Chinese Investment in Vietnam 2025: $2.8 Billion FDI Boosts High-Tech and Green Manufacturing

Overview: Vietnam as a Rising Investment Hub

Vietnam is witnessing a remarkable surge in foreign direct investment (FDI) from China, positioning itself as one of the top destinations for cross-border capital flows in Asia.

According to the Foreign Investment Agency (FIA) under Vietnam’s Ministry of Planning and Investment, in January 2025 alone, China accounted for 30.1% of newly registered projects and 29.54% of total registered capital. This makes China the largest foreign investor in Vietnam, despite January including seven public holidays.

The inflows highlight a significant shift: Chinese investors are moving away from low-cost manufacturing toward high-value industries such as electronics, green energy, and advanced infrastructure.

Why Vietnam Attracts Chinese Investors

Strategic Supply Chain Diversification

Under the China+1 strategy, Chinese enterprises are expanding production outside their home country to mitigate risks, diversify markets, and strengthen global supply chain resilience.

Vietnam’s advantages include:

• Geographic proximity and cultural ties with China.
  
  

• Participation in major trade agreements (CPTPP, RCEP, EVFTA).
  
  

• Proven success as a manufacturing base for global giants such as Apple and Samsung, supported by suppliers like Goertek and Foxconn.
  
  

Infrastructure and Incentives

The Vietnamese government continues to enhance its business environment through:

• Expansion of industrial parks and logistics hubs.
  
  

• Preferential tax policies and land incentives.
  
  

• Partnerships with Chinese construction groups, including China Pacific Construction Group and Susun Construction Group, which are exploring large-scale infrastructure projects like bridges and metro systems in Hanoi and Ho Chi Minh City.
  
  

Workforce Competitiveness

Vietnam offers a young, skilled workforce with costs lower than in China. The expanding pool of engineers and technical specialists in electronics, industrial components, and renewable energy makes Vietnam increasingly attractive to high-tech investors.

The Shift Toward High-Tech and Green Energy

Beyond Traditional Manufacturing

Historically, Chinese FDI in Vietnam focused on textiles, footwear, wood processing, and food production. In 2025, investment is rapidly shifting toward:

• Electronics and semiconductors
  
  

• Industrial components and advanced machinery
  
  

• Electric vehicles (EVs) and batteries
  
  

• Renewable energy and clean technology
  
  

Companies such as BYD, Quanta Computer, Brotex, and Radian are driving this transformation.

Green Energy Projects

Chinese corporations are aligning with Vietnam’s renewable energy ambitions:

• Huadian Corporation has invested $2.8 billion in wind power, hydroelectric projects, and energy storage.
  
  

• Energy China Group is implementing 16 projects worth $2.2 billion, spanning LNG power, offshore wind, and transportation infrastructure.
  
  

This reflects rising demand for sustainable and high-standard industrial facilities, where investors prioritize modern infrastructure and green solutions.

Outlook: Can Vietnam Become a Global Manufacturing Hub?

Chinese investment demonstrates confidence in Vietnam’s long-term potential as more than a low-cost production base. Instead, Vietnam is increasingly recognized for:

• Advanced industrial infrastructure.
  
  

• Strong government support for FDI.
  
  

• Integration into global trade and supply chains.
  
  

However, experts note that Vietnam must continue upgrading its logistics, renewable energy infrastructure, and workforce training to maintain momentum and avoid being confined to low-value-added production.

If these challenges are addressed, Vietnam is well-positioned to emerge as a leading industrial and technological hub in Southeast Asia, reinforcing its role in the global supply chain.

Conclusion

The surge of Chinese FDI into Vietnam in early 2025 highlights a turning point for the country’s economic development. With investments flowing into high-tech manufacturing and green energy, Vietnam is not only benefiting from cost advantages but also building the foundation for a sustainable and globally competitive industrial ecosystem.

As Chinese corporations accelerate their transition into advanced sectors, Vietnam has the opportunity to solidify its position as a premier destination for international investors.