Bac Ninh province, which led Vietnam’s foreign direct investment (FDI) inflows in 2024, continues to dominate in early 2025.

With over $1.39 billion in newly registered FDI, the province outpaced all others, reaffirming its status as Vietnam’s top investment destination.

FDI surges in January 2025, Bac Ninh leads the way

According to the latest report from the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, Vietnam attracted $4.33 billion in total registered FDI in January 2025. This marks a 48.6% increase compared to the same period in 2024.

This total includes 282 newly registered projects, though the number declined by 6.6% from last year. However, total registered capital for new projects dropped by 43.6%, reaching nearly $1.29 billion.

Meanwhile, 137 projects received additional capital, an increase of 4.6%, with $2.73 billion in adjusted investment, nearly 6.1 times higher than the previous year.

In terms of capital disbursement, approximately $1.51 billion was realized in January 2025, reflecting a 2% year-on-year increase.

Manufacturing and real estate remain top sectors for foreign investment

Foreign investors have injected capital into 16 out of 21 economic sectors. The manufacturing and processing industry remains the most attractive, absorbing over $3.09 billion - accounting for 71.3% of total FDI and representing a 99.1% increase year-on-year.

Real estate ranked second, receiving $1.09 billion, which represents 23.5% of total FDI. However, this marks a 6.4% decrease compared to the previous year.

Foreign investors have funneled capital into 39 provinces and cities across Vietnam in January 2025, with Bac Ninh emerging as the top recipient. The province recorded an FDI increase of $1.39 billion, accounting for 32.2% of total investment nationwide - nearly 6.1 times higher than the same period last year.

This continues Bac Ninh’s dominance from 2024, when it attracted nearly $5.12 billion in total FDI, making up 13.4% of the country’s total - more than 2.8 times the amount from 2023.

Following Bac Ninh, Dong Nai ranked second with $959 million, comprising 22.1% of total FDI, reflecting a 3.4-fold increase from last year. Hanoi came in third with $716.4 million, making up 16.8% of total FDI, a 1.9% increase from the previous year. Other key investment destinations include Ho Chi Minh City, Hai Phong, and Binh Duong.

South Korea tops the list of foreign investors

In January, 55 countries and territories invested in Vietnam. South Korea led the pack, with $1.25 billion in total investment, accounting for 28.9% of FDI - 13.4 times more than the previous year.

Singapore ranked second, with $1.24 billion in FDI, representing 28.7% of total investment - a 1.1% increase. Japan and China followed closely behind.

In terms of project volume, China had the highest number of newly registered projects, accounting for 30.1%. South Korea led in capital adjustments, making up 19%, and also dominated in capital contributions and share purchases, accounting for 25.4%.

Meanwhile, Vietnamese outbound investments also surged. In January 2025, local firms invested $83 million overseas, which is 5.1 times higher than the previous year. This included 10 newly registered projects, though no existing projects received additional capital.

Nguyen Le