Vietnam is a model for attracting FDI in Asia

Song Minh |

Foreign direct investment (FDI) continues to pour strongly into Vietnam, focusing on the fields of electronics, industrial components and green production.

The long-term restructuring process of global supply chains is becoming increasingly clear, forcing international businesses to seek safer, more stable and more efficient destinations for their production networks.

In that context, Vietnam emerged as an attractive option, increasingly playing an important role in the "risk reduction" strategy of multinational corporations.

This trend is clearly shown through the flow of foreign direct investment (FDI) continuing to pour strongly into Vietnam, focusing on the fields of electronics, industrial components and green production - according to Fast Bull (Hong Kong, China).

Not only supplementing financial resources, FDI capital flows also contribute to improving technological capacity, management level and production standards, thereby improving the quality as well as the sustainability of Vietnam's industry.

Analysis by foreign investment news site FDI Intelligence (UK) suggests that many Asian economies, of which Vietnam is a typical example, are effectively exploiting FDI investment capital as a key driving force for long-term growth.

According to this assessment, countries such as Singapore, South Korea and Vietnam have built solid trust with investors thanks to consistent governance systems, increasingly transparent legal frameworks and reforms towards business friendliness.

In addition, high-quality infrastructure - from economic zones and special economic zones to increasingly complete logistics networks - plays an important role in enhancing investment attractiveness.

Skilled human resources with competitive costs are also a major advantage, helping Vietnam not only attract FDI in quantity but also gradually improve the quality of capital flows.

In the context of the global supply chain continuing to shift and diversify, Vietnam is gradually affirming its position as a strategic destination, converging many elements of an effective FDI attraction "formula" in Asia.

Effective FDI attraction has helped Vietnam's manufacturing sector continue its strong growth momentum. According to the announcement of S&P Global (a financial analysis group based in the US), the Purchasing Managers' Index (PMI) of Vietnam's manufacturing sector ended the year at 53.0 points, higher than the threshold of 50 points - the line between decline and growth. This result shows that the health of the manufacturing sector has improved significantly compared to the previous month and has maintained a positive trend for the past 6 months.

Notably, business confidence of manufacturing enterprises reached the highest level in 21 months. Companies continued to increase output thanks to increased new orders, while more favorable weather conditions also helped increase operating capacity. Employment in the manufacturing industry continued to expand, contributing to reducing backlog of work.

Overall, Vietnam's manufacturing industry enters 2026 in a positive position. Manufacturers express optimism about the ability to attract more new orders as well as expand production capacity. S&P Global forecasts that Vietnam's industrial output may increase by 6.7% in 2026, reflecting a fairly solid growth prospect.

Song Minh
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