Foreign Direct Investment in Vietnam: What the 2026 Numbers Tell Investors

Foreign direct investment into Vietnam reached US$24.8 billion in the first five months of 2026 — a rise of 34.9% on the same period last year. For investors weighing a Vietnam entry, the headline is encouraging. But the numbers underneath tell a more useful story about where capital is going, who is bringing it, and what stands between a registered project and an operating one.

This article breaks down the Ministry of Finance's five-month data and sets it against the legal framework that now governs how foreign capital enters the country.

The headline hides the real signal

Total registered capital combines three flows: new projects, adjustments to existing projects, and capital contributions or share purchases. According to the Foreign Investment Agency under the Ministry of Finance, all three moved in different directions.

New registered capital reached US$14.8 billion — a jump of 111.5% year on year. Capital adjustments to existing projects fell 38.4%. Capital contributions and share purchases rose 46.7% in value to US$4.1 billion, even as the number of deals fell 14.3%.

Read together, the pattern is clear. Growth is being driven by fresh commitments to new ventures, not by follow-on funding of projects already in place. Investors are choosing Vietnam as a new destination, and the acquisition route is producing fewer but larger transactions.

Where the money is coming from — and why China now matters

Eighty-one countries and territories invested in Vietnam over the five months. Singapore led by value with US$8.5 billion, 34.5% of the total. South Korea followed with US$6.7 billion, 27%. Between them, the two traditional source markets supplied more than 60% of registered capital.

China: from trade partner to top direct investor

The more important shift sits lower in the table. China ranked only third by registered capital, at US$2.1 billion. By activity, it ranked first. Chinese investors registered 535 new projects — more than any other market — and led every source market in share purchases, with 315 transactions.

Hong Kong ranked fourth by value at US$2 billion, up 90.5% year on year. Combined, Greater China capital rivals the single largest source market.

The contrast with the cumulative record is telling. Across all live projects to date, the largest investors are South Korea, Singapore, Japan, Taiwan and Hong Kong — China does not sit in the top five. In other words, China's direct investment into Vietnam is a recent and accelerating trend, not a long-established one.

For years, China has been Vietnam's largest trade partner. In 2026 it is also one of the most active sources of direct investment on the ground. Much of that capital is manufacturing capacity relocating into Vietnam to serve export markets — the "China+1" strategy, now flowing into Vietnam itself.

That brings a specific diligence point. Export-oriented projects with Chinese ownership attract closer scrutiny on rules of origin and substantial transformation, given tariff policy in major export markets. Genuine local value-add, not final assembly alone, is what protects the structure. Investors structuring these projects should treat origin analysis as a threshold question, not an afterthought.

Where the money is going: sectors and provinces

Processing and manufacturing dominated by sector, drawing US$15 billion — 60.5% of all registered capital. Power generation and distribution came second at 10.3%, followed by wholesale and retail, real estate, and professional, scientific and technical activities.

By destination, the concentration was sharp. Thai Nguyen overtook Ho Chi Minh City as the top province, attracting US$7.6 billion — 30.7% of national capital — on the back of large electronics and semiconductor projects. Ho Chi Minh City followed with US$4.1 billion, and Nghe An with US$2.3 billion.

Ho Chi Minh City still led by deal count, with the most new projects and the most share purchases. The picture is one of large-ticket manufacturing capital flowing to emerging northern industrial hubs, while established commercial centres continue to generate the highest volume of transactions.

The gap between registered and realised capital

The single number investors should not overlook is the gap between what was registered and what was actually put to work. Realised capital rose just 9.6% to US$9.7 billion — far behind the 34.9% rise in registered capital.

This is not a one-off. Across all valid projects, cumulative disbursed capital sits at roughly 66% of registered capital. Registering an investment and operating it are two different problems, and the distance between them is where most Vietnam entries lose time.

What this means for investors entering Vietnam

The data confirms appetite. Converting appetite into an operating project is the part that rewards planning.

Market access under the 2025 Investment Law

Vietnam's Investment Law 2025 (Law No. 143/2025/QH15), together with Decree 96/2026/ND-CP, moved the country to a Negative List for market access. Sectors are either prohibited, conditional, or open to foreign investors on national-treatment terms.

For projects in the transitional phase, the new framework is still bedding in. That creates timing risk on three points that most often stall a Vietnam entry: the licensing sequence, sector classification, and foreign ownership caps. Each should be resolved before capital is committed, not during implementation.

Practical takeaways

Three points matter most for investors acting on these trends:

(1) Classify the target's primary revenue line early. Under the lowest-cap rule, a company with several business lines is held to the most restrictive foreign ownership limit that applies to any one of them. This single step determines whether a proposed stake is achievable.

(2) Run the market-access analysis before signing. If you are entering by acquisition, the share-purchase route remains strong. But sector classification and ownership limits should be confirmed before the deal is structured, not renegotiated afterward. Our note on Vietnam's FDI licensing process sets out the sequence in detail.

(3) Plan for the implementation phase. The registered-to-realised gap is where projects stall. Land, construction permits, energy connection, and fire-safety approvals are the usual pressure points. Build these into the timeline from the outset, alongside the M&A and share acquisition steps that govern the entry itself.

Vietnam remains the destination investors are choosing as supply chains diversify and capital recirculates within Asia. The registered numbers confirm the momentum. The realised numbers are a reminder that execution — not registration — is what turns a licence into a business.

How Dilinh Legal can help

For advice on how these trends affect your Vietnam investment or acquisition, contact Dilinh Legal at contact@dilinh.com. We advise foreign investors on market access, FDI licensing, and share acquisitions across all major sectors.

Diep Hoang is the Founding Partner of Dilinh Legal, a business law firm in Ho Chi Minh City. She founded the firm in 2010 and has built it into one of Vietnam's leading practices in Corporate and M&A. Diep has been ranked by Chambers as a leading lawyer in Corporate & M&A since 2020. Dilinh Legal is ranked by Chambers Asia in Corporate & M&A, Dispute Resolution, and Labour & Employment, and by Legal500 in Corporate & M&A and Dispute Resolution.

This article is for general information only and does not constitute legal advice. For further information, please contact Dilinh Legal at contact@dilinh.com | +84 (28) 73000864 | dilinh.com