Vietnam Attracts Global Manufacturers Despite U.S. Tariff Increases

Manufacturing and real estate lead Vietnam’s investment surge but challenges remain

Despite steep U.S. tariffs, Vietnam continues to attract strong foreign investment — especially in manufacturing and industrial real estate — driven by policy incentives, improving infrastructure and its strategic role in the global supply chain move away from China.

Vietnam’s economic ties with the United States are deep. In 2024, exports to America totaled $136.6 billion, accounting for nearly 30% of the country’s GDP. While the imposition of tariffs dealt a blow to Vietnam’s manufacturing sector, its May manufacturing PMI recovered slightly to 49.8 after falling to 45.6 in April, signaling early signs of stabilization.

Two sectors — manufacturing and real estate — are leading Vietnam’s foreign investment surge. As of April 2025, newly approved foreign investment reached $13.82 billion, up 39.9% year-on-year, according to Vietnam’s Ministry of Finance. Of that, $8.9 billion flowed into manufacturing, and $2.83 billion into real estate, which jumped 61.9%.

Industrial and construction-related sectors grew 7.42% in the first quarter of 2025, contributing more than 40% to GDP.

Speaking at the Vietnam Industrial Parks Development Forum on May 29,