Foreign investment significantly increases by a factor of 3.5 in the initial seven months
Vietnamese Businesses Expand Overseas Investments in First Half of 2025
Vietnamese businesses have shown a significant increase in overseas investments in the first half of 2025, according to the Foreign Investment Agency under the Ministry of Finance. The number of new overseas ventures launched by Vietnamese enterprises has tripled compared to the same period last year, reaching 86 new ventures.
The US, Germany, Laos, Indonesia, and the Philippines are among the top destinations for Vietnamese investments. Germany received $50.6 million, accounting for 9.6% of the total, while the US received $31.2 million, making up 5.9% of the total. Laos received the most Vietnamese investments with $150.3 million, accounting for 28.4% of the total.
The manufacturing and processing sector accounts for the majority of Vietnamese overseas investment, with investments worth $11.1 billion, making up 81.6% of the total overseas investment. The electricity, gas, steam, and air conditioning supply sector also saw a growth in investments, with $505.2 million invested in the first four months of 2025, a notable increase from the same period last year. Real estate activities also experienced an increase, with $1.09 billion invested, accounting for 8% of the total overseas investment.
One of the most notable overseas ventures is VinFast, Vietnam’s leading electric vehicle (EV) manufacturer, which inaugurated its EV assembly plant in Thoothukudi, Tamil Nadu, India, on August 4, 2025. This plant marks VinFast's first facility outside Vietnam and is a key part of the company’s global expansion and commitment to the Indian market. The plant represents a $500 million initial project, which is part of a broader $2 billion planned investment in India and wider Asian expansion over this period.
The new assembly plant covers 400 acres at the SIPCOT Industrial Park and features state-of-the-art production lines with advanced automation. It is designed to eventually create an industrial cluster with local contractors. Initial production is planned at 50,000 electric vehicles annually, with capacity expandable to 150,000 units per year. The factory’s location near a major port supports VinFast’s aim to use it as an export hub for India and neighboring Asian markets.
Vietnam also attracted $24.09 billion in foreign direct investment (FDI) capital, a 27.3% increase from the same period last year. The growing trend of Vietnamese outbound investment is evident, with Vietnamese businesses investing in 43 overseas ventures in the first four months of 2025, a significant increase from the same period last year.
In addition to VinFast, other sectors such as transport and warehousing, wholesale and retail trade, motor vehicle, and motorcycle repair have also seen investments. Transport and warehousing received $109.1 million, making up 20.6% of the total investment, while the wholesale and retail trade, motor vehicle, and motorcycle repair sector received $78.1 million, representing 14.8% of the total investment.
Overall, the increase in overseas investments by Vietnamese businesses signals a growing commitment to global expansion, particularly in the manufacturing and EV sectors. The trend is expected to continue in the second half of 2025, with more Vietnamese businesses looking to invest overseas.
References: [1] VinFast. (2025). VinFast inaugurates electric vehicle assembly plant in India. Retrieved from www.vinfast.com [2] Reuters. (2025). VinFast to invest $2 billion in India, eyes export hub. Retrieved from www.reuters.com [3] Foreign Investment Agency. (2025). Vietnamese enterprises launch 86 new overseas ventures in first half of 2025. Retrieved from www.fia.gov.vn [4] National Statistics Office. (2025). Vietnam's outbound investment reaches $317.3 million in first five months of 2025. Retrieved from www.nso.gov.vn
- In the ongoing global expansion of Vietnamese businesses, the finance sector will likely contribute to the funding of these ventures in the manufacturing, EV, and other targeted industries.
- The growth in overseas investments by Vietnamese businesses in the first half of 2025 demonstrates a significant shift in the focus of the industry, as firms seek to secure a foothold in the finance and business landscape of major economies such as the US and Germany.
