FDI capital still flows strongly into Vietnam

Production workers in the factory of LITEON VN Co., Ltd. - Photo: LITEON VN

According to data from the General Statistics Office, by the end of May 2025, newly registered capital, adjusted registered capital, and the value of capital contributions and share purchases by foreign investors reached 18.39 billion USD, up 51.2% over the same period last year. FDI capital implemented in Vietnam is estimated at 8.9 billion USD, up nearly 8%.

Expanding investment in Vietnam

Even at a time when the story of reciprocal taxes from the US was hot, in April 2025, LITEON - a large Taiwanese technology corporation - still decided to invest an additional 25 million USD to expand production in Vietnam, and at the same time planned to recruit a large number of experts and workers in Vietnam.

Exchange Tuoi Tre , Mr. Henry Chien, human resources director of LITEON VN Co., Ltd., said that this enterprise will increase the number of employees to about 8,000 people, compared to the current number of 5,000 employees.

In addition, LITEON has just broken ground on a factory in Song Khoai - Amata Industrial Park ( Quang Ninh ), 4 times larger in scale than the factory in VSIP Industrial Park Hai Phong , expected to come into operation around the end of 2026 with a workforce of about 20,000 people.

According to Mr. Henry Chien, this group determined to invest long-term in Vietnam based on its assessment of the potential and interest of the The Vietnamese government , the quality of human resources as well as clear development orientation in the future.

"When the Vietnamese Government is negotiating with the US Government, we understand that the tariff impact will not only affect LITEON but also other companies in the Vietnamese market. Therefore, we are trying to improve our capacity and adaptability to compete with other factories...", Mr. Henry Chien said, affirming that the Group has no plans to move its production line elsewhere, although it is determined that the tax increase may increase the cost of product components.

In addition to invested areas such as optics and electronics, LITEON representatives said that related items AIoT and semiconductors are also being deployed.

"We expect that in the coming time, Vietnam will continue to be an important manufacturing center, contributing to LITEON's high-value technology segments globally," said a representative of an FDI enterprise from Taiwan.

However, according to Mr. Henry Chien, this enterprise is facing certain difficulties related to administrative procedures, rapidly changing labor policies and especially the shortage of high-quality technical human resources in new industries such as semiconductor or automation. Therefore, Mr. Henry Chien suggested that Vietnam should continue to simplify administrative procedures, especially in the fields of investment, labor and import and export.

Strengthening the connection between businesses and training institutions to develop highly skilled human resources to meet the increasing demands of the global production chain, while improving support service infrastructure for workers.

"We believe that with strong reform orientation and support from the Government, the investment environment in Vietnam will become more and more attractive and sustainable in the future," Mr. Henry Chien affirmed.

Workers inside a factory of an FDI enterprise in the Ho Chi Minh City High-Tech Park - Photo: NGOC HIEN

What to do to attract more quality FDI capital?

Mr. Park Bong Kyu, Chairman of the Korean CEO Summit (an organization of 8,000 CEOs in Korea), said that many Korean enterprises are interested in implementing AI, IoT and big data solutions in urban planning in Vietnam, in addition to traditional fields. "With its strategic geographical location and open FDI attraction policy, Vietnam has attracted more than 36 billion USD of FDI from Korea in fields such as manufacturing, high technology and real estate," said Mr. Park Bong Kyu.

According to Mr. Park Bong Kyu, in addition to traditional fields such as manufacturing and electronics, Korean enterprises are focusing on high technology, renewable energy and especially smart cities. Some large corporations are interested in implementing AI, IoT and big data solutions in urban planning in Vietnam.

In addition, smart healthcare and digital education are also new areas in which Korean businesses want to cooperate, taking advantage of the similarities in sustainable development needs between the two countries.

Affirming his impression of pilot projects in Da Nang and Ho Chi Minh City, where IoT and AI are applied to manage traffic and urban resources, Mr. Park Bong Kyu said that Vietnam needs to promote the development of digital infrastructure such as investing in 5G networks and big data systems to support AI and IoT solutions.

To effectively absorb capital from Korea in this field, Vietnam needs to completely simplify the project approval process and increase transparency in FDI capital management.

"Korea has many valuable lessons from smart cities like Songdo and Sejong. Some models suitable for Vietnam include the integrated urban management system. In particular, Songdo uses AI to reduce travel time by 30% and IoT to manage energy. This model is suitable for densely populated cities like Hanoi or Ho Chi Minh City," Mr. Park Bong Kyu suggested.

Mr. Vincent Pham, Chairman of IOTA Capital, commented that Vietnam needs to mobilize foreign capital flows, especially FDI capital from Japan, South Korea and Singapore - countries with rich experience, possessing strengths in technology, infrastructure and capacity to implement large-scale urban projects. In addition, European investors such as Germany, the Netherlands and France are also particularly interested in smart urban projects that meet ESG (environmental, social and governance) standards.

"Vietnam can attract capital flows from the Middle East, which are actively shifting to emerging markets, such as Vietnam," Mr. Vincent Pham suggested.

Source: https://baoquangninh.vn/von-fdi-van-do-manh-vao-viet-nam-3363195.html