Vietnam’s foreign direct investment (FDI) performance in the first quarter of 2026 reflects a strong rebound in new investment commitments alongside steady disbursement growth, signaling sustained investor confidence despite a volatile global environment.
While headline figures show robust expansion, underlying trends point to a more nuanced investment landscape shaped by large-scale projects and cautious capital expansion among existing investors.
Overview of FDI performance in Q1 2026
Disbursement maintains steady growth
In the first three months of 2026, Vietnam attracted over US$15.2 billion in total foreign direct investment (FDI), a 42.9 percent year-on-year increase. Cumulative disbursed capital reached US$355.7 billion, equivalent to approximately 65.6 percent of total registered capital.
FDI disbursement in Q1 2026 remained on an upward trajectory, reaching over US$5.4 billion. This sustained growth suggests that existing projects are being implemented relatively smoothly, reinforcing investor confidence in Vietnam’s business environment despite global uncertainties.
Trade performance of the FDI sector
The FDI sector continued to dominate Vietnam’s trade activity:
- Exports (including crude oil) reached over US$98.4 billion, up 33.3 percent year-on-year, accounting for roughly 80 percent of total export turnover.
- Imports were estimated at US$91.3 billion, rising 45.3 percent year-on-year and representing 72 percent of total imports.
Overall, the FDI sector recorded a trade deficit of over US$7 billion (including crude oil) in the first three months of 2026, while the domestic sector posted a trade surplus exceeding US$10.7 billion during the same period.
FDI registration trends
Strong growth driven by new projects
As of March 31, 2026, Vietnam had 46,198 valid FDI projects with total registered capital exceeding US$542 billion.
Total registered FDI in Q1 2026 increased significantly, largely driven by newly licensed projects:
- New projects: 904 (up 6.4 percent YoY), with total capital of over US$10.2 billion (up 136.2 percent)
- Capital adjustments: 251 projects (down 37.3 percent), with additional capital of US$2.3 billion (down 55.1 percent)
- Capital contributions/share purchases: 703 transactions (down 1.8 percent), totaling over US$2.6 billion (up 128.2 percent)
This indicates a divergence in investment behavior: while new investment commitments and M&A activity expanded, existing investors remained relatively cautious in scaling up operations.
March 2026 spike in investment activity
In March alone, total registered FDI reached over US$9.1 billion, a sharp 165 percent increase month-on-month.
This surge was primarily driven by:
- A strong rise in newly registered capital (up 227 percent MoM)
- A significant increase in capital contributions and share purchases (up 618 percent MoM)
Major project highlight
A key project in March was the Huynh Lap LNG-to-power plant in Nghe An Province, backed by South Korean investors, with total registered capital exceeding US$2.2 billion.
The project reflects growing foreign interest in Vietnam’s energy sector, particularly in gas-fired power and LNG infrastructure aligned with national energy planning.
Sectoral distribution: Manufacturing leads, energy gains ground
Foreign investors invested in 18 out of 21 economic sectors during Q1 2026.
- Manufacturing and processing remained dominant, attracting over US$9.2 billion, accounting for 60.8 percent of total registered capital
- Power generation and utilities ranked second with over US$2.3 billion (15 percent)
- Other sectors included:
- Wholesale and retail: US$1.97 billion
- Real estate: US$681.8 million
- Professional, scientific, and technical services: US$339.6 million
In terms of project count:
- Wholesale and retail led in new projects and M&A activity
- Manufacturing continued to dominate capital adjustment activity
Vietnam’s FDI Distribution by Sector, 2025 | ||
Sector | Registered Capital (US$ billion) | Share (%) |
Manufacturing and processing | >21.0 | 54.7 |
Real estate activities | >7.1 | 18.5 |
Wholesale and retail trade; Repair of motor vehicles | >3.0 | 7.9 |
professional, scientific, and technical activities | >1.9 | 5.1 |
Source: FIA Vietnam | ||
Investment by country: Singapore and South Korea lead
Investors from 68 countries and territories invested in Vietnam during Q1 2026.
- Singapore ranked first with over US$6.3 billion (41.6 percent of total FDI)
- South Korea followed with US$4.4 billion (28.7 percent)
- Other key investors included Indonesia (US$1.7 billion), China (US$828.3 million), and Hong Kong (US$371.2 million)
In terms of project numbers:
- China led in new projects (31.8 percent of total ) and M&A transactions (28.3 percent)
- South Korea led in capital adjustments (20.7 percent)
Vietnam’s FDI by Investment Partners in 2025 | ||||
Rank | Partner | Total registered capital (US$ billion) | YoY change | Rank change (YoY) |
1 | Singapore | 9.40 | ↓ 8.0% | 0 |
2 | China | 5.70 | ↑ 20.4% | ↑ 1 |
3 | South Korea | 5.29 | ↓ 25.0% | ↓ 1 |
4 | Japan | 3.73 | ↑ 6.6% | ↑ 1 |
5 | Hong Kong | 3.13 | ↓ 28.0% | ↓ 1 |
6 | Malaysia | 2.06 | ↑ 1,014.0% | ↑ 10 |
7 | Taiwan | 1.72 | ↓ 17.3% | ↓ 1 |
8 | Thailand | 1.15 | ↑ 412.2% | ↑ 7 |
9 | Sweden | 1.02 | ↑ 90,587.0% | ↑ 49 |
10 | British Virgin Islands | 0.91 | ↑ 55.6% | 0 |
11 | Other Partners | 4.30 | ↓ 91,976.4% | — |
Total | 38.42 | ↑ 40.9% | — | |
Source: FIA Vietnam | ||||
Investment by location: Concentration in key industrial hubs
FDI inflows were recorded in 29 provinces and cities.
- Thai Nguyen led with over US$5.7 billion (37.6 percent of total FDI)
- Ho Chi Minh City ranked second with over US$2.9 billion (19.2 percent)
- Nghe An followed with over US$2.3 billion (14.8 percent)
Other key destinations included Bac Ninh, Tay Ninh, and Hanoi.
In terms of project numbers:
- Ho Chi Minh City led in both new projects (52.5 percent of total FDI) and M&A transactions (70.4 percent)
- Bac Ninh led in capital adjustment projects (31 percent)
Vietnam’s FDI Ranking by Province | ||||
Rank | Province/City | Total registered capital (US$ billion) | YoY change | Ranking change |
1 | Ho Chi Minh City | 7.09 | ↑5.8% | 0 |
2 | Bac Ninh | 5.69 | ↓10.3% | 0 |
3 | Hanoi | 4.44 | ↑105.3% | ↑4 |
4 | Dong Nai | 4.23 | ↑65.1% | ↑2 |
5 | Tay Ninh | 2.92 | ↑98.1% | ↑4 |
6 | Hai Phong | 2.33 | ↓59.5% | ↓3 |
7 | Hung Yen | 1.78 | ↓35.6% | ↓2 |
8 | Ninh Binh | 1.65 | ↑47.0% | ↑2 |
9 | Gia Lai | 1.51 | ↑1,329.9% | ↑12 |
10 | Phu Tho | 1.17 | ↑124.4% | ↑4 |
11 | Other localities | 5.61 | ↓34.6% | — |
| Total | 38.42 | ↑40.9% | — |
Source: FIA Vietnam | ||||
Key observations from Vietnam’s FDI growth in Q1 2026
Disbursement signals sustained investor confidence
The continued growth in disbursed capital indicates that existing FDI projects are progressing steadily, even as global investment conditions remain uncertain. This reinforces the role of the FDI sector in supporting Vietnam’s production and export performance.
Diverging investment patterns
The structure of FDI inflows shows a clear divergence:
- Strong growth in newly registered capital highlights Vietnam’s continued attractiveness as a destination for supply chain diversification
- Stable M&A activity reflects ongoing market entry via existing enterprises
- Declining capital adjustments suggest cautious expansion by existing investors
Growth driven by large-scale projects
The strong increase in total registered capital was largely driven by several large-scale projects in manufacturing, high-tech, and energy.
Excluding these projects, overall growth would be more moderate, indicating that FDI performance remains somewhat dependent on major investments.
Improving quality of FDI inflows
Vietnam continues to attract high-value, technology-intensive projects, supporting its strategy of selective FDI attraction focused on:
- Advanced technology
- High value-added production
- Spillover effects to domestic enterprises
Persistent concentration risks
FDI inflows remain concentrated:
- By sector: heavily skewed toward manufacturing
- By country: dominated by a few major investors
- By location: concentrated in leading provinces
This highlights the need to improve infrastructure, land availability, and workforce quality in other regions to broaden investment distribution.
Outlook: Positive but uneven momentum
Overall, FDI performance in Q1 2026 shows positive but uneven momentum.
While Vietnam continues to attract new investment, particularly in manufacturing, high-tech, and energy, investor sentiment remains cautious, as reflected in reduced capital expansion among existing projects.
Looking ahead, external factors such as geopolitical risks, energy prices, logistics costs, and shifting trade policies will continue to influence investment decisions.
To sustain momentum, Vietnam will need to:
- Accelerate infrastructure development, particularly in energy
- Support existing investors to expand operations
- Maintain focus on high-quality FDI in sectors such as semiconductors, R&D, renewable energy, and supporting industries
