The Vietnamese Economic Indicator Soars to a Half-Decade High: A ‘Breakthrough Story’, Says International Expert.

According to experts, Vietnam is no longer merely a destination for cost-based investments but is steadily asserting its position as a regional leader in high-tech, green tech, and digital technology sectors.

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Vietnam Attracts its Highest Level of FDI in Six Years

The Global Business Forum 2025, hosted by RMIT University Vietnam in collaboration with the Southern Investment, Information and Investment Promotion Centre (SIPISC), the Foreign Investment Agency, and the Ministry of Finance, brought together government, academic, research, and business partners from Vietnam and abroad to discuss how the country is shaping the future of foreign direct investment (FDI) through strategic reforms and multilateral cooperation.

With the theme “Attracting FDI to Vietnam in the Age of Ascension: Multidimensional Dialogue for Breakthroughs,” the forum highlighted Vietnam’s transformation from a low-cost investment destination to a hub for innovation, sustainability, and digital transformation.

In the first half of 2025 alone, Vietnam attracted over $21.51 billion in FDI, a 32.6% increase compared to the same period in 2024. This growth was driven by sectors such as manufacturing, real estate, green technology, and scientific research.

According to Ms. Tran Thi Hai Yen, Director of SIPISC, despite global economic uncertainties, the total realized FDI in Vietnam in 2024 reached $25.35 billion, a 9.4% increase from the previous year and the highest level in six years.

This figure contrasts sharply with the global trend, as world FDI flows decreased by 11% to $1.5 trillion in 2024, according to UNCTAD’s report. Ms. Yen affirmed that this demonstrates Vietnam’s resilience and growing appeal to international investors.

“Vietnam’s FDI story is truly groundbreaking, underscoring the country’s increasingly prominent role as a hub for innovation and sustainable development in the region,” said Professor Robert McClelland, Head of RMIT Vietnam’s School of Business.

Ms. Tran Thi Hai Yen, Director of SIPISC (Photo: RMIT)

Vietnam’s Key to Attracting More Investors

At the forum, Mr. Alexander Ziehe, Chairman of the German Business Association (GBA), emphasized the importance of Vietnam to German investors.

He noted that according to the AHK’s Global Business Outlook Spring 2025 report, up to 80% of German businesses in Vietnam have a positive outlook on the business environment, and 38% plan to expand their operations in the next two years.

At the same time, he pointed out challenges such as complex administrative procedures and a shortage of high-quality human resources, while reaffirming GBA’s long-term commitment to Vietnam.

In a panel discussion involving international and domestic business associations, Mr. Sam Conroy, Chairman of the Australian Chamber of Commerce in Vietnam (AusCham), highlighted Australia’s growing interest in infrastructure investment and supply chain opportunities in Vietnam.

“Recent policy reforms have reduced risks for Australian investors, making Vietnam a more attractive destination,” shared Mr. Conroy.

Global Business Forum 2025 hosted by RMIT University Vietnam and partners (Photo: RMIT)

Mr. J.P. Shriram, Chairman of the Indian Chamber of Commerce in Vietnam (Incham), highlighted the untapped potential of FDI flows from India and called for a cooperative approach between the two countries, given their vibrant consumer markets and attractive investment destinations for each other.

Mr. Shriram emphasized the development of international financial centers in Ho Chi Minh City and Danang as crucial factors in attracting Indian investors to Vietnam.

Representing domestic enterprises, Mr. Huynh Thanh Van, Chairman of the National Advisory and Startup Support Council for the Southern Region and Chairman of S Furniture, shared how FDI partnerships are helping local businesses move up the value chain and encouraged young entrepreneurs to embrace innovation.

“Social responsibility should be a core value, not just an obligation,” emphasized Mr. Huynh Thanh Van.

Associate Professor Abel Alonso, a senior lecturer in the International Business program at RMIT Vietnam, spoke about the importance of building a “quality FDI culture” in Vietnam. He noted that in addition to incentives and infrastructure, transparent regulations, a business-friendly environment, and diversified investment sectors would provide reassurance to investors.

“Vietnam’s multilingual human resources and service sector potential could be a strategic advantage in the next wave of FDI,” Associate Professor Alonso predicted.

Dr. Dang Thao Quyen, Acting Deputy Head of Department – Teaching and Learning, and Head of Department – International Business, School of Business, broadened this perspective by emphasizing the role of multi-stakeholder collaboration in promoting quality FDI.

“Breakthroughs in Vietnam’s FDI attraction will not come from a single party,” she shared.

“We need a synergy between the government, domestic and foreign businesses, academia, and young professionals. Open dialogues where all parties listen, address bottlenecks, and take joint action will be key to achieving mutually beneficial outcomes,” Dr. Quyen added.

She also underlined the importance of shaping an FDI strategy that aligns with global trends in innovation and sustainable development.

“Vietnam needs to move beyond a transactional investment model and aim for strategic partnerships that can elevate the country’s position in the global value chain. This entails investing in human resources, digital infrastructure, and inclusive governance. The future of FDI in Vietnam is not just about capital attraction but also about commitment, creativity, and shared goals,” Dr. Quyen emphasized.

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