Vietnam Emerges as Asia’s Most Attractive Investment Destination

According to the Japan External Trade Organization (JETRO), Vietnam ranks as the second most attractive global investment destination and the top choice in Asia. HSBC further highlights Vietnam’s appeal to foreign investors, with projects from 147 countries and territories. Leading the pack is South Korea, with $89.1 billion in registered capital (17.9% of total FDI), followed by Singapore at $82.3 billion, and other major investors like Japan and Taiwan.

Oxford Economics predicts that Vietnam’s foreign direct investment (FDI) inflows will maintain their upward trajectory, albeit at a slightly slower pace. Currently, FDI enterprises contribute 75% of Vietnam’s export turnover, and this trend is expected to grow as concerns over higher tariffs on Chinese goods persist. However, potential uncertainties loom as the U.S. considers imposing a 10% tariff on Vietnamese exports such as cars, metals, and solar batteries in early 2025. Despite this, experts believe these measures will have limited short-term effects due to delays between policy announcement and implementation.

The impact of new U.S. tariffs, if implemented, is projected to be more pronounced by 2026. Nevertheless, Vietnam’s strong manufacturing base and strategic role in the global value chain will likely support its resilience, allowing the country to benefit from the ongoing China+1 strategy.

In the short term, FDI inflows are expected to bolster domestic businesses. Vietnam’s FDI growth in 2025 is forecasted to reach 7.2%, outpacing the projected 6.9% growth for 2024.