In January, Malaysian firms contributed US$68.7 million in foreign direct investment (FDI) in Vietnam across 8 new projects, according to data from Vietnam’s Ministry of Planning and Investment. This represents an increase of US$43.49 million compared to December, which saw US$25.21 million in registered capital with 3 new projects.

Malaysian investments accounted for 1.58 percent of total FDI in January, up from 0.35 percent in December.

Malaysia has been a key source of foreign direct investment (FDI) in Vietnam, driven by strong bilateral economic ties and growing business collaboration between the two countries. Malaysian companies have invested in a variety of sectors in Vietnam, including manufacturing, real estate, retail, energy, and agriculture. The strategic location of Vietnam within Southeast Asia, its competitive labour costs, and its growing consumer market make it an attractive destination for Malaysian investors seeking to expand their operations in the region.

One of the main areas of Malaysian FDI in Vietnam is in manufacturing, particularly in electronics, machinery, and automotive sectors. Malaysian companies have set up production facilities in Vietnam to cater to both the local market and the broader ASEAN region. Additionally, the retail sector has seen increasing investments from Malaysia, with companies like Parkson and Dairy Farm Group expanding their presence in Vietnam’s growing consumer market.

The energy sector is another important area for Malaysian investment, particularly in renewable energy and infrastructure development. Malaysian companies are involved in energy production, particularly in the solar energy segment, which aligns with Vietnam’s focus on sustainable energy solutions. The construction and real estate industries have also seen substantial Malaysian involvement, with investments in residential, commercial, and industrial projects in key cities like Ho Chi Minh City and Hanoi.

With ongoing trade agreements such as the ASEAN Economic Community (AEC) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Malaysia’s FDI in Vietnam is expected to continue growing. The expanding economic integration between the two nations, coupled with Vietnam’s economic growth and investment-friendly policies, ensures that Malaysia’s FDI will remain a key contributor to Vietnam’s development in various sectors.

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