Vietnam’s Outbound Investment: Trends and Destinations
Vietnam’s outbound investment has entered a new phase of growth. After reaching nearly US$1.35 billion in newly registered and adjusted capital in 2025, overseas investment accelerated further in the first four months of 2026, increasing 2.3 times year-on-year to US$713.9 million.
By the end of 2025, investors had active projects in 85 countries and territories, representing 1,991 valid overseas investment projects with cumulative registered capital exceeding US$23.7 billion. In 2025 alone, investors launched 173 new projects and adjusted capital for another 32 projects, bringing total outbound direct investment for the year to nearly US$1.35 billion. The momentum has continued into 2026. During the first four months of 2026, Vietnamese companies invested US$713.9 million overseas, representing a 2.3-fold increase compared to the same period in 2025. Of this amount, 74 newly licensed projects accounted for US$691.1 million, while four existing projects increased their investment capital by another US$22.8 million.
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By sector, priorities are shifting toward infrastructure and industrial expansion. In 2025, newly registered capital was concentrated in electricity generation and distribution, which accounted for 37.7 percent of the total. During the first four months of 2026, investment priorities shifted slightly, with infrastructure-related industries accounting for a larger share of total capital. Electricity and utilities made up 22.9 percent, while transportation and logistics represented 20.9 percent. The data suggests companies are increasingly investing in sectors that support long-term regional operations rather than purely resource-based investments.
Geographic Diversification
Historically, Vietnamese outbound investment has been concentrated in neighboring economies where businesses possess established commercial networks and operational familiarity. At the end of 2025, Laos remained the largest overseas investment destination with cumulative investment exceeding US$6.2 billion, followed by Cambodia at US$2.94 billion and Venezuela with approximately US$1.82 billion. Laos also attracted the largest share of newly registered capital, accounting for 53.6 percent of total ODI, while the Philippines and Germany ranked second and third, respectively.
However, the first four months of 2026 suggest that geographic diversification is accelerating. Although Laos remained the leading destination, new capital also flowed to the Philippines and Germany. While neighboring markets such as Laos and Cambodia remain important investment destinations, investors are increasingly diversifying into developed financial centers and emerging markets. Singapore has become one of the most attractive destinations due to its stable regulatory environment, extensive tax treaty network, sophisticated financial ecosystem, and role as a regional headquarters location.
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By the end of 2024, the number of active Vietnamese investment projects in Singapore had increased by 59 percent compared to 2020, while cumulative investment capital had grown by 86 percent over the same period. For many Vietnamese enterprises, Singapore offers an optimal balance between regulatory certainty, tax efficiency, and international connectivity.
These advantages make Singapore attractive not only as a destination for direct investment but also as a platform for managing regional operations across ASEAN and beyond. Hong Kong remains relevant, but growth has moderated. Hong Kong has historically served as another important financial gateway for Vietnamese outbound investors. However, recent investment activity indicates that growth has become relatively modest compared to previous years. While Hong Kong continues to offer sophisticated financial services and capital market access, investors increasingly appear to be evaluating alternative regional financial centers alongside it. This shift does not necessarily reflect declining competitiveness but rather a broader diversification strategy as companies expand internationally.
Although current investment volumes remain relatively small, the United Arab Emirates is emerging as another market attracting interest. Its position as a regional financial and logistics hub linking Asia, Europe, and Africa has strengthened its appeal for companies seeking access to new export markets. Combined with ongoing bilateral economic cooperation between Vietnam and the Gulf region, the UAE could become an increasingly important destination for future outbound investment.
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For businesses pursuing these objectives, selecting the appropriate investment jurisdiction has become just as important as identifying the right commercial opportunity. As Vietnam’s outbound investment footprint continues to expand, businesses are becoming increasingly strategic in selecting investment destinations and structuring overseas operations. Lok Kah Seng, Associate Director – Group Commercial at Ascentium, shares his outlook on the next phase of Vietnam’s ODI and the factors likely to shape investment decisions.
“Vietnam’s outbound investment is expected to remain on an upward trajectory as domestic enterprises continue expanding internationally. Traditional markets such as Laos and Cambodia will likely remain important due to longstanding commercial relationships, while established financial centers, including Singapore and Hong Kong, alongside emerging gateways such as the UAE, are expected to play increasingly strategic roles. As investment destinations become more diversified, companies will need to balance market opportunity with regulatory certainty, tax efficiency, and long-term operational flexibility. Singapore and Hong Kong each offer distinct institutional strengths, from financial ecosystem depth and treaty network coverage to capital market access and proximity to global investors. Both continue to serve as established platforms for enterprises pursuing regional and international growth. The appropriate choice of jurisdiction will ultimately depend on each company’s strategic objectives, sectoral focus, and target markets. What is clear is that Vietnamese outbound investors are becoming more deliberate and sophisticated in how they structure and locate their international operations.”
