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Indonesia sees decline in foreign direct investment in Vietnam in December

In December 2024, Indonesia registered 3 new projects with US$14.46 million in newly registered capital, according to Vietnam’s Ministry of Planning and Investment. This represents a 25 percent decrease in the number of new projects compared to November, which recorded 4 new projects but negative capital of US$6.96 million.

In 2024, Indonesia invested in 19 new projects in Vietnam with US$27.20 million in newly registered capital.

Despite the dip in December, foreign direct investment  from Indonesia into Vietnam has been gradually increasing, reflecting the growing economic collaboration between the two ASEAN nations. Indonesian investors have focused on sectors such as agriculture, consumer goods, construction, and energy, leveraging Vietnam’s strong economic growth and expanding market potential. Companies such as Indofood and Ciputra Group have made notable investments in Vietnam, targeting opportunities in food production and real estate development.

The strategic partnership between Indonesia and Vietnam, supported by their shared membership in ASEAN and free trade agreements, has facilitated cross-border investments and trade. Vietnamese policies promoting foreign investment, including tax incentives and streamlined procedures, have further encouraged Indonesian businesses to expand their operations in Vietnam. With both countries aiming to strengthen regional supply chains and enhance economic cooperation, Indonesian FDI is expected to play an increasing role in Vietnam’s economic landscape in the coming years.

See also: How to Start a Business in Vietnam

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