Vietnam continues to attract investments from major global companies, including US$13 billion from 32 first-time investors over the past 24 months, according to a new report.

Foreign direct investment (FDI) reached a ten-year high of US$36.6 billion in 2023, of which at least US$23.2 billion has been disbursed, says Dragon Capital, a Vietnam-focused fund manager.

Hung Nguyen, senior economist at Dragon Capital, attributes Vietnam’s growing appeal as FDI destination to its skilled, affordable workforce and role as a strategic logistics hub in Southeast Asia.

Key investors include South Korea’s LG Electronics with US$4 billion, the United States’ Amkor Technology with US$1.6 billion, and Denmark’s Lego Group, which invested US$1.3 billion in its first carbon-neutral factory.

Other notable brands like Apple, Samsung, Toyota, Nike, and DHL have expanded operations in the Southeast Asian nation.

Apple’s chief executive officer Tim Cook visited Vietnam recently. The tech giant has invested US$15.8 billion in the country since 2019, creating over 200,000 jobs. This aligns with the broader trend of tech firms expanding semiconductor supply chains in Vietnam.

Aside from technology, other sectors accounting for the investment influx include manufacturing, real estate, pharmaceuticals, automotive, and logistics.

First-time investors in the country hail from 12 countries, including the US, South Korea, Japan, Denmark, Germany, and Taiwan. Seven of the 32 first-time investors are from the US,

Hung says the growing FDI will help Vietnam to upgrade from a frontier market to an emerging market status, which will enable it to attract even more capital inflows.