Foreign Direct Investment (FDI) in Vietnam increased 7.3% year-on-year and $2.6 billion month-on-month to $14.22 billion for January to September 2019, the Ministry of Planning and Investment said on Thursday.

FDI pledges for new projects (which indicate the size of future FDI disbursements) also increased year-to-year by 3.1%, taking the total up to $26.14 billion. Vietnam’s manufacturing and processing sector is set to be the biggest recipient of these pledges and investments (69% of total pledges), followed by the real estate sector (9.5% of total pledges).

Many analysts believe that Vietnam is currently in a prime position in the ongoing US-China trade war and have predicted that the Southeast Asian nation will benefit from further investment via the relocation of firms, as well as an increase in trade. Exports from Vietnam to the US jumped by 33% in the first half of 2019. Many fund managers have also increased their exposure to Vietnam given the ongoing trade war in order to establish a position to reap the benefits of any gains from the current situation, as well as a potential upgrade to “Emerging Market”.

FDI inflows into Vietnam reached a record high of $19.1 billion at the end of last year and 2019 may prove to be another record-breaking year.