Innovation and Reform Needed to Enable Investors to Operate More Securely and Effectively

Prime Minister Pham Minh Chinh meets with the U.S.-ASEAN Business Council (USABC) and the largest-ever U.S. business delegation, Hanoi, March 18

Vietnam increasingly attractive to investors

In March 2025 alone, Vietnam welcomed two large U.S. business delegations in succession, with one being the largest ever under the U.S.-ASEAN Business Council (USABC) program. This holds even greater significance as 2025 marks the 30th anniversary of Vietnam-U.S. diplomatic relations and the second anniversary of their upgrade to a Comprehensive Strategic Partnership.

The U.S. business delegation to Vietnam this time features leaders from many industries, including energy, technology, defense, logistics, aviation, manufacturing, agriculture, healthcare and finance. Notably, the delegation includes major corporations such as Boeing, Apple, Intel, Coca-Cola, Amazon and Excelerate Energy.

Former Ambassador Ted Osius, Chairman of USABC, said that this record participation demonstrated U.S. businesses' strong confidence in Vietnam’s future and USABC members' commitment to expanding trade and investment in the country’s dynamic market. The U.S. is currently Vietnam’s second-largest trading partner, while Vietnam ranks as the U.S.’s eighth-largest. By the end of 2024, U.S. direct investment in Vietnam reached about US$11.94 billion across more than 1,400 projects, making the U.S. the 11th largest foreign investor in Vietnam. As a result, major opportunities for business collaboration between the two countries remain ahead.

According to Ted Osius, despite global trade instability, including potential tariff risks for Vietnam, the U.S. business community remains "steadfast and committed to promoting stable and mutually beneficial trade relations."

At a meeting with Prime Minister Pham Minh Chinh on March 18, U.S. multinational hotel group Marriott International announced its support for Vietnam's tourism industry by promoting the country into the 228 member Marriott Bonvoy program. In agriculture, Bayer, a global leader in plant science, reaffirmed its commitment to advancing sustainable farming in Vietnam through innovation and creativity.

At a press conference, a representative of Pacifico Energy Group shared plans to take the lead in collaborating with Vietnam to strengthen energy security, paving the way for future investors. Meanwhile, a representative from Meta (Facebook's parent company) reaffirmed its commitment to long-term investment in Vietnam. As part of its expansion in virtual space services, Meta projects the creation of 1,000 new high-tech jobs. The company announced plans to collaborate with partners to build the largest-ever database for artificial intelligence (AI) models, including AI tools in Vietnamese to better serve the local population.

Not only the U.S., but leading corporations from China, Europe and Japan also visited Vietnam in early March 2025 to explore investment opportunities. According to the latest survey by the European Chamber of Commerce in Vietnam (EuroCham), 75% of European businesses surveyed selected Vietnam as their investment destination. Similarly, a survey by the Japan External Trade Organization found that over 60% of Japanese businesses operating in Vietnam expect to turn a profit in 2024, while 56% plan to expand their operations within the next one to two years.

Prime Minister Pham Minh Chinh reaffirmed Vietnam’s strong and clear commitments to the U.S. business community during a roundtable with American businesses, Hanoi, March 1

Maximizing opportunities for investment attraction

According to the General Statistics Office (GSO) of the Ministry of Finance, in the first two months of 2025, Vietnam’s total registered foreign direct investment (FDI) reached nearly US$6.9 billion, an impressive 35.5% increase year-over-year. A significant portion of this growth came from U.S. investors, particularly in high technology and the semiconductor industry. This surge in investment not only fosters sustainable economic development but also serves as a "springboard" for Vietnam to become a leading high-tech manufacturing hub in the region.

To achieve this, the Vietnamese government implemented several key policies and mechanisms in 2024 to attract FDI, particularly in the high-tech sector, including Vietnam’s semiconductor industry development strategy for 2030, with vision to 2050 (Decision 1018/QD-TTg, dated September 21, 2024), and Decree 182/ND-CP (dated December 31, 2024) on the establishment, management, and use of the Investment Support Fund. Among these, the most significant policy was Resolution 57-NQ/TW, dated December 22, 2024, issued by the Politburo, which emphasizes breakthroughs in science, technology, innovation and national digital transformation.

Automobile production at Ford Vietnam

As a result, many large projects in semiconductors, energy, component manufacturing, electronic products and high value-added products have received new investments and capital expansions, further boosting investor confidence and reinforcing Vietnam’s position as an attractive investment destination.

In addition, the Government's comprehensive institutional reforms, administrative procedure streamlining, and efficiency improvements in the apparatus have played a significant role in promoting economic growth, enhancing the business environment and creating new opportunities for investors. According to Ted Osius, these reforms are closely aligned with the priorities of the U.S. administration, which focuses on promoting sustainable supply chains, opening markets for U.S. products, ensuring a level playing field for U.S. businesses, and strengthening the economic and strategic relationship between the two countries.

In the coming years, Vietnam will continue to focus on attracting selective investments in key areas such as the digital economy, green economy, circular economy and knowledge economy. Priority will be given to projects in high technology, electronics, semiconductors, innovation, renewable energy and new energy sources like hydrogen. These sectors align with the strengths and potential of the U.S., creating opportunities for further collaboration and investment between the two countries.

To turn opportunities into reality and fully capitalize on the influx of high-quality investments from the U.S. and other countries, Vietnam will continue to aggressively address challenges in attracting investment. This includes focusing on reforms in administrative procedures, simplifying work permit and visa requirements for investors, enhancing the quality of human resources and infrastructure, and ensuring the predictability and stability of mechanisms and policies. In particular, comprehensive and inclusive innovation in institutional reform, along with streamlining the apparatus, is expected to create more favorable conditions for both people and businesses, enabling investors to operate more securely and effectively in Vietnam.