In January, firms from Seychelles contributed US$30.95 million in foreign direct investment (FDI) in Vietnam across 2 new projects, according to data from Vietnam’s Ministry of Planning and Investment. This represents a decrease of US$33.40 million compared to December, which saw US$64.35 million in registered capital with 3 new projects.
Investments from Seychelles accounted for 0.71 percent of total FDI in January, down from 0.90 percent in December.
Seychelles, as a small offshore financial centre, has a relatively modest role in terms of direct foreign direct investment (FDI) in Vietnam. However, it serves as an important conduit for global investments, particularly through investment vehicles such as private equity funds, holding companies, and special-purpose entities (SPEs) that are incorporated in Seychelles due to its favourable tax and regulatory environment. The country’s status as an offshore financial hub with a light regulatory framework and low taxes has made it a popular jurisdiction for structuring investments, which are then channelled into emerging markets like Vietnam.
Investment from Seychelles typically flows into various sectors in Vietnam, including real estate, infrastructure, manufacturing, and more recently, technology and renewable energy. Global investors, particularly from Europe and Asia, may route their investments through Seychelles to take advantage of the jurisdiction’s favourable tax regime, simplicity in incorporation, and confidentiality.
While the direct impact of Seychelles’ FDI in Vietnam may not be as large as that from more prominent economies, its role in facilitating investments and enabling cross-border capital flows cannot be overlooked. As Vietnam continues to develop its infrastructure and industrial base, investment channels involving offshore financial centres like Seychelles are likely to continue playing a supporting role in directing capital to key sectors such as real estate development, industrial parks, and energy projects.
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