Disbursed foreign direct investment (FDI) in Vietnam during January-August of 2025 was estimated at a five-year high of US$15.4 billion, reported the Ministry of Finance's Foreign Investment Agency.

This represents an 8.8% increase compared to the same period last year, the agency said.

According to the agency, the rise in disbursed capital reflects Vietnam’s improved capacity to absorb funds and faster disbursement progress, especially amid declining global investment flows.

The report noted registered FDI also posted strong growth, rising 27.3% year on year to reach a total of $26 billion in the eight-month period, reflecting growing confidence among foreign investors in Vietnam’s business climate.

Of this, more than 2,500 newly licensed projects were approved with registered capital of $11 billion, a 12.6% annual rise in project numbers despite an 8.1% drop in capital value.

Vietnam saw an addition of $10.6 billion flow into nearly 1,000 existing projects during eight months, marking an 86% increase from last year.

Capital contributions and share purchases totaled $4.5 billion across more than 2,200 transactions, up nearly 59% year on year.

The manufacturing and processing industry remained the top destination for new FDI, attracting $6.5 billion (59.2% of new capital). Real estate followed with $2.4 billion (21.5%), while other sectors accounted for $2.1 billion (19.3%).

In equity contributions, manufacturing led with $1.6 billion (37%), followed by professional, scientific, and technological activities at $981.7 million (22%).

The surge reflects the smooth progress of major projects and Vietnam’s ongoing efforts to improve its investment environment, ease regulatory hurdles, and support foreign businesses, the report noted.

Among 78 countries and territories investing in Vietnam during the period, Singapore led with $3.1 billion (27.8% of new capital), followed by China ($2.6 billion, 24%), Sweden ($1 billion, 9.1%) and Japan ($877.9 million, 8%).

In the first eight months of 2025, 31 provinces and cities across the country attracted foreign investment. Bac Ninh Province took the lead with $4.7 billion in registered capital, accounting for 17.9% of the national total, up 4.8% year-on-year.

Ho Chi Minh City ranked second with nearly $4.4 billion, or 16.8% of total registered investment, followed by Hanoi with more than $3.8 billion, making up 14.5%. Dong Nai, Haiphong, and Tay Ninh came next in the rankings.