Indonesia has unexpectedly surged among Vietnam’s top foreign investors, with registered capital exceeding $1.7 billion in the first seven months, driven almost entirely by merger and acquisition transactions.
According to data from the Foreign Investment Agency (FIA) under the Ministry of Finance, Indonesia has made a strong advance, rising to sixth place and up 30 positions among the countries and territories investing in Vietnam in the first seven months of the year.
In the same period of last year, Indonesia registered only $11.8 million in investment in Vietnam, down 49.5 per cent from the same period in 2024.
In contrast, in the first seven months of this year, registered investment capital from Indonesian investors reached more than $1.74 billion, representing an increase of more than 293-fold on-year. This was a record increase, albeit against a low base one year ago.
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| Ciputra in Hanoi is an Indonesian venture in Vietnam. Photo: baodautu.vn |
Of the more than $1.7 billion in investment that helped Indonesia rise to sixth place, as much as $1.75 billion came through eight capital contribution and share purchase transactions. Newly registered investment accounted for only $150,000.
According to the FIA, the sharp increase in investment indicates a trend among Indonesian businesses to opt for capital contributions and share purchases as a means of rapidly expanding their presence in the Vietnamese market.
This approach enables businesses to quickly gain access to existing customer networks, distribution systems and legal infrastructure, without having to build them from scratch.
The FIA also noted that, amid strong growth in registered foreign investment flows into Vietnam in the year to date, domestic asset and corporate valuations remain relatively attractive compared with those in the region. This has encouraged Indonesian investors to accelerate disbursement before price levels continue to rise in line with the broader economic recovery.
The FIA’s report does not specifically identify the acquisitions made by Indonesian companies. However, a review of reports on FDI attraction since the outset of the year suggests that the deal was likely carried out around March, with a value of approximating $1.739 billion. This could be regarded as the largest merger and acquisition deal in the Vietnamese market over the past seven months.
Beyond the surge from Indonesia, the FIA reported that 90 other countries and territories had invested in Vietnam during the past seven months, up from 85 in the first six months of the year.
Singapore continued to lead at more than $10.3 billion, accounting for 27.3 per cent of total investment. South Korea ranked second with more than $8.2 billion, accounting for 21.6 per cent.
Hong Kong rose to third place with $4.9 billion, accounting for 12.9 per cent and representing an increase of nearly 300 per cent on-year, overtaking mainland China with $3.69 billion and Malaysia with $3.04 billion.
According to statistical data, the top five investment partners accounted for approximately 79.5 per cent of total investment capital, indicating a lower level of concentration than the 91 per cent recorded in the first six months. This shows that foreign investment flows are becoming more diversified in terms of investment partners, although they remain concentrated primarily in Asia.
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