Vietnam’s foreign direct investment (FDI) landscape is undergoing a significant qualitative transformation, with a notable increase in capital flowing into service sectors, according to the country’s 2025 Annual Report on Foreign Direct Investment. This shift marks a new era for Vietnam’s economic groups, as the nation mobilizes resources for development.

The report highlights a growing trend of FDI being directed towards areas such as real estate, wholesale-retail, logistics, science-technology, waste treatment, and accommodation services. This evolution reflects Vietnam’s deep integration into international trade, which has expanded its market scale and fostered intense competitive pressure. The increased competition is, in turn, driving technological upgrading and improvements in governance across various industries.

 

 

FDI firms continue to be a cornerstone of Vietnam’s export economy and a major contributor to its trade surpluses. In 2025, these enterprises accounted for an impressive 77.3% of Vietnam’s total exports, amounting to $367.09 billion. This substantial contribution underscores the critical role foreign investment plays in the country’s international trade performance.

 

 

However, the report also points to a persistent challenge: domestic firms remain largely concentrated in low value-added segments of the economy. This concentration has resulted in a trade deficit for domestic companies, which stood at $29.43 billion in 2025. The qualitative shift in FDI towards higher value-added service sectors presents both an opportunity and a challenge for Vietnam’s domestic enterprises, urging them to innovate and upgrade to compete effectively in the evolving market.

 

 

For international businesses, Vietnam’s strategic integration and the evolving nature of its FDI inflows signal a maturing market with diverse opportunities beyond traditional manufacturing. The focus on services, coupled with a commitment to technological advancement and improved governance, positions Vietnam as an attractive destination for investors seeking growth in dynamic sectors. The ongoing efforts to unlock and mobilize resources are expected to further bolster the development of Vietnam’s leading economic groups, driving sustained growth in the new era.

 

 

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