Vietnam attracts higher-quality FDI with rising US, European capital flows

Vietnam continues to draw strong interest from foreign investors, with capital inflows from the US and Europe emerging as a significant driver of growth.

Strong momentum in investment activity

A highlight in recent days was ExxonMobil’s survey in South Van Phong in south central Khanh Hoa province. The US energy giant is considering a 10-billion-USD investment in a modern refinery project, which, if implemented, will be among its first near-zero emission facilities. The company plans to complete surveys by 2027, begin construction and investment procedures in 2031, and launch operations in 2035.

This development has added momentum to FDI flows into Vietnam, which remain robust despite global uncertainties over tariffs and geopolitical tensions.

In mid-August, Bac Ninh province licensed nine new FDI projects worth 322.5 million USD and approved capital increases of 762 million USD for nine existing projects, bringing total new FDI commitments in the province to over 1 billion USD within just one month. Following its mergence with Bac Giang, Bac Ninh has strengthened its role as a northern “investment hub,” particularly in high-tech and semiconductor industries. The province now ranks second nationwide in FDI attraction, after Ho Chi Minh City, both for the first seven months of 2025 and on a cumulative basis.

On August 19, among 250 projects inaugurated or launched nationwide, five were FDI projects with a combined value of 54 trillion VND (around 2.2 billion USD), notably including the 4.2-billion-USD North Hanoi Smart City developed by the BRG–Sumitomo joint venture.

Upgrading FDI quality through European and US investment

This information aligns with assessments by the Foreign Investment Agency under the Ministry of Finance, which reported that registered FDI in Vietnam reached 24.1 billion USD in the first seven months of 2025, up 27.3% year-on-year.

According to Savills Vietnam, FDI inflows remain stable, supported by Vietnam’s recent administrative boundary adjustments and adoption of a two-tier local administration model, expected to streamline governance and improve investment efficiency. Resolution No. 68-NQ/TW, aimed at boosting private sector development, is also seen as a key foundation for attracting high-quality capital, particularly from investors prioritising transparency and legal stability.

Among the standout transactions, CapitaLand acquired a project from Becamex IDC for 553 million USD in former Binh Duong province. Meanwhile, a consortium of Sumitomo Forestry, Kumagai Gumi, and NTT Urban Development teamed up with Kim Oanh Group to develop the One World project, and Nishi Nippon Railroad purchased a 25% stake in Nam Long’s Paragon Dai Phuoc project.

These deals underscore growing interest from Japanese, Korean, and Singaporean investors, alongside an increasing flow of capital from the US and Europe - the markets known for long-term strategies and high investment standards, according to VNA.

An increasing number of major corporations, particularly from Europe and the US, are investing in Vietnam. (Photo: baodautu.vn)

Minister of Finance Nguyen Van Thang has repeatedly underscored the increasing participation of major US and European corporations such as Qualcomm, LEGO, and SYRE, which are advancing billion-dollar projects and R&D activities in Vietnam.

At the 2025 Global Business Forum, Alexander Ziehe, Chairman of the German Business Association (GBA) and Vice President of Hettich Southeast Asia, reported that 80% of German enterprises in Vietnam view business conditions as good or satisfactory, while 38% plan to expand within the next 24 months.

He emphasized Vietnam’s role as both a manufacturing hub and a strategic gateway to regional and global markets, with opportunities in advanced manufacturing, automation, renewable energy, green technologies, premium consumer goods, and vocational training.

Although US and European investment inflows into Vietnam are not large, rising interest suggests strong potential for these inflows of high-quality capital in the coming years.

Vietnam tourism introduced in RoK’s Gyeongsangbuk-do province

A Vietnam tourism promotion program was held in Gyeongsangbuk-do Province, the Republic of Korea (RoK), on August 25 by the Vietnamese Ministry of Culture, Sports and Tourism (MoCST).

Addressing the event, MoCST Deputy Minister Ho An Phong stated that the program not only introduces the image of Vietnamese tourism to the Korean people but also serves as a symbol of the profound and enduring cooperation between the two countries.

Over the past three decades, he said, Vietnam and RoK have made remarkable strides in economic, trade, and cultural cooperation, with tourism playing a key role in fostering connections and exchanges.

In 2024, Vietnam welcomed more than 4.5 million Korean visitors, an increase of 27.1% compared to 2023 and even surpassing the pre-pandemic level of 2019. However, the first half of 2025 saw a slight 3.2% decline in arrivals, underlining the importance of promotional efforts to restore strong growth momentum, Phong noted.

The program introduced new tourism products tailored to Korean travelers, ranging from luxury beach resorts and golf tourism to cultural–culinary–wellness tours, as well as highland experiences, traditional villages, and indigenous communities, reported VOV.

MoCST Deputy Minister Ho An Phong addresses the event (Photo: anninhthudo.vn)

Enhanced e-visa policies and upgraded aviation infrastructure have also strengthened connectivity, with Vietnam currently operating ten direct flights linking major Korean cities such as Seoul, Busan, and Daegu to Hanoi, Ho Chi Minh City, Da Nang, Nha Trang, and Phu Quoc.

Phong expressed hope that the event would create opportunities for travel agencies, hotels, and airlines from both countries to collaborate and build sustainable partnerships.

Looking ahead, the MoCST plans to promote tourism through digital transformation, smart tourism initiatives, and marketing on digital platforms, social media, and collaborations with Korean KOLs and influencers to engage younger travelers.

Special emphasis will also be placed on strengthening ties with the Vietnamese community in the RoK, recognizing their role as ambassadors in promoting Vietnam’s image abroad.

Vietnam is now recognized as a safe, vibrant destination with rapidly developing tourism infrastructure and diverse offerings from cultural heritage and nature-based tourism to sea and island experiences, catering to the varied preferences of Korean travelers.

Samsung urged to expand investment in Vietnam

Prime Minister Pham Minh Chinh on August 26 called on Samsung Group from the Republic of Korea (RoK) to continue to expand investment in Vietnam, especially in the fields of high technology and research and development (R&D).

Speaking at a meeting with acting head of Samsung Electronics' Device Experience Division Roh Tae Moon in Hanoi, PM Chinh said that on the principle of “mutual benefit, harmonized risks and shared gains,” it is hoped that Samsung will remain a trusted partner of Vietnam in economic and technological development.

He encouraged the group to expand investment in high technology, research and development, semiconductors, and digital transformation; to help develop IT infrastructure and train high-quality human resources for Vietnam; to increase technology transfer and localization; and to consider appointing Vietnamese to senior management positions in Samsung Vietnam.

Welcoming Roh and his colleagues, the PM expressed delight at the positive outcomes of Party General Secretary To Lam’s recent state visit to the RoK, during which many important agreements were reached and are now being actively implemented by both sides.

He stressed that Vietnam and the RoK enjoy long-standing ties. The large Vietnamese community in the RoK and the Korean community in Vietnam, along with many multicultural families, have helped strengthen bilateral friendship. This, he said, provides a strong foundation for businesses of both countries to expand cooperation and investment.

PM Chinh applauded the efforts, determination and business results of Samsung Group in general and Samsung Vietnam in particular, which have contributed to the country's socio-economic development, as well as to the cooperation and friendship between the two countries.

For his part, Roh thanked the Vietnamese leader for the warm welcome, noting that his visit coincided with the 80th National Day anniversaries of both Vietnam and the RoK, VNA reported.

Prime Minister Pham Minh Chinh (R) and acting head of Samsung Electronics' Device Experience Division Roh Tae Moon. (Photo: VNA)

He said Samsung’s total investment in Vietnam had reached 23.2 billion USD by 2024, covering multiple areas including electronics, display, and electrical devices, with plans for further expansion.

By the end of June 2025, Samsung’s mobile phone factories in Bac Ninh and Thai Nguyen provinces had produced 2 billion handsets since operations began in April 2009. In the first six months of this year, Samsung Vietnam recorded 31.8 billion USD in revenue, including 28 billion USD in exports. Its latest flagship, the Galaxy Z Fold 7, produced in Vietnam and launched in July, has received strong response globally, particularly in the US and Europe.

Roh expressed deep gratitude for the consistent support from the Vietnamese Government and local authorities. He praised the dedication of 90,000 Vietnamese employees working at Samsung and reaffirmed the company’s long-term commitment to accompanying Vietnam in its development journey.

Since 2015, Samsung has carried out a range of initiatives to aid Vietnam’s supporting industries. In early 2025, Samsung Vietnam and its parent group set up a rapid response team to strengthen supplier search and evaluation, while offering smart factory consulting to help potential partners improve competitiveness and develop production experts.

At the meeting, PM Chinh also signed a commemorative plaque marking Samsung’s 2 billionth mobile phone produced in Vietnam.

Storm Kajiki disrupts 460 flights and suspends trains across Vietnam

According to a rapid report from the Civil Defense Command of the Ministry of Construction, by 4:00 p.m. on August 25, Dong Hoi Airport in Quang Binh had resumed operations after a temporary closure due to storm number 5 (Kajiki). In total, 460 flights were affected nationwide.

Dong Hoi Airport had been closed from 4:00 a.m. to 4:00 p.m. on August 25. By the time operations resumed, there had been no reported damage to people or infrastructure.

At Tho Xuan Airport in Thanh Hoa, preventive reinforcement of airport infrastructure and equipment was carried out. Flights were suspended from 10:00 a.m. to 9:00 p.m. in coordination with airlines to reschedule operations accordingly, reported VNN.

Over three days, storm number 5 impacted 460 flights across Vietnam. Photo illustration: CAA.

In Hue, Phu Bai Airport secured aircraft parked on the tarmac, including aircraft NB593, ahead of the storm.

As for Vinh Airport in Nghe An - currently under renovation and closed for upgrades - a section of the apron was submerged by approximately 10 centimeters of floodwater, and part of the construction fence around the tarmac collapsed.

As of 4:00 p.m. on August 25, 65 flights were directly affected - either rerouted or canceled due to airports temporarily suspending operations.

Previously, the Vietnam Air Traffic Management Corporation (VATM) had reported that on August 23 and 24, the storm disrupted nearly 395 flights. This brings the total to 460 affected flights over a three-day period.

Impact on railways and maritime transport

In the railway sector, by 4:00 p.m. August 25, train HH51 encountered a fallen tree at kilometer marker 399+750 between Phuc Trach and La Khe (Ha Tinh). Likewise, at 3:10 p.m., train SE5 stopped at kilometer 304+900 between My Ly and Quan Hanh (Nghe An) due to another fallen tree. Both incidents were promptly resolved, and SE5 resumed its journey at 3:27 p.m.

The Vietnam Railway Corporation has suspended trains SE9 (Hanoi - Ho Chi Minh City route) and NA1, NA2 (Hanoi - Vinh route) as a precaution.

In the maritime sector, the Ministry of Construction reported that in areas managed by the maritime authorities of Hai Phong, Thai Binh, Thanh Hoa, Nghe An, Ha Tinh, Hue, and Da Nang, there were 501 vessels, including 201 cargo ships and 300 inland waterway vessels.

Of these, 127 cargo ships had safely anchored in port waters. An additional 62 tugboats were on standby for emergency response, and five construction barges were securely anchored at designated locations by port authorities.

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