NEW-GENERATION FDI: A Lever to Enhance Vietnam’s Growth Quality and Competitiveness

This was shared by Mr. Hoàng Quang Phòng – Vice President of the Vietnam Chamber of Commerce and Industry (VCCI) at the forum “Perfecting Policies to Attract the New-Generation of FDI into Industrial Parks,” held on 28 November under the direction of VCCI and organized by Business Forum Magazine.

Speaking at the forum, Vice President Hoàng Quang Phòng noted that new-generation FDI not only focuses on profit but also emphasizes standards related to high technology, knowledge transfer, green development, corporate governance, social responsibility, and sustainable labor practices.

According to Vice President Hoàng Quang Phòng, Resolution No. 50-NQ/TW (2019) reflects the Party and State’s priority in attracting new-generation FDI. This is the first time the Politburo has issued a dedicated resolution on foreign investment, opening a new era of high-quality foreign investment cooperation, with a focus on high technology, foundational technologies, and projects with socio-economic spillover effects—especially those from major corporations, notably from Europe and the United States.

The VCCI Vice President stated that after Resolution 50-NQ/TW, Vietnam implemented the Foreign Investment Cooperation Strategy for 2021–2030 along with a series of new mechanisms and policies—from special investment incentives and a “green lane” mechanism for priority projects to the establishment of an Investment Support Fund and a Human Resources Development Scheme for the semiconductor industry.

“After nearly four decades of success in FDI attraction, Vietnam is standing before a historic opportunity to welcome high-quality capital flows in high-tech and innovation sectors. A new scheme on attracting new-generation FDI is being drafted by the Ministry of Finance to ensure we do not miss this opportunity,” Vice President Hoàng Quang Phòng shared.

According to the VCCI Vice President, regarding investment attraction into industrial zones, 29 years have passed since the Government first issued specific regulations on industrial zones in the 1996 Law on Foreign Investment (Law No. 52-l/CTN, dated 11 November 1996). Since then, the number of industrial zones has continuously increased and played a crucial role in national economic growth. He emphasized that FDI has always held an important position and made significant contributions to the sustainable development of Vietnam’s industrial zones over the years.

Vice President Hoàng Quang Phòng stressed that as the economy transitions towards green growth, circular economy models, and the target of achieving net-zero emissions by 2050, the review and improvement of investment incentive policies for industrial and economic zones have become extremely urgent. The Ministry of Finance is currently gathering feedback on a draft decree on the management of industrial and economic zones, which proposes major revisions to investment incentive regulations to create more favorable conditions for investors.

Vice President Hoàng Quang Phòng noted that the most notable and strategic highlight of the draft decree is the addition of provisions related to spending on greenhouse-gas emission reduction activities and the development of industrial symbiosis models. He emphasized that this mechanism will create strong financial incentives, encouraging enterprises to transition to clean technologies, improve energy efficiency, and adopt environmentally friendly solutions.

In that spirit, Vice President Hoàng Quang Phòng expects that these changes will expand regional economic development space, attract strategic investors with modern technologies, and accelerate the green-transition process. This is an important step in institutional improvement, steering Vietnam toward green growth, a circular economy, and the achievement of net-zero emissions by 2050—helping the country become an attractive and sustainable destination on the global investment map.

The VCCI Vice President emphasized: “As the representative organization of the Vietnamese business community, VCCI always considers the promotion and improvement of the investment environment a core mission. For many years, VCCI has contributed to the development and adjustment of FDI policies, and the shift toward new-generation FDI is now one of the key priorities VCCI is pursuing.”

Vice President Hoàng Quang Phòng expressed his confidence that with close cooperation among state agencies, the business community, and investors, Vietnam will soon become a center for attracting new-generation FDI in the region and the world.