{"id":7870,"date":"2025-06-27T14:31:16","date_gmt":"2025-06-27T07:31:16","guid":{"rendered":"https:\/\/fbcasean.vn\/?p=7870"},"modified":"2026-03-17T19:36:05","modified_gmt":"2026-03-17T12:36:05","slug":"foreign-direct-investment","status":"publish","type":"post","link":"https:\/\/fbcasean.vn\/en\/foreign-direct-investment\/","title":{"rendered":"What is Foreign Direct Investment (FDI)? The current state of FDI in Vietnam"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">M\u1ee5c l\u1ee5c<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #1e73be;color:#1e73be\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #1e73be;color:#1e73be\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/fbcasean.vn\/en\/foreign-direct-investment\/#What_is_Foreign_Direct_Investment_FDI\" title=\"What is Foreign Direct Investment (FDI)?\u00a0\">What is Foreign Direct Investment (FDI)?\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/fbcasean.vn\/en\/foreign-direct-investment\/#Characteristics_of_an_FDI_Enterprise\" title=\"Characteristics of an FDI Enterprise\">Characteristics of an FDI Enterprise<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/fbcasean.vn\/en\/foreign-direct-investment\/#Types_of_Foreign_Investment_FDI\" title=\"Types of Foreign Investment (FDI)\">Types of Foreign Investment (FDI)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/fbcasean.vn\/en\/foreign-direct-investment\/#What_is_an_FDI_Enterprise\" title=\"What is an FDI Enterprise?\u00a0\">What is an FDI Enterprise?\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/fbcasean.vn\/en\/foreign-direct-investment\/#Characteristics_of_an_FDI_Enterprise-2\" title=\"Characteristics of an FDI Enterprise\">Characteristics of an FDI Enterprise<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/fbcasean.vn\/en\/foreign-direct-investment\/#Conditions_to_Become_an_FDI_Enterprise\" title=\"Conditions to Become an FDI Enterprise\">Conditions to Become an FDI Enterprise<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/fbcasean.vn\/en\/foreign-direct-investment\/#How_to_Classify_FDI_Capital\" title=\"How to Classify FDI Capital?\">How to Classify FDI Capital?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/fbcasean.vn\/en\/foreign-direct-investment\/#Key_Manufacturing_Industries_Attracting_FDI_in_Vietnam\" title=\"Key Manufacturing Industries Attracting FDI in Vietnam\u00a0\">Key Manufacturing Industries Attracting FDI in Vietnam\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/fbcasean.vn\/en\/foreign-direct-investment\/#FDI_Trends_Reshaping_Vietnams_Manufacturing_Industry\" title=\"FDI Trends Reshaping Vietnam&#8217;s Manufacturing Industry\u00a0\">FDI Trends Reshaping Vietnam&#8217;s Manufacturing Industry\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/fbcasean.vn\/en\/foreign-direct-investment\/#Government_Policies_Supporting_FDI_in_the_Manufacturing_Sector\" title=\"Government Policies Supporting FDI in the Manufacturing Sector\u00a0\">Government Policies Supporting FDI in the Manufacturing Sector\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/fbcasean.vn\/en\/foreign-direct-investment\/#Challenges_and_Considerations_for_Investors_in_the_Manufacturing_Sector\" title=\"Challenges and Considerations for Investors in the Manufacturing Sector\">Challenges and Considerations for Investors in the Manufacturing Sector<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/fbcasean.vn\/en\/foreign-direct-investment\/#FBC_ASEAN_%E2%80%93_Connecting_Manufacturing_Investment_Businesses\" title=\"FBC ASEAN &#8211; Connecting Manufacturing Investment Businesses\">FBC ASEAN &#8211; Connecting Manufacturing Investment Businesses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/fbcasean.vn\/en\/foreign-direct-investment\/#Frequently_Asked_Questions_about_Foreign_Direct_Investment_FAQ\" title=\"Frequently Asked Questions about Foreign Direct Investment (FAQ)\u00a0\">Frequently Asked Questions about Foreign Direct Investment (FAQ)\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/fbcasean.vn\/en\/foreign-direct-investment\/#How_to_Differentiate_Between_FDI_and_FPI\" title=\"How to Differentiate Between FDI and FPI?\">How to Differentiate Between FDI and FPI?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/fbcasean.vn\/en\/foreign-direct-investment\/#What_is_the_difference_between_FDI_and_ODA\" title=\"What is the difference between FDI and ODA?\">What is the difference between FDI and ODA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/fbcasean.vn\/en\/foreign-direct-investment\/#What_is_FDI_capital\" title=\"What is FDI capital?\">What is FDI capital?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/fbcasean.vn\/en\/foreign-direct-investment\/#What_is_FDI_investment_consulting\" title=\"What is FDI investment consulting?\">What is FDI investment consulting?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\r\n<p style=\"text-align: justify;\"><em>Vietnam\u2019s <strong>FDI <\/strong>landscape is rapidly expanding, offering immense manufacturing opportunities amid global supply chain shifts. Despite infrastructure and regulatory hurdles, join <strong>FBC ASEAN<\/strong> as we explore the strategic policies transforming Vietnam into a premier FDI destination.<\/em><\/p>\r\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"What_is_Foreign_Direct_Investment_FDI\"><\/span>What is Foreign Direct Investment (FDI)?\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p style=\"text-align: justify;\">Foreign direct investment (FDI) is a long\u2011term investment made by a foreign individual or organization into business activities in another country, with the goal of gaining a lasting interest and a meaningful degree of control over the enterprise.<\/p>\r\n<p style=\"text-align: justify;\">Under Vietnamese law, FDI refers to the transfer of capital in money or other assets by foreign investors into Vietnam to carry out investment activities in accordance with the Investment Law.<\/p>\r\n<figure id=\"attachment_9800\" aria-describedby=\"caption-attachment-9800\" style=\"width: 1160px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" class=\"size-full wp-image-9800\" src=\"https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-1.png\" alt=\"FDI is a form of long-term cross-border investment\" width=\"1160\" height=\"650\" srcset=\"https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-1.png 1160w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-1-300x168.png 300w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-1-1024x574.png 1024w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-1-768x430.png 768w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-1-600x336.png 600w\" sizes=\"(max-width: 1160px) 100vw, 1160px\" \/><figcaption id=\"caption-attachment-9800\" class=\"wp-caption-text\">FDI is a form of long-term cross-border investment<\/figcaption><\/figure>\r\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Characteristics_of_an_FDI_Enterprise\"><\/span>Characteristics of an FDI Enterprise<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n<p style=\"text-align: justify;\">FDI has several distinctive characteristics that make it especially relevant for industrial investors and policymakers.<\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li aria-level=\"1\"><strong>Long\u2011term commitment:<\/strong> FDI projects typically involve multi\u2011year capital deployment into fixed assets such as plants, machinery, and industrial parks, rather than short\u2011term speculative flows.<\/li>\r\n<li aria-level=\"1\"><strong>Management control and influence:<\/strong> Foreign investors often participate directly in corporate governance, appoint key managers, and transfer production know\u2011how to ensure that the project aligns with global standards and group strategy.<\/li>\r\n<li aria-level=\"1\"><strong>Technology and knowledge transfer:<\/strong> FDI usually brings proprietary technology, quality systems, and process expertise that would otherwise take years for local firms to develop independently.<\/li>\r\n<li aria-level=\"1\"><strong>Strong linkages with trade: <\/strong>In Vietnam, FDI\u2011led manufacturers account for a large share of exports in electronics, machinery, textiles, and other key sectors, turning the country into a major export platform.<\/li>\r\n<li aria-level=\"1\"><strong>Higher resilience: <\/strong>Because of their sunk costs and integrated supply chains, FDI investors tend to stay committed through economic cycles, which stabilizes employment and exports.<\/li>\r\n<\/ul>\r\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Types_of_Foreign_Investment_FDI\"><\/span>Types of Foreign Investment (FDI)<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n<p style=\"text-align: justify;\">From a practical perspective, CEOs and business development leaders typically consider several main FDI structures when entering Vietnam.<\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li aria-level=\"1\"><strong>Greenfield investment: <\/strong>The foreign investor builds a new manufacturing facility from the ground up, often inside an industrial park with ready infrastructure and streamlined administration.<\/li>\r\n<li aria-level=\"1\"><strong>Brownfield investment and M&amp;A: <\/strong>The investor acquires or takes a controlling stake in an existing Vietnamese company, leveraging its local licenses, workforce, and supplier network while upgrading technology and capacity.<\/li>\r\n<li aria-level=\"1\"><strong>Joint ventures: <\/strong>Foreign and Vietnamese partners contribute capital and share management responsibilities, which can be attractive when local relationships, land access, or licenses are critical.<\/li>\r\n<li aria-level=\"1\"><strong>Public\u2011private partnerships (PPP): <\/strong>In capital\u2011intensive infrastructure or industrial projects, foreign investors may participate through PPPs with state entities under specific regulations.<\/li>\r\n<\/ul>\r\n<figure id=\"attachment_9804\" aria-describedby=\"caption-attachment-9804\" style=\"width: 1160px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"size-full wp-image-9804\" src=\"https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-2.png\" alt=\"4 Types of Foreign Investment (FDI)\" width=\"1160\" height=\"650\" srcset=\"https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-2.png 1160w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-2-300x168.png 300w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-2-1024x574.png 1024w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-2-768x430.png 768w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-2-600x336.png 600w\" sizes=\"(max-width: 1160px) 100vw, 1160px\" \/><figcaption id=\"caption-attachment-9804\" class=\"wp-caption-text\">4 Types of Foreign Investment (FDI)<\/figcaption><\/figure>\r\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"What_is_an_FDI_Enterprise\"><\/span>What is an FDI Enterprise?\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p style=\"text-align: justify;\">An FDI enterprise is generally understood as a business organization in which foreign investors hold a significant ownership stake and which has been granted an investment registration certificate to implement an investment project. This includes enterprises established directly by foreign investors, companies where foreign investors own at least 51 percent of charter capital through new establishment or M&amp;A, and enterprises created by foreign investors to execute PPP projects.<\/p>\r\n<figure id=\"attachment_9810\" aria-describedby=\"caption-attachment-9810\" style=\"width: 1160px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"size-full wp-image-9810\" src=\"https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-4.png\" alt=\"Foreign direct investment (FDI) enterprises in Vietnam are growing rapidly\" width=\"1160\" height=\"650\" srcset=\"https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-4.png 1160w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-4-300x168.png 300w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-4-1024x574.png 1024w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-4-768x430.png 768w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-4-600x336.png 600w\" sizes=\"(max-width: 1160px) 100vw, 1160px\" \/><figcaption id=\"caption-attachment-9810\" class=\"wp-caption-text\">Foreign direct investment (FDI) enterprises in Vietnam are growing rapidly<\/figcaption><\/figure>\r\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Characteristics_of_an_FDI_Enterprise-2\"><\/span>Characteristics of an FDI Enterprise<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n<p style=\"text-align: justify;\">Compared with purely domestic firms, FDI enterprises in Vietnam share a few common characteristics that matter for strategy and compliance.<\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li aria-level=\"1\"><strong>Foreign ownership structure: <\/strong>A foreign investor typically holds a controlling stake or a substantial minority that allows influence over strategic decisions.<\/li>\r\n<li aria-level=\"1\"><strong>Project\u2011based licensing:<\/strong> Establishment and operations are tied to one or more approved investment projects, each with defined scopes, locations, and timelines.<\/li>\r\n<li aria-level=\"1\"><strong>Dedicated capital account:<\/strong> FDI enterprises must open direct investment capital accounts at licensed banks to handle capital contributions, profit remittances, and other related transactions.\u200b<\/li>\r\n<li aria-level=\"1\"><strong>Eligibility for incentives:<\/strong> Depending on the sector, location, and scale, FDI enterprises may benefit from tax holidays, reduced corporate income tax rates, and customs or land\u2011related incentives.<\/li>\r\n<\/ul>\r\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Conditions_to_Become_an_FDI_Enterprise\"><\/span>Conditions to Become an FDI Enterprise<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n<p style=\"text-align: justify;\">From the perspective of a foreign manufacturer planning to enter Vietnam, several basic conditions need to be satisfied for your operation to qualify as an FDI enterprise.<\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li aria-level=\"1\"><strong>Eligible investor and sector:<\/strong> The foreign investor must meet legal requirements, and the intended manufacturing activity must be open to foreign investment under Vietnam\u2019s WTO commitments and local regulations.<\/li>\r\n<li aria-level=\"1\"><strong>Minimum capital and structure:<\/strong> The charter capital and investment capital must meet sector\u2011specific thresholds, particularly in capital\u2011intensive industries such as electronics, automotive components, or heavy machinery.<\/li>\r\n<li aria-level=\"1\"><strong>Investment registration: <\/strong>The investor must obtain an investment registration certificate and, where applicable, an enterprise registration certificate or relevant sub\u2011licenses.<\/li>\r\n<li aria-level=\"1\"><strong>Compliance with ownership caps: <\/strong>In sensitive sectors where foreign ownership is limited, the shareholding structure must comply with caps or special conditions.<\/li>\r\n<\/ul>\r\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"How_to_Classify_FDI_Capital\"><\/span>How to Classify FDI Capital?<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p style=\"text-align: justify;\">For financial planning and risk management, both investors and policymakers often classify FDI capital into distinct categories. Common classifications include:<\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li aria-level=\"1\"><strong>Equity capital: <\/strong>Capital contributions and share purchases that give the foreign investor an ownership stake in the Vietnamese enterprise.<\/li>\r\n<li aria-level=\"1\"><strong>Reinvested earnings:<\/strong> Profits that foreign investors choose to retain and reinvest in the local company instead of repatriating.<\/li>\r\n<li aria-level=\"1\"><strong>Intra\u2011company loans: <\/strong>Long\u2011term loans from parent companies or affiliated entities abroad that finance local operations, expansions, or working capital.<\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\">Vietnam\u2019s FDI statistics also distinguish between newly registered capital, adjusted capital for existing projects, and capital contributed or shares purchased, which helps investors track how much of the inflow comes from new entrants versus expansions of existing manufacturers.<\/p>\r\n<figure id=\"attachment_9807\" aria-describedby=\"caption-attachment-9807\" style=\"width: 1160px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-9807\" src=\"https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-3.png\" alt=\"3 Ways to Classify FDI Capital\" width=\"1160\" height=\"650\" srcset=\"https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-3.png 1160w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-3-300x168.png 300w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-3-1024x574.png 1024w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-3-768x430.png 768w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-3-600x336.png 600w\" sizes=\"(max-width: 1160px) 100vw, 1160px\" \/><figcaption id=\"caption-attachment-9807\" class=\"wp-caption-text\">3 Ways to Classify FDI Capital<\/figcaption><\/figure>\r\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Key_Manufacturing_Industries_Attracting_FDI_in_Vietnam\"><\/span>Key Manufacturing Industries Attracting FDI in Vietnam\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p style=\"text-align: justify;\">Vietnam\u2019s manufacturing sector presents diverse opportunities across multiple industries, each offering unique advantages and growth potential.\u00a0<\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li aria-level=\"1\"><strong>Electronics and components manufacturing:<\/strong><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\">The electronics sector represents the largest and most successful manufacturing industry for FDI in Vietnam. The country has become a major production hub for smartphones, computers, and electronic components, attracting investments from global technology leaders. Samsung\u2019s massive operations have catalyzed broader ecosystem development, with numerous suppliers and component manufacturers establishing Vietnamese operations to serve major assemblers.<\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li aria-level=\"1\"><strong>Automotive parts and precision engineering:<\/strong><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\">Vietnam\u2019s automotive sector has experienced significant growth, driven by both domestic market expansion and regional export opportunities. Major Japanese manufacturers like Toyota, Honda, and Mazda have established production facilities, while Korean companies, including Hyundai, have made substantial investments. The sector focuses primarily on passenger vehicles and motorcycles, with Vietnam being one of the world\u2019s largest motorcycle markets.<\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li aria-level=\"1\"><strong>Textiles, garments, and footwear:<\/strong><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\">Vietnam\u2019s textile and garment industry has evolved from basic manufacturing to sophisticated production capabilities serving global fashion and sportswear brands. The sector benefits from comprehensive free trade agreements that provide preferential access to major markets, including the United States, the European Union, and other CPTPP member countries. This market access, combined with competitive production costs, has attracted significant FDI from textile and garment companies.<\/p>\r\n<p style=\"text-align: justify;\">The footwear industry represents another success story, with Vietnam becoming the world\u2019s second-largest footwear exporter after China. Major brands like Nike, Adidas, and Puma have established significant manufacturing presence, often through partnerships with Taiwanese and Korean companies that bring advanced production technologies and management expertise.<\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li aria-level=\"1\"><strong>Supporting industries and industrial materials:<\/strong><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\">Vietnam prioritizes the development of supporting industries as a key driver of its industrial growth. The government promotes foreign direct investment in machinery, industrial materials, and specialized components to meet rising domestic demand. Sectors like metal processing, plastics, rubber, and chemicals attract significant FDI, serving both local manufacturers and export markets, while benefiting from regional supply chain integration within Vietnam\u2019s expanding manufacturing ecosystem.<\/p>\r\n<figure id=\"attachment_9813\" aria-describedby=\"caption-attachment-9813\" style=\"width: 1160px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-9813\" src=\"https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-5.png\" alt=\"Key Manufacturing Sectors Attracting FDI in Vietnam\" width=\"1160\" height=\"650\" srcset=\"https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-5.png 1160w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-5-300x168.png 300w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-5-1024x574.png 1024w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-5-768x430.png 768w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-5-600x336.png 600w\" sizes=\"(max-width: 1160px) 100vw, 1160px\" \/><figcaption id=\"caption-attachment-9813\" class=\"wp-caption-text\">Key Manufacturing Sectors Attracting FDI in Vietnam<\/figcaption><\/figure>\r\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"FDI_Trends_Reshaping_Vietnams_Manufacturing_Industry\"><\/span>FDI Trends Reshaping Vietnam&#8217;s Manufacturing Industry\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p style=\"text-align: justify;\">Vietnam\u2019s rise as a premier manufacturing hub is driven by its strategic coastal location, deep-water ports, and a robust network of over 370 industrial parks. This strong foundation has integrated Vietnam into global supply chains, attracting tech giants and driving record-breaking foreign direct investment (FDI). With the manufacturing sector consistently absorbing over 80% of recent inflows, Vietnam&#8217;s FDI landscape is rapidly evolving through three key trends:<\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li aria-level=\"1\"><strong>Shift to High-Tech:<\/strong> Moving away from traditional labor-intensive models, investments are now heavily targeting automation, advanced manufacturing, and high-value electronics.<\/li>\r\n<li aria-level=\"1\"><strong>&#8220;Vietnam Plus One&#8221; Diversification: <\/strong>Major regional players, particularly from Japan and Korea, are expanding their manufacturing presence to mitigate supply chain risks and ensure global market access.<\/li>\r\n<li aria-level=\"1\"><strong>Sustainable Investment: <\/strong>As investors strictly prioritize ESG commitments, Vietnam is accelerating its transition toward green manufacturing, renewable energy, and carbon-neutral facilities.<\/li>\r\n<\/ul>\r\n<figure id=\"attachment_9816\" aria-describedby=\"caption-attachment-9816\" style=\"width: 1160px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-9816\" src=\"https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-6.png\" alt=\"The impact of FDI trends on Vietnam's manufacturing and business sectors\" width=\"1160\" height=\"650\" srcset=\"https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-6.png 1160w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-6-300x168.png 300w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-6-1024x574.png 1024w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-6-768x430.png 768w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-6-600x336.png 600w\" sizes=\"(max-width: 1160px) 100vw, 1160px\" \/><figcaption id=\"caption-attachment-9816\" class=\"wp-caption-text\">The impact of FDI trends on Vietnam&#8217;s manufacturing and business sectors<\/figcaption><\/figure>\r\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Government_Policies_Supporting_FDI_in_the_Manufacturing_Sector\"><\/span>Government Policies Supporting FDI in the Manufacturing Sector\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p style=\"text-align: justify;\">Vietnam\u2019s government has implemented robust policies to attract foreign direct investment (FDI), focusing on industrial development and economic modernization. Attractive incentives, including reduced corporate tax rates and import duty exemptions, encourage investments involving technology transfer, export production, or projects in less-developed areas.<\/p>\r\n<p style=\"text-align: justify;\">Special Economic Zones (SEZs) such as Van Don and Phu Quoc provide favorable conditions with streamlined administrative procedures, improved infrastructure, and investment protection. Recent regulatory reforms, including a revised Investment Law and digital transformation initiatives, have simplified licensing and enhanced transparency for foreign investors.<\/p>\r\n<p style=\"text-align: justify;\">Competition among provinces like Binh Duong, Dong Nai, and Ba Ria-Vung Tau has driven innovative approaches to attract manufacturing FDI. These provinces offer improved infrastructure, additional incentives, and specialized services, developing sector expertise and supplier networks to better support investors.<\/p>\r\n<p style=\"text-align: justify;\">Comprehensive support services are available at both national and local levels, facilitating connections, administrative assistance, and information for foreign investors. The presence of specialized professional service providers, including legal and consulting firms, further helps investors navigate regulations and establish efficient operations in Vietnam\u2019s manufacturing sector.<\/p>\r\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Challenges_and_Considerations_for_Investors_in_the_Manufacturing_Sector\"><\/span>Challenges and Considerations for Investors in the Manufacturing Sector<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p style=\"text-align: justify;\">While Vietnam offers compelling opportunities for manufacturing FDI, investors must carefully consider various challenges and requirements to ensure successful operations.<\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li aria-level=\"1\"><strong>Skilled workforce development needs:<\/strong><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\">Vietnam\u2019s rapid industrial development has created skill gaps in certain technical and managerial areas, requiring investors to invest in training and development programs. While the country produces large numbers of engineering and technical graduates, many require additional training to meet international manufacturing standards and advanced technology requirements. Successful foreign manufacturers have addressed this challenge through partnerships with local universities, the establishment of training centers, and comprehensive internal development programs. Companies that invest in workforce development often find that these programs create competitive advantages and improve employee retention rates.<\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li aria-level=\"1\"><strong>Supply chain localization requirements:<\/strong><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\">Vietnam\u2019s industrial development strategy includes requirements for supply chain localization in certain sectors, particularly automotive manufacturing. While these requirements can create challenges for foreign investors, they also present opportunities for suppliers and component manufacturers to establish Vietnamese operations serving growing domestic markets. Understanding and planning for localization requirements enables investors to develop comprehensive strategies that comply with regulations while building competitive supplier networks.\u00a0<\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li aria-level=\"1\"><strong>Infrastructure and logistics considerations:<\/strong><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\">While Vietnam\u2019s infrastructure has improved significantly, investors must carefully evaluate logistics and utility availability for specific locations and industries. Power supply reliability, water availability, and transportation access can vary significantly between regions and industrial parks. Successful investors conduct thorough due diligence on infrastructure conditions and often work with industrial park developers to ensure adequate facilities for their operations. Planning for infrastructure requirements early in the investment process helps avoid delays and additional costs during project implementation.<\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li aria-level=\"1\"><strong>Cultural and business practice insights:<\/strong><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\">Understanding Vietnamese business culture and practices is essential for successful operations and partnership development. Building relationships with local partners, suppliers, and government officials requires time and cultural sensitivity. Language barriers and different business practices can create challenges, but also opportunities for companies that invest in cultural understanding.<\/p>\r\n<figure id=\"attachment_9819\" aria-describedby=\"caption-attachment-9819\" style=\"width: 1160px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-9819\" src=\"https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-7.png\" alt=\"Consider FDI for the private sector in manufacturing\" width=\"1160\" height=\"650\" srcset=\"https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-7.png 1160w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-7-300x168.png 300w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-7-1024x574.png 1024w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-7-768x430.png 768w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2025\/06\/fdi-7-600x336.png 600w\" sizes=\"(max-width: 1160px) 100vw, 1160px\" \/><figcaption id=\"caption-attachment-9819\" class=\"wp-caption-text\">Consider FDI for the private sector in manufacturing<\/figcaption><\/figure>\r\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"FBC_ASEAN_%E2%80%93_Connecting_Manufacturing_Investment_Businesses\"><\/span>FBC ASEAN &#8211; Connecting Manufacturing Investment Businesses<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p style=\"text-align: justify;\">FBC ASEAN is an international manufacturing trade exhibition and B2B networking platform that brings together hundreds of exhibitors and thousands of professional visitors from Vietnam, Japan, and across the region. At recent editions, the event has hosted around 500 booths and more than 13,000 visitors, generating thousands of business\u2011matching sessions between foreign and local manufacturers.\u200b<\/p>\r\n<p style=\"text-align: justify;\"><strong>For businesses and exhibitors, FBC ASEAN will provide:<\/strong><\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li aria-level=\"1\">Direct access to over 800 manufacturers and solution providers across key sectors such as electronics, metalworking, plastics, rubber, and machinery.\u200b\u200b<\/li>\r\n<li aria-level=\"1\">A hybrid online\u2011offline platform that supports pre\u2011event matching, on\u2011site meetings, and post\u2011event follow\u2011up to maximize deal conversion.\u200b\u200b<\/li>\r\n<li aria-level=\"1\">Market intelligence on Vietnam\u2019s FDI landscape, emerging industrial clusters, and real supplier capabilities that are often difficult to verify remotely.<\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\">By joining FBC ASEAN, foreign investors can shorten their learning curve, validate potential partners, and build a reliable, localized supply chain for regional or global manufacturing programs.\u200b<\/p>\r\n<p style=\"text-align: justify;\">P<strong>erfect your supply chain with trusted partners at FBC ASEAN. Click the banner to register!<\/strong><\/p>\r\n<p style=\"text-align: center;\"><a href=\"https:\/\/fbcasean.vn\/dang-ky-tham-quan\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-9769\" src=\"https:\/\/fbcasean.vn\/wp-content\/uploads\/2026\/03\/fbc-asean-en.jpg\" alt=\"Register to visit the FBC ASEAN 2026 exhibition\" width=\"1536\" height=\"569\" srcset=\"https:\/\/fbcasean.vn\/wp-content\/uploads\/2026\/03\/fbc-asean-en.jpg 1536w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2026\/03\/fbc-asean-en-300x111.jpg 300w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2026\/03\/fbc-asean-en-1024x379.jpg 1024w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2026\/03\/fbc-asean-en-768x285.jpg 768w, https:\/\/fbcasean.vn\/wp-content\/uploads\/2026\/03\/fbc-asean-en-600x222.jpg 600w\" sizes=\"(max-width: 1536px) 100vw, 1536px\" \/><\/a><\/p>\r\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_about_Foreign_Direct_Investment_FAQ\"><\/span>Frequently Asked Questions about Foreign Direct Investment (FAQ)\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"How_to_Differentiate_Between_FDI_and_FPI\"><\/span>How to Differentiate Between FDI and FPI?<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n<p style=\"text-align: justify;\">FDI involves foreign investors gaining active management control and a lasting interest in a business (e.g., building a factory). In contrast, FPI is a passive investment in foreign financial assets, such as stocks or bonds, without holding operational control.<\/p>\r\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"What_is_the_difference_between_FDI_and_ODA\"><\/span>What is the difference between FDI and ODA?<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n<p style=\"text-align: justify;\">FDI is driven by private foreign investors seeking business profits and market expansion. ODA (Official Development Assistance) consists of aid or low-interest loans provided by governments or international agencies to promote the economic development and welfare of developing countries.<\/p>\r\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"What_is_FDI_capital\"><\/span>What is FDI capital?<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n<p style=\"text-align: justify;\">FDI capital refers to the tangible and intangible assets, such as financial funds, machinery, technology, and intellectual property, that foreign investors transfer into a host country to establish or expand business operations.<\/p>\r\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"What_is_FDI_investment_consulting\"><\/span>What is FDI investment consulting?<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n<p style=\"text-align: justify;\">It is a professional advisory service that guides foreign investors through the complexities of entering a new market, offering expertise in legal compliance, market research, site selection, and business registration to ensure a successful setup.<\/p>\r\n<p style=\"text-align: justify;\">Foreign Direct Investment (<strong>FDI<\/strong>) is rapidly transforming Vietnam into a high-value manufacturing hub, offering attractive opportunities for strategic supply chain diversification. Join <a href=\"https:\/\/fbcasean.vn\/\" target=\"_blank\" rel=\"noopener\"><strong>FBC ASEAN<\/strong><\/a> today to accelerate market entry, strengthen your supply chain, and turn your FDI strategy into a profitable reality!<\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>Vietnam\u2019s FDI landscape is rapidly expanding, offering immense manufacturing opportunities amid global supply chain shifts. Despite infrastructure and regulatory hurdles, join FBC ASEAN as we explore the strategic policies transforming Vietnam into a premier FDI destination. What is Foreign Direct Investment (FDI)?\u00a0 Foreign direct investment (FDI) is a long\u2011term investment made by a foreign individual [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":9822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"two_page_speed":[],"footnotes":""},"categories":[14],"tags":[],"class_list":["post-7870","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/fbcasean.vn\/en\/wp-json\/wp\/v2\/posts\/7870","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fbcasean.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fbcasean.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fbcasean.vn\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fbcasean.vn\/en\/wp-json\/wp\/v2\/comments?post=7870"}],"version-history":[{"count":0,"href":"https:\/\/fbcasean.vn\/en\/wp-json\/wp\/v2\/posts\/7870\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fbcasean.vn\/en\/wp-json\/wp\/v2\/media\/9822"}],"wp:attachment":[{"href":"https:\/\/fbcasean.vn\/en\/wp-json\/wp\/v2\/media?parent=7870"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fbcasean.vn\/en\/wp-json\/wp\/v2\/categories?post=7870"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fbcasean.vn\/en\/wp-json\/wp\/v2\/tags?post=7870"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}