Vietnam listed in world’s top 20 host economies for FDI for first time

PSNews - According to the world's investment report at the United Nations conference on Trade and Development (UNCTAD), Vietnam was up five places against last year's ranking to reach 19th on the list. 

Vietnam was named among the world’s top 20 host economies for foreign direct investment (FDI) for the first time in 2020 with an inflow of 16 billion USD. The country was up five places against last year’s ranking to reach 19th on the list.

While global FDI flows fell by 35 percent to 1 trillion USD amid the COVID-19 pandemic, the lowest level since 2005 and almost 20 percent lower than the 2009 trough after the global financial crisis, the FDI in Southeast Asia, considered an engine of global FDI growth for the past decade, contracted by 25 percent to 136 billion USD, said the report.

Vietnam was up five places against last year's ranking to reach 19th on the list. Source: Shutterstock.
Vietnam was up five places against last year's ranking to reach 19th on the list.
Source: Shutterstock.

It stated that Vietnam remained among the three largest recipients in the region with a decline of only 2 percent, while the remaining two of Singapore and Indonesia suffered drops of up to 21 percent and 22 percent, respectively.

According to UNCTAD, a slight decline in FDI to the country was due to significantly lower investment contractions in manufacturing and realty activities.

However, thanks to the rise in investment in electricity projects, including a 5 billion USD gas-fired power plant proposed by ExxonMobil (US) and a 2.2 billion USD coal-fired power plant developed by Thai MNEs in the Quang Tri Economic Zone, the flow of FDI was still okay.

As investors, Singapore and Japan topped the list of countries and territories having investment projects, in which Singapore’s reached 5.64 billion USD, 37 percent of the total and Japan invested 2.44 billion USD, a surge of 67 percent in investment compared to 2019.

UNCTAD pointed out local measures to promote investment, including the permission for certain disputes between foreign investors and the State to be taken to international arbitration, were keys to attract FDI inflows.

The report also said the Vietnamese government has expanded the list of business lines eligible for investment incentives, along with the publishing of a detailed list of conditions applied for businesses to be considered high-tech enterprises eligible for tax incentives as good points.

“Vietnam for the first time introduced a negative list on market access, affording foreign investors with national treatment (NT) except in the sectors included in that list. The country also raised the cap on foreign ownership in domestic airlines.”

According to the report released late June, the US continued to be the world’s largest FDI recipient, followed by China and Hong Kong (China). UNCTAD expected global FDI flows to bottom out in 2021 and later recover some lost ground, with an increase of about 10-15 percent.

The report said: “This would still leave FDI some 25 percent below the 2019 level,” adding current forecasts show a further increase in 2022 when the upper bound of projections would bring FDI back to the 2019 level.

The report concluded: “Prospects are highly uncertain and will depend on, among other factors, the pace of economic recovery and the possibility of pandemic relapses, the potential impact on FDI of recovery spending packages, and policy pressures".

In the first six months of 2021, the total FDI commitments to Vietnam declined by 2.6 percent year-on-year to 15.27 billion USD, the FDI disbursement rate, however, rose by 6.8 percent to stay at 9.24 billion USD.

Currently, Vietnam has totally 33,787 foreign investment projects with a combined registered capital of 397.89 billion USD, while the disbursed amount stood at 241.1 billion USD, 60.6 percent of the committed amount.

By L.B

Other News

Data-driven land valuation to curb speculation: Experts

Data-driven land valuation to curb speculation: Experts

From a property-market perspective, Do Thi Thu Giang, National Director of Valuation and Advisory at Savills Vietnam, said the orientations under Resolution No. 21-NQ/TW could make the market more transparent and efficient, with property values increasingly tied to actual development and use potential.

Resolution No. 19-NQ/TW sets new growth drivers for Vietnam

Resolution No. 19-NQ/TW sets new growth drivers for Vietnam

Science and technology, innovation, digital transformation and AI must be translated into higher productivity rather than pursued as ends in themselves. At the same time, people should be placed at the centre of development, not merely viewed as a resource but as the ultimate objective of development policies.

Expo to open door for Vietnamese suppliers to enter US market

Expo to open door for Vietnamese suppliers to enter US market

US retail giant Target is seeking Vietnamese suppliers of household goods, home textiles, children’s products, personal care and beauty products, with a focus on companies capable of manufacturing and developing products that meet requirements on quality, design and supply chain management.

2026 Banking Sector Digital Transformation to open in Hanoi

2026 Banking Sector Digital Transformation to open in Hanoi

The annual event, which will be held on August 18-19, 2026, at the ICE International Exhibition Centre, 91 Tran Hung Dao Street, Hanoi, is expected to attract around 324 delegates and feature 21 booths representing credit institutions, payment intermediary service providers, and technology companies.

Vietnam – one of most attractive destinations for leading US semiconductor companies: expert

Vietnam – one of most attractive destinations for leading US semiconductor companies: expert

Vietnam has built a solid semiconductor and electronics industry before joining ITSI, attracting major US semiconductor companies. Intel Products Vietnam is one of Intel's largest assembly and testing facilities worldwide, while chip design companies such as Synopsys, Cadence, Marvell and Qualcomm have established engineering and research centres in the Southeast Asian country.

Vietnam targets higher-quality FDI under Resolution 10

Vietnam targets higher-quality FDI under Resolution 10

During the first seven months of 2026, Vietnam attracted more than 38 billion USD in registered FDI, up nearly 58% year-on-year. More importantly, the increase was driven by large-scale, high-tech projects rather than a surge in the number of new investments, signalling a significant improvement in the quality of capital inflows.

Manufacturing, engineering drive hiring growth in H1: report

Manufacturing, engineering drive hiring growth in H1: report

Manufacturing and engineering posted the strongest recruitment growth, with hiring demand surging 70% year-on-year, driven by production expansion, supply chain restructuring and sustained investment inflows in high-tech manufacturing.

Government proposes special mechanisms to unblock APEC 2027 projects in Phu Quoc

Government proposes special mechanisms to unblock APEC 2027 projects in Phu Quoc

The projects in Phu Quoc have been implemented under tight deadlines. Since May 2025, the Prime Minister has directed preparations for APEC 2027, including accelerated infrastructure development on the special zone. An Giang province and investors have subsequently launched a number of major projects involving complex technical requirements and demanding construction schedules.

Financial market reform plan targets high, sustained growth through 2045

Financial market reform plan targets high, sustained growth through 2045

The plan seeks to develop a balanced and modern financial market that is closely integrated with regional and global markets, strengthens the mobilisation and allocation of domestic and foreign capital, and enhances the market’s role as a key provider of medium- and long-term capital for the economy and as a major driver of sustained high economic growth.

An Giang aims to become leading maritime economic hub

An Giang aims to become leading maritime economic hub

Under the province's master plan for 2021–2030 with a vision to 2050, An Giang will prioritise investment in five strategic sectors: strategic infrastructure; processing industries and clean energy; trade, services, logistics and border-gate economy; high-quality tourism; and high-tech agriculture, ecological development and the circular economy.