Singapore’s long-term capital has been instrumental in shaping ASEAN’s investment landscape. As of end-2024, Singapore remained Vietnam’s largest foreign investor, with cumulative registered capital of over USD 83 billion, a partnership now defined more by quality than scale.

This shift reflects a broader regional dynamic. According to the UNCTAD World Investment Report 2024, FDI inflows into ASEAN reached USD 225 billion, up nearly 10% from the previous year, outpacing the global average. Singapore and Vietnam continue to emerge as two key nodes in ASEAN’s investment network, underscoring how capital flows are increasingly concentrated in Southeast Asia.

The focus is shifting from the drivers of investment to how capital is being restructured to create higher value.

Mr Lim Dyi Chang, Country Head of Commercial Banking, UOB Vietnam, said: “Vietnam is evolving from a cost hub into a value hub”.

This transition signals a structural rebalancing as investment shifts from cost optimisation to capability building, from scale to sophistication.

The structural shift: Investing in capability and quality growth

As of August 2025, Singapore ranked as Vietnam’s second-largest foreign investor, with 4,226 projects and USD 87.6 billion in cumulative registered capital.

On this expanding foundation, Singapore’s investment portfolio in Vietnam is undergoing a strategic shift, from traditional sectors such as real estate and manufacturing toward higher value-added industries including education, healthcare, professional services, and ESG advisory.

This evolution also mirrors broader investment priorities across ASEAN, where technology-driven sectors such as advanced manufacturing and digital services are attracting increasing attention from regional investors.

Mr Thomas Chan, Regional Managing Director of Acclime, UOB’s strategic partner, noted that Vietnam’s young, tech-savvy workforce and its growing position in regional value chains are driving this qualitative shift.
In essence, Singaporean investors are now pursuing higher value-added Vietnamese contents, not merely seeking short-term cost advantages.

Four dimensions illustrate this evolution:

• Industry depth: A rising share of knowledge-intensive and service-led sectors.
• Supply-chain role: Vietnam is increasingly integrated into CPTPP and RCEP as a resilient production and logistics node.
• Financing standards: The rise of ESG-linked and green trade finance is reshaping funding quality. Across ASEAN, UOB has mobilised USD 44 billion in sustainable finance, including 20 green projects in Vietnam, with a target for 30 per cent of new loans to support sustainability-related initiatives.
• Institutional readiness: The FTSE Russell upgrade of Vietnam to “Emerging Market” status in October 2025 recognises its capital-market reforms and alignment with global standards, signalling both financial maturity and investor confidence.

UOB as regional integrator

As the bank with the most extensive trade network in ASEAN, UOB plays an active role in facilitating quality FDI into Vietnam through three strategic pillars: FDI Advisory, Sustainable Finance, and Supply Chain Solutions.

This alignment is increasingly critical as 70 per cent(*) of global businesses now seek banking partners to help manage tariff exposure, FX volatility, and trade finance amid shifting supply chains.

Leveraging its regional network and advisory capabilities, UOB enables cross-border investment between international and Vietnamese businesses, reinforcing Vietnam’s role within ASEAN’s trade and production network.

With more than 30 years of presence in Vietnam, UOB continues to expand its role as a connector of investments between Singapore, ASEAN, and Vietnam. The bank currently operates 11 FDI Advisory Centres across Asia, supporting over 340 companies with total committed investment exceeding S$8 billion, contributing to the creation of more than 50,000 jobs in Vietnam.

In 2025, UOB Vietnam’s charter capital was raised to VND 10 trillion, alongside the plan to build UOB Plaza in central Ho Chi Minh City, a symbol of UOB’s long-term commitment and confidence in Vietnam’s growth potential.

Vietnam’s investment story is moving into a more stable, high-quality phase. As Singaporean capital shifts focus from low costs to higher value-add, UOB remains the trusted bridge connecting capital, capability, and regional opportunity, supporting Vietnam’s next stage of sustainable growth within ASEAN and beyond.

(*) Source: UOB Gateway to ASEAN Paper, 2025.