Hanoi drew US$2.88 billion in foreign direct investment (FDI) in the first five months of 2025, marking a sharp 160% surge year-on-year, according to the municipal statistics office.

The sharp rise reflects growing investor confidence and a wave of reinvestment activity in the capital, reinforcing Hanoi's appeal as a key investment destination in Vietnam.

Between January and May, Hanoi licensed 151 new FDI projects worth US$210 million, while 68 existing projects saw capital increases totalling US$2.41 billion. The city also recorded 132 instances of capital contributions and share purchases by foreign investors during the period, municipal data showed.

FDI inflows into Hanoi in May alone hit nearly US$1.4 billion, driven by strong reinvestment activity, municipal data showed.

The monthly figure includes US$169 million committed to 36 newly licensed projects and US$1.22 billion in additional capital poured into 23 existing ones. A major contributor was the expansion of the Yen So Park project by Malaysia’s Gamuda Land Vietnam, which accounted for US$1.12 billion of the reinvestment total.

The city also recorded 19 capital contribution and share acquisition transactions by foreign investors in May, valued at US$9.1 million.

Hanoi’s strong FDI performance is attributed to ongoing efforts to improve the investment climate. The city has prioritized investor support and streamlined administrative procedures. Looking ahead to 2025, Hanoi is focusing on developing high-quality industrial infrastructure to better meet investor demands.

Alongside FDI growth, business creation remains active. In May, the city issued licenses to 2,283 newly established domestic firms, which had a total registered capital of $1.32 billion, a 53.3% year-on-year increase. During the same period, 700 businesses resumed operations, 1,489 suspended activities, and 399 dissolved.

In the first five months of the year, the city registered 11,600 new businesses, totaling US$4.17 billion in capital. Some 5,400 firms resumed operations, marking a 6.1% increase. Notably, all business registration filings continued to be processed online, maintaining a 100% on-time and accurate record.