From cost advantage to ecosystem strength
Vietnam is at an important turning point in attracting foreign investment shifting to attracting high quality capital flows strengthening links with domestic enterprises and enhancing its position in global value chains
A seminar held in Hanoi on October 8 discussed the importance of shifting Vietnam's approach to foreign direct investment (FDI). Deputy Minister of Finance Tran Quoc Phuong emphasized that Vietnam's economy is entering the final stages of achieving its 2026 targets, with GDP growth rates of 9.95 and 9.01 percent in the third quarter and first nine months of 2023, respectively.
While cost advantages remain appealing to investors, Vietnam now needs to focus on building an ecosystem strength, with interconnected capital, supply chains, technology, and talent. Kamijo Hiroki, deputy CEO and head of FDI-TB at VPBank, pointed out that investors now seek broader qualities, such as the ability to support sophisticated supply chains, efficient treasury operations, and a robust talent pool for advanced industries.
VPBank's partnership with SMBC aims to connect domestic suppliers with global value chains, mobilizing domestic and cross-border capital to support FDI, infrastructure, and business growth. The seminar also highlighted five priorities for ecosystem development: supply chain localisation, technology transfer, research and development, Vietnamese enterprise participation in global supply chains, and addressing the investment gap between domestic and foreign-invested sectors.
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.
