Production of textile and garment at a foreign invested company (Photo: VNA)

HSBC said ASEAN attracted a record 17% of global FDI capital in 2022, nearly double what it attracted 4 years ago.

More than 65% of the region’s FDI capital went to Singapore, accounting for  25% of Singapore’s GDP.

Malaysia and Vietnam also attracted significant FDI inflows. New FDI into Vietnam’s manufacturing sector has grown in each of the last three years. General investment, investment in new establishments in Vietnam has increased 40% this year. The manufacturing sector alone accounts for 85% of total new FDI capital.

HSBC analysts say that since implementing reforms in 1986, Vietnam has received significant FDI inflows, becoming a rising star in the global manufacturing supply chain.

While much of the initial investment went into the lower-value-added textile and footwear sectors, Vietnam has quickly moved up the value chain, developing into an important electronics assembly hub. Much of the success in the technology sector is due to Samsung’s multi-year FDI roadmap in Vietnam, with an investment of 18 billion USD over the past two decades. This has encouraged other tech giants like Apple to expand their operations in Vietnam.