Dynamics Top FDI Companies in Vietnam in 2025: Singapore, Korea, Taiwan Lead Investment Surge

Vietnam’s ascent as a Southeast Asian manufacturing and trade hub has been underpinned by robust foreign direct investment (FDI), with FDI companies in Vietnam playing a central role in shaping the country’s industrial and export capacity. In 2024, total FDI pledges reached approximately $38.2 billion, with actual disbursements hitting a record $25.35 billion (up 9.4% year-on-year).

While overall registered FDI was marginally lower than in 2023, the surge in capital from Asian economies has solidified the position of many FDI companies in Vietnam. Investors from Singapore, South Korea, China, Japan, Malaysia, and Taiwan collectively accounted for nearly three-quarters of all FDI inflows — dominating both the number of new projects and total investment value. This article analyzes key trends, top FDI company in Vietnam contributors, and sectoral priorities as of August 2025. 

Singapore: Capital-Intensive Innovation Leader

Singapore solidified its position as Vietnam’s top FDI source in 2024. Many of the most strategic FDI companies in Vietnam today are Singaporean-led, including Sembcorp, CapitaLand, and Sea Group. FDI from Singapore totaled nearly $10.2 billion, about 26–29% of Vietnam’s FDI that year. This represented a surge of over 30% from 2023 levels.

Cumulatively, Singapore’s investments in Vietnam now exceed $84 billion across roughly 3,950 projects, making it Vietnam’s second-largest foreign investor overall (after South Korea). Notably, about two-thirds of Singapore’s 2024 capital went into new projects, with the rest channelled into expansions of existing operations. This mix signals both fresh investment and sustained confidence via reinvestment.

Sectoral focus

Strategic implications

High Contribution to GDP

Singaporean capital is estimated to contribute ~8% of Vietnam’s GDP, largely through:

• Export-oriented projects

• Industrial parks and manufacturing zones (e.g., VSIP network)

Industrial Know-How Transfer

• Flagship joint ventures like VSIP help bring in:

  • Industrial park development expertise

  • Sustainability practices and operational standards

Challenges in Local Integration

• Only ~12% of suppliers in VSIP zones are domestic firms

• This indicates limited local sourcing and technology transfer so far — a common issue across many FDI companies in Vietnam

South Korea: Electronics and Industrial Powerhouse

South Korea’s FDI companies in Vietnam, such as Samsung, LG, and Amkor, have collectively transformed Vietnam into a leading electronics export hub. Samsung alone produces 50% of its global smartphone output from Vietnam. By the end of 2024, Korean firms had invested over $92 billion across more than 10,100 projects in Vietnam, accounting for roughly 18% of Vietnam’s total registered FDI stock.

In 2024 alone, South Korean investors registered around $7.06 billion in Vietnam – a sharp increase of 37.5% year-on-year – making South Korea the second-largest source of FDI flows after Singapore. (If counting only new project registrations, South Korea contributed about $2.89 billion in new capital, or 14.6% of new FDI, in 2024, alongside major expansions of existing Korean projects. This continuing inflow underscores South Korea’s robust commitment to Vietnam even as global supply chains shift.

Strategic implications

Massive Export Contribution

• South Korean firms and their suppliers are responsible for ~30% of Vietnam’s total exports

  • Samsung alone contributes ~20% of national export turnover

Large-Scale Job Creation

• Korean-led FDI companies in Vietnam help employ ~8.5 million workers

• That’s about 23% of Vietnam’s formal workforce

Key Challenge: Limited Local Value-Add

• 80–85% of export inputs are imported, as foreign firms rely on global supply chains

• This creates an “enclave effect” where local firms are excluded from upstream activities

Innovation Gaps

• Vietnam’s R&D spending: ~0.4% of GDP

• South Korea’s R&D spending: 4.8%+ of GDP

• Vietnam’s labor productivity is only ~27% of Korea’s — highlighting a need to boost innovation capacity

China: High-Tech Manufacturing and Supply Chain Diversification

Chinese FDI companies in Vietnam tend to favor mid-sized manufacturing and electronics assembly projects. With over 950 new projects launched in 2024 alone, China is the leading source of new investment licenses. Chinese firms registered about US$4.73 billion of FDI in Vietnam in 2024, a slight 3% increase from the previous year.

This brought China’s cumulative FDI in Vietnam to roughly US$30.8 billion (1988–2024) across thousands of projects. Notably, China accounted for 28.3% of all new foreign projects in Vietnam in 2024 – the highest of any country. In fact, Chinese investors launched 955 new projects in 2024 alone, reflecting a strategy of numerous mid-sized ventures in Vietnam. While Chinese investment by value still lags behind South Korea or Singapore, its rapid growth and focus on manufacturing make it highly influential.

Strategic implications

Strong Contribution to Export Growth

• Chinese-invested enterprises account for ~15% of Vietnam’s recent export growth

• Much of this growth comes from upstream supply chains that feed into other FDI manufacturers

Broad Geographic Reach

• Many new Chinese projects are led by small and medium-sized enterprises (SMEs)

• These SMEs bring capital to non-core provinces, including:

  • Border areas

  • Central and hinterland regions

Geopolitical Sensitivities

• The U.S.–China trade war has pushed manufacturers toward Vietnam

• But this also creates uncertainty:

  • If tensions ease, investment flows may shift away

  • Chinese FDI is partially driven by short-term hedging strategies

Japan: Stable Investment and Infrastructure Partnerships

Japan has long been a stable and significant investor in Vietnam, known for high-quality projects and official development assistance (ODA). Japanese FDI companies in Vietnam are known for quality, sustainability, and human capital development. Their investments also complement Vietnam’s public infrastructure, with major support from JICA and private-sector giants like AEON and Mitsubishi. By 2024, Japan’s cumulative FDI in Vietnam was estimated at around US$74 billion across over 5,300 projects (placing it among the top three investors overall).

In terms of new investment, Japan saw a resurgence recently: in 2023, Japanese firms registered $6.57 billion of FDI in Vietnam (a 37% jump from 2022) according to Vietnam’s Ministry of Planning and Investment, and early 2024 continued that trend. For the first four months of 2024, Japan was Vietnam’s second-largest investor (after Singapore), with nearly $2.0 billion in FDI – about 22% of the total in that period. This suggests Japan’s full-year 2024 FDI likely reached around $3 billion (placing it 5th for the year, behind Hong Kong and others) – a plausible uptick given stronger Japan–Vietnam economic ties. Major Japanese projects span manufacturing, energy, and urban development.

Strategic implications

Highly Stable and Development-Oriented

• Japanese investment is known for long-term stability and institutional quality

• It plays a key role in Vietnam’s industrial upgrading and urban infrastructure development

Strong Focus on Human Capital

• Around 65% of Japanese-invested projects include training or technology transfer programs

• This supports skill development in sectors like:

  • Automotive engineering

  • Urban planning

  • Smart city infrastructure

Strategic Diversification of FDI Sources

• Japan acts as a counterbalance to Vietnam’s heavy reliance on Korean or Chinese capital

• The Japan–Vietnam Economic Partnership Agreement (EPA) and Extensive Strategic Partnership help:

  • Insulate economic ties from political volatility

  • Provide a legal framework for continued cooperation

Taiwan: Electronics and Supply Chain Catalyst

Taiwan’s contribution as an FDI company in Vietnam hub is most evident in electronics. Foxconn, Pegatron, and Compal are deeply embedded in Apple’s global supply chains — now shifting significantly toward Vietnam. Over the decades, Taiwanese FDI companies in Vietnam have invested roughly US$39–40 billion (cumulatively), making Taiwan one of Vietnam’s top five foreign investors by capital.

In 2024, Taiwan’s FDI in Vietnam is estimated at around $2.8 billion, driven by major projects in electronics manufacturing. This places Taiwan’s annual FDI on par with or slightly above Japan’s in some years, underscoring its importance. Notably, Vietnam Briefing reported that as of late 2023, “Taiwan ranks among the top investors” in Vietnam, buoyed by expanding tech investments.

Strategic implications

Key Enabler of Vietnam’s Export Competitiveness

• Taiwanese-invested firms contribute to ~12% of Vietnam’s electronics exports

• This positions Taiwan as the second-largest electronics FDI contributor, after South Korea

Global Export Rankings Improved

• Thanks to FDI companies in Vietnam like Foxconn, Pegatron, and others:

  • Vietnam became the #2 phone exporter globally

  • Ranked #10 in electronics exports by 2024

Formation of Supply Chain Clusters

• Taiwanese FDI companies in Vietnam bring entire ecosystems of component suppliers:

  • Example: When Foxconn or Pegatron set up in Bắc Giang or Hải Phòng, dozens of smaller Taiwanese and Chinese vendors followed

• These manufacturing clusters generate:

  • Job creation

  • Local procurement (where standards allow)

  • Knowledge diffusion, although still limited

Conclusion

Vietnam’s ascent as a Southeast Asian industrial powerhouse has been fueled by a dynamic array of FDI companies in Vietnam, whose investments—ranging from Singapore’s high-tech infrastructure and smart-city projects to Korea’s electronics exports, China’s expansive mid-sized manufacturing ventures, Japan’s quality-driven industrial and urban development, and Taiwan’s electronics and heavy-industry clusters—have not only elevated its export capacity but also catalyzed its economic transformation. While these foreign investors have injected tens of billions into Vietnam’s manufacturing, infrastructure, and innovation ecosystems, the country must now focus on strengthening domestic supply chains, boosting SME integration, ramping up R&D, and building an ecosystem that ensures broader, long-term benefits from FDI.

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