Behind the numbers: Is Singapore really Vietnam’s top FDI source?

[HANOI] With global supply chains realigning and US-China tensions intensifying, Singapore has become Vietnam’s top investor, acting as a strategic conduit for capital from multinationals in China, Europe, and the United States through their regional headquarters in the city-state.

Singapore’s robust regulatory and financial frameworks have drawn unprecedented amounts of capital, especially from mainland China, as companies look to invest in South-east Asian countries to reduce dependence on Chinese markets and bypass trade tariffs.

According to Deloitte’s Doing Business in Vietnam 2024 report, Singapore led total foreign direct investment (FDI) inflows into Vietnam during the 2019-2023 period, averaging a 23 per cent share, followed by South Korea, Japan, Hong Kong, and mainland China.