In a year marked by global economic volatility and declining cross-border investment flows, Vietnam continues to stand out as a compelling investment destination.
Despite global uncertainties in 2025, disbursed foreign direct investment (FDI) in Vietnam reached a record level of over USD 30 billion, up 10% year-on-year and the highest in the past five years. This performance reinforces Vietnam’s role as a magnet for international capital and a key driver of export growth and GDP expansion.
Explore the full interview (in Vietnamese) here
Mr. Alexander Ziehe, Chairman of the German Business Association (GBA), shared his perspectives on Vietnam’s resilience, reform momentum, and future outlook: “Looking specifically at German enterprises, many have achieved remarkable success here. However, to sustain and scale that success, further developments are needed around industrial parks, logistics infrastructure, workforce quality, and clearer, more enforceable regulations — not only from a financial perspective. Reducing administrative bottlenecks will be essential to ensure businesses can operate efficiently and realize their full potential.”
While geopolitical shifts and trade policy adjustments have impacted global supply chains, Vietnam has continued to provide predictability and long-term growth prospects. For European businesses, particularly German investors, Vietnam remains one of the most promising markets in ASEAN.
Mr. Erick Contreras, Vice-chairman of EuroCham emphasized: “Many European companies have adopted a wait-and-see approach due to the political and governmental changes taking place across Vietnam. They genuinely view Vietnam as the most promising country among ASEAN nations. Numerous businesses have reported increased stability following the administrative reforms and policy adjustments implemented by the government. These improvements have now extended from the national level down to provincial and even local levels.”
Vietnam is no longer focused solely on attracting large volumes of capital. Instead, the country is shifting towards high-quality FDI, emphasizing:
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Innovation and advanced technology
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Value chain integration
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Higher localization rates
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Sustainable development
This strategic transition has been recognized by the international business community. European business confidence in Vietnam has recently reached its highest level in a decade.
As Vietnam aims for high-tech growth in its next phase of industrialization, the challenge is ensuring that high-quality FDI not only boosts exports but also genuinely upgrades domestic capabilities to sustain and enhance FDI attractiveness. Vietnam needs to remain steadfast in its strategy of attracting high-quality FDI, linked with infrastructure investment, workforce development, and sustainable growth.