Further institutional reform, policy consistency, improvements in the quality of human resources, and the development of strategic infrastructure are seen as crucial conditions for Vietnam to maintain its FDI growth trajectory in the coming years. (Photo: Huy Dung)

The article, released on February 25, said Vietnam attracted its highest level of FDI over the past five years in 2025 and is expected to maintain its appeal in 2026 as international investors regard the country as one of the region’s most promising long-term investment destinations. However, it also cautioned that sustaining large inflows will come with notable challenges.

Citing Italy-founded international law firm D’Andrea & Partners Legal Counsel (DP Group), which specialises in cross-border legal and tax advisory services, the report noted that Vietnam ranks among the seven most promising markets in Asia. This assessment is based on a combination of macroeconomic stability, ongoing domestic reforms, and shifts in the global investment landscape. A stable macroeconomic foundation was highlighted as a key factor underpinning the country’s attractiveness.

Referring to data from the National Statistics Office under the Ministry of Finance, DP Group said FDI inflows in January alone were estimated at 1.68 billion USD, up 11.3% year-on-year and marking the highest January figure in the past five years. The performance reflects sustained investor confidence in Vietnam’s growth outlook. In addition to newly licensed projects, many existing projects expanded their capital, signalling long-term commitments from foreign investors and positive assessments of the country’s business climate.

The upbeat start to the year followed strong results in 2025, when total registered FDI exceeded 38.4 billion USD and disbursed capital reached 27.62 billion USD, also the highest level in five years. Notably, more than 80% of disbursed capital was channelled into processing and manufacturing, underscoring the long-term and stable nature of the inflows and laying the groundwork for a demand increase in industrial real estate and logistics.

DP Group forecasts that Vietnam will sustain robust GDP growth in 2026, supported by the resilience of its manufacturing sector and steady expansion of domestic consumption. The firm also observed that the country’s new policy orientations increasingly emphasise technology, innovation, sustainable development and knowledge transfer, providing a foundation for long-term growth.

Several sectors are seen as particularly well-positioned to attract FDI, including high-tech manufacturing, electronics assembly, semiconductor packaging and testing, and advanced component production. Meanwhile, the development of the energy sector, especially renewable energy, is expected to draw substantial investment.

According to DP Group, these fundamentals position Vietnam as one of Asia’s leading destinations for foreign investment, not only in scale but also in quality, amid the ongoing restructuring of global capital flows.

Nevertheless, the article pointed to several bottlenecks that could affect the country’s ability to sustain FDI momentum in 2026. These include intensifying competition within the Association of Southeast Asian Nations (ASEAN), infrastructure constraints in some localities, and shortages of highly skilled labour, particularly in technology-related fields.

Global factors such as geopolitical realignments, interest rate adjustments in major economies, and mounting environmental, social and governance (ESG) requirements are also expected to influence multinational investment strategies and, consequently, capital flows.

In this context, further institutional reform, policy consistency, improvements in the quality of human resources, and the development of strategic infrastructure are seen as crucial conditions for Vietnam to maintain its FDI growth trajectory in the coming years, the article noted.