Despite ongoing global investment uncertainties, Vietnam continues to attract increasing foreign direct investment (FDI), especially in strategic sectors like semiconductors and artificial intelligence (AI). This trend underscores Vietnam’s growing role in global supply chains and its ambition to become a regional hub for advanced technology development.

The recent launch of a major AI Research & Development centre in Vietnam marks a significant milestone in the country’s cooperation with international partners in the field of AI innovation. Authorities are encouraging further collaboration with the Vietnam National Innovation Centre (NIC) to accelerate the development of a skilled AI workforce, which is critical to supporting the country’s technological ambitions and enhancing its competitive edge in the rapidly evolving global tech landscape.

The Ministry of Finance reported that Vietnam attracted over US$18.4 billion in registered FDI during the first five months of 2025, a 66.2% increase compared to the same period last year. Notably, a growing portion of foreign investment is being directed towards processing, manufacturing, digital transformation and AI, signaling a clear shift towards high-tech and knowledge-intensive sectors.

Many leading companies from the US and the European Union are expanding their investments and establishing supply chains in Vietnam, reflecting the country’s rising strategic importance in the global economy. Officials have also highlighted ongoing efforts to nurture local talent to contribute to global AI development and strengthen international relations.

Vietnam’s focus on AI and semiconductors is part of a broader strategy to cultivate new economic growth drivers, with the goal of achieving double-digit GDP growth in the coming years. The government is also working on improving infrastructure and regulatory frameworks to create a more favourable investment climate for high-tech industries while fostering innovation ecosystems that support startups and research institutions.

The Foreign Investment Agency under the Ministry of Finance reported a resurgence of large-scale projects during the first five months of 2025, with several new registrations and expansions by existing investors. Real estate projects alone accounted for nearly US$5 billion, doubling last year’s figures, demonstrating strong market appeal.

According to industry experts, Vietnam’s strategic location in Southeast Asia, rapid economic growth, appealing natural landscapes and improving living standards present significant opportunities to attract ultra-wealthy global investors, particularly in real estate.

While the real estate sector continues to stimulate the economy, experts emphasise that Vietnam’s future growth depends heavily on attracting FDI into processing and manufacturing, especially in cutting-edge fields like semiconductors and AI.

The Ministry of Finance stresses the critical need to mobilise foreign investment resources to support development goals, including achieving over 8% economic growth this year. To accelerate progress, authorities are focusing on identifying and resolving bottlenecks related to major FDI projects and deploying task forces to streamline investment procedures and project implementation.

They also highlight the importance of developing effective mechanisms to selectively attract FDI, tap into indirect investment flows and engage international investment funds. Providing targeted financial support and infrastructure for high-potential sectors is key to fostering breakthroughs and sustaining momentum. Vietnam is also committed to enhancing transparency and regulatory certainty to build investor confidence and long-term partnerships.

To further boost investment and economic growth, Vietnam has submitted a draft resolution to the National Assembly to establish an international financial centre. This centre is expected to enhance Vietnam’s integration into global financial markets, attract foreign financial institutions and capitalise on shifting international capital flows, thereby creating new opportunities for investment and innovation.

As Vietnam advances its position in semiconductors, AI and other strategic industries, the country is setting the stage for sustainable growth and a stronger role in the global technology landscape, helping to position itself as a key player in the competitive regional and global market.

Source: https://opengovasia.com/2025/06/17/vietnam-driving-foreign-investment-in-ai-and-semiconductors/