this year. These proactive investment strategies not only drive local economic growth but also paint a dynamic picture of Vietnam’s FDI landscape in 2025, highlighting the country’s strong appeal on the global investment map.

Enhancing the investment environment

The government issued Resolution No. 25/NQ-CP on February 5, aiming for 18 of Vietnam’s 63 cities and provinces to achieve double-digit gross regional domestic product (GRDP) growth in 2025. To reach this goal, FDI inflows will play a pivotal role, not only driving economic expansion but also enhancing competitiveness, accelerating economic transformation, and laying the foundation for sustainable development in localities.

To achieve the best possible growth outcome, most cities and provinces are prioritizing the attraction of large-scale manufacturing and processing projects, high-tech applications, smart production, and green energy. In particular, with high added value and deep integration into global supply chains, the semiconductor industry is emerging as a top priority.

At the same time, localities have proactively introduced comprehensive solutions to meet the demands of foreign investors. Key strategies include strengthening transport infrastructure investment, prioritizing high-tech industries and clean, renewable energy, and continuously reforming administrative procedures to create a more favorable business environment and offer support to enterprises.

According to Mr. Vo Van Minh, Deputy Secretary of the Binh Duong Provincial Party Committee and Chairman of the Provincial People’s Committee, the province is implementing a series of regional transport infrastructure projects, modernizing industrial parks, and designing strategic development spaces to attract high-quality investments. In parallel, it is also accelerating digital transformation, promoting the green economy and the circular economy, and striving for sustainable development.

Hanoi is also making ongoing efforts to improve the investment environment while also focusing on training a highly-skilled workforce to meet the technological requirements of FDI enterprises. As one of the country’s key economic hubs, FDI inflows continue to play a crucial role in the capital’s sustainable development.

To strengthen its competitiveness amid shifting FDI flows into Southeast Asia, Hanoi is prioritizing bold reforms and enhancing the quality of its investment and business environment. The city is also expediting the planning and development of new industrial clusters and upgrading modern infrastructure to meet investors’ practical needs.

Meanwhile, Mr. Phan Van Mai, Chairman of the Ho Chi Minh City People’s Committee, has said the city is actively implementing its “Project to Improve FDI Attraction Efficiency for 2023-2025”, with a focus on high-tech industries, support industries, and the development of an international financial center. “Notably, the construction of the Ho Chi Minh City International Financial Center is regarded as a top priority, not only expanding capital mobilization channels but also attracting substantial investment flows to support economic growth,” Mr. Mai emphasized.