In January, firms from Thailand contributed US$19.38 million in foreign direct investment (FDI) in Vietnam across 1 new project, according to data from Vietnam’s Ministry of Planning and Investment. This represents a decrease of US$27.34 million compared to December, which saw US$46.72 million in registered capital with 2 new projects.
Investments from Thailand accounted for 0.45 percent of total FDI in January, down from 0.65 percent in December.
Thailand is one of the significant sources of foreign direct investment (FDI) in Vietnam, with strong economic and trade ties between the two countries. Thai companies have been actively investing in a variety of sectors, including manufacturing, retail, energy, agriculture, and infrastructure. Vietnam’s growing consumer market, competitive labor costs, and its strategic location in Southeast Asia make it an attractive destination for Thai investors looking to expand their businesses in the region.
The manufacturing sector has seen considerable Thai investment, particularly in food and beverage production, textiles, and consumer goods. Companies like Thai Beverage, CP Group, and SCG (Siam Cement Group) have established substantial operations in Vietnam, capitalising on the country’s expanding domestic market and its role as a key player in regional supply chains. In addition, the retail sector has attracted Thai investment, with major retailers such as Big C and Central Group making inroads into Vietnam’s retail and shopping mall markets, catering to the growing middle class.
In the energy sector, Thai investments in Vietnam have focused on renewable energy projects, including solar and wind power, aligning with Vietnam’s transition towards more sustainable energy sources. Thai firms have also contributed to Vietnam’s infrastructure development, including logistics and transportation projects, which support the country’s expanding industrial and urban landscapes.
Thailand’s strategic position as a hub for trade and investment in ASEAN, combined with favorable trade agreements such as the ASEAN Free Trade Area (AFTA), further enhances the opportunities for Thai FDI in Vietnam. As both countries continue to deepen their economic ties, Thai FDI in Vietnam is expected to grow, particularly in high-tech industries, green energy, and digital services. This collaboration is poised to play a key role in the long-term economic development of both nations.
See also: List of Vietnam’s Free Trade Agreements