Vietnam shifting to a stronger FDI ecosystem
Vietnam is moving towards a new approach to foreign investment with the focus shifting from attracting capital and individual projects to developing a foreign invested economic sector that is more deeply integrated with the domestic economy
Vietnam is reorienting its foreign direct investment (FDI) ecosystem to prioritize quality and effectiveness, with a focus on spillover effects on domestic businesses and the overall economy. Deputy Director General of the Foreign Investment Agency Bui Thu Thuy emphasized that incentives must now be linked to measurable outcomes, such as technology transfer, use of advanced technologies, and links with domestic businesses.
The strategy aims to prevent a "two economies within one economy" scenario, where foreign capital operates in isolation from domestic enterprises. Vietnam's National Assembly Economic and Financial Committee member Phan Duc Hieu highlighted the resolution's systematic approach and deeper practical thinking, emphasizing the need for an integrated ecosystem supporting FDI throughout the project lifecycle.
The resolution places domestic enterprises at the center, requiring them to strengthen technological, managerial, and financial capabilities. Nestlé Vietnam's CEO Binu Jacob shared how the company's partnership with local logistics firm Tuan Manh Logistics has yielded mutual benefits, with Tuan Manh's operations expanding ten-fold and adopting automated pallet loading.
Vietnam's registered FDI jumped 58% to $38 billion in the first seven months, with the Ministry of Finance preparing to institutionalize the new policy through amendments to the Investment Law and other measures, including tax incentives and direct budget support.
Written by urgent.news from Vietnam Investment Review's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
