🇸🇬🇻🇳 Singapore Investment in Vietnam – 2025 Update

Singapore has long been a major partner for Vietnam and in 2025 the investment momentum is stronger than ever. With Singapore now one of Vietnam’s top foreign direct investment (FDI) sources, understanding the flows, sectors, and investment strategies is essential for global SMEs and foreign investors looking to use Vietnam as a base for Southeast Asia expansion.

Recent Investment Data

• In the first quarter of 2024, Vietnam attracted US $6.17 billion in FDI, up 13.4 % year-on-year; Singapore accounted for roughly 41.3 % (≈ US $2.55 billion). The Saigon Times

• In the first half of 2025, registered FDI into Vietnam reached US $21.5 billion (up 32.6 % y/y); out of this, Singapore-registered capital was nearly US $4.6 billion, accounting for 21.4 % of total. Fiingroup

• Bilateral trade in the first half of 2025 between Vietnam and Singapore reached SGD 19.5 billion (≈ US $15.3 billion), up 28.5 % year-on-year. VCCI

• Singaporean investment has concentrated heavily in manufacturing and processing — in one dataset, the processing/manufacturing sector received US $3.93 billion (63.6 % of total FDI) with Singapore leading the inflows. VnEconomy

Key Sectors & Opportunities

• Manufacturing & Processing: Electronics, components, high value-added production continue to attract Singaporean capital.

• Real Estate & Urban Development: Singaporean groups (e.g., through VSIP industrial parks) are involved in Vietnam’s industrial land and real estate sectors.

• Green & Digital Investment: With both countries elevating their partnership (Comprehensive Strategic Partnership), there is growing momentum in green logistics, renewable energy and supply-chain integration. Vietnam Briefing

• Trade & Supply Chain Integration: Singapore’s strong export of electrical machinery and parts to Vietnam (HS 85 category) underscores that Vietnam is a key hub within Singapore-anchored regional supply chains.

Drivers Behind the Trend

• The upgrade of bilateral ties between Vietnam and Singapore (CSP) in March 2025 has given a further boost to institutional cooperation.

• Vietnam’s attractive business environment: labour supply, improving infrastructure, strategic location, and government incentives for foreign investment.

• Singaporean investors benefit from Vietnam’s role as an export-oriented manufacturing base — many Singapore-based companies use Vietnam’s ecosystem to serve global markets.

• Trade expansion contributes to investment growth: enhanced connectivity, logistics, and deeper supply-chain linkages between the two nations.

Risks & Challenges

• Regulatory and land-use complexities remain in some provincial jurisdictions.

• Competition for land and labour is increasing — industrial zones are filling.

• For SMEs, navigating local conditions (tax, labour, environmental compliance) remains a challenge.

• The scale of investment is large, but average project size declining in some data — meaning more but smaller investments.

Action Plan for SMEs & Investors

• Define your model – Are you entering manufacturing, real-estate, services or green sectors? Understand where Singaporean capital is flowing.
• Choose the right location – Provinces like Hanoi, Bac Ninh, Quang Ninh, Dong Nai and HCM City are seeing heavy Singaporean investment.
• Align with local partners – Use Singapore-Vietnam networks, industrial parks (VSIP) and regional supply-chains.
• Leverage the CSP framework – Use the upgraded bilateral partnership for incentives, logistics, and regulatory access.
• Focus on value-added & green content – Investors with higher-end manufacturing, sustainability credentials and export strategies are advantaged.
• Mitigate risks – Conduct diligence on land, permit/registration, tax structure, labour supply.
• Monitor trade & investment flows – Because growth is strong but dynamic, staying current is key.

Conclusion

Singapore remains a leading investor in Vietnam with significant flows in manufacturing, urban development and increasingly green/e-commerce segments. The strong increase in investment and trade in 2025 signals that Vietnam is firmly in the spotlight as a strategic base for Singapore-linked capital. For SMEs and foreign investors, the window of opportunity is open — but success requires the right sector, location and strategy aligned with Vietnam’s evolving ecosystem.

At GTI Partner, we work with international investors and global SMEs to identify high-potential opportunities, ensure regulatory compliance, and establish a sustainable presence in Vietnam.

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