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21/05/2026, 02:00
New Generation FDI: Elevating Vietnamese Enterprises in Sustainable Global Supply Chains
The success of supply chains depends on the strength of the local industrial ecosystem. As Vietnam’s domestic enterprises improve their capabilities, supply chains become more resilient. Amid growing global economic volatility, attracting new generation foreign direct investment (FDI) requires Vietnam to move beyond low-cost advantages and strengthen the economy’s internal capabilities.
High-level dialogue session at the “FDI Connect 2026” Forum
Speaking at the “FDI Connect 2026” Forum themed “Toward Sustainable Global Supply Chains,” jointly organized by the Vietnam Chamber of Commerce and Industry (VCCI) and the Bac Ninh Provincial People’s Committee in April 2026, Dr. Nguyen Duc Hien, Vice Chairman of the Central Policy and Strategy Commission, said the world is entering a period of profound transformation shaped by major shifts such as global supply chain restructuring, strategic competition among major economies, green transition, digital transformation, and especially the rapid rise of artificial intelligence.
For Vietnam, the FDI sector also creates a fundamental requirement: shifting from an approach focused on “attracting FDI by quantity” to one centered on building a national strategic development mindset. This also raises the question of how Vietnam should select, cooperate with, and grow alongside high quality FDI.
Sharing the same view, Associate Professor Dr. Ho Sy Hung, President of VCCI, said that amid global supply chain restructuring, multinational corporations are no longer simply searching for new production locations, but are increasingly prioritizing ecosystems with adaptability, transparency, and sustainability. Vietnam, with its strategic position, stable political environment, and strong reform efforts, is becoming an attractive destination for international investment flows. The FDI Connect Forum reflects Vietnam’s commitment to welcoming a new wave of investment and supporting businesses in participating more deeply in global supply chains.
However, according to VCCI President Ho Sy Hung, attracting new generation FDI requires Vietnam to move beyond low-cost advantages and strengthen the economy’s internal capabilities. This requires a strategy to develop domestic enterprises, especially supporting industry companies, so they can meet standards related to quality, technology, and governance.
Accordingly, Vietnam needs to shift from a mindset of simply “participating” in value chains to one focused on “upgrading its position.” Vietnamese enterprises need to gradually master technology and move into higher value-added segments such as design, research and development, and innovation.
According to the VCCI President, one of the major bottlenecks today is that connections between FDI enterprises and domestic businesses remain limited, while localization rates in many industries are still low. Vietnam needs to strengthen links between domestic businesses and FDI enterprises, between localities and investors, among businesses themselves, and between businesses and regulators. Through direct dialogue, institutional, procedural, and infrastructure barriers can be identified and resolved. These are key factors shaping competitiveness.
Delegates visit and explore exhibition booths showcasing products, technologies, and investment opportunities at the “FDI Connect 2026” Forum
From a local perspective, Pham Hoang Son, Chairman of the Bac Ninh Provincial People’s Committee, said that in the new development phase, Bac Ninh is shifting strongly toward selective investment attraction, with quality, efficiency, and sustainability as top priorities. In the coming period, the province will focus on completing strategic infrastructure systems, especially interregional transport infrastructure, next generation industrial parks, logistics, and digital infrastructure. Around 500 hectares of cleared industrial land have already been developed with synchronized infrastructure and are ready for large-scale and high technology projects. The policy framework is also becoming increasingly transparent, stable, and aligned with international practices, creating more favorable conditions for investors.
From the perspective of international businesses, Kim In Woo, Vice Chairman of the Korea Chamber of Business in Vietnam (KoCham), said Vietnam currently has many advantages, including an open economy, a strong manufacturing base, and high growth momentum. For Korean businesses, Vietnam is not only a manufacturing and export base, but also a strategic market over the medium and long term.
However, maintaining growth momentum will require addressing limitations in technological capability and industrial linkages. Production processes need greater precision, quality management systems need improvement, and businesses must meet international technical standards while developing engineering and mid-level management talent. In addition, policy factors are becoming increasingly decisive. Improving the speed of administrative procedures and ensuring consistency in policy implementation will help strengthen national competitiveness.
According to the KoCham representative, better alignment between the Vietnamese Government’s medium- and long-term development orientation and the strategic needs of the international business community is a key factor. In the coming period, the priority will not only be attracting more investment capital, but also selecting the right priority sectors, improving technology quality, and developing human resources. These are also necessary conditions for Vietnam to strengthen its position in global value chains rather than serving only as a production base.
Delegates at the “FDI Connect 2026” Forum
According to the Foreign Investment Agency under the Ministry of Finance, as of March 31, 2026, total registered FDI into Vietnam, including newly registered capital, adjusted capital, and capital contributions and share purchases, reached US$15.20 billion, up 42.9% from the same period last year. Investment continued to concentrate heavily in processing and manufacturing industries, which attracted US$7.07 billion and accounted for 69% of total newly registered capital. Electricity, gas, water, and air-conditioning production and distribution ranked second with US$2.28 billion, accounting for 22.3%, while all other sectors totaled US$884.6 million, accounting for 8.7%.
In the coming period, Vietnam will continue focusing on developing supporting industries and strengthening the capabilities of domestic enterprises, while also designing suitable mechanisms to promote technology transfer and gradually build value chains that allow Vietnamese businesses to participate more deeply and substantively. Relevant agencies are currently studying plans to submit a separate resolution on the development of the foreign-invested economy in the new period to the Politburo.
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Pham Van Thinh, Vice Chairman of the Bac Ninh Provincial People’s Committee
Bac Ninh is strongly focused on developing high technology industries based on its existing electronics manufacturing foundation, with the presence of major corporations such as Samsung and Apple, along with semiconductor companies including Amkor and Hana Micron. The province is also prioritizing the attraction of emerging technology sectors such as equipment for 5G and 6G, ecosystems supporting the rapid development of AI, robotics, unmanned aerial vehicles, and biomedical industries, as well as aviation components and equipment. The province is implementing three groups of solutions to attract and retain investors. First, it is proactively preparing cleared land and accelerating administrative support to help businesses quickly implement projects. Second, it is strengthening support for existing investors, helping improve production and business efficiency while encouraging on-site expansion. Third, it is developing incentive policies aligned with its orientation toward high technology industries, especially semiconductors and high-quality electronics. Through these efforts, the province is not only leveraging investment relocation trends, but also contributing to strengthening Vietnam’s attractiveness within global supply chains.
Vuong Thi Minh Hieu, Deputy Director of the Foreign Investment Agency under the Ministry of Finance
Competition in attracting FDI is no longer driven mainly by tax or financial incentives, but increasingly by institutions, workforce quality, science and technology, innovation, data, energy, and supply chain sustainability. With its stable geopolitical position, positive socio-economic environment, strong reform commitment, and high level of economic openness, Vietnam is playing an increasingly important role in global supply chains and becoming an attractive destination for new generation investment flows. The “Green Lane” mechanism and the new Investment Law are creating important momentum for improving the investment environment. The “Green Lane” mechanism helps shorten administrative procedures compared with conventional processes and has already been widely applied to projects in industrial parks. At the same time, the new Investment Law is gradually reducing conditional business sectors while shifting investment incentives from “input commitments” toward “output efficiency.” These policies are expected to support the attraction of new generation FDI, especially in high technology, innovation, and sustainable development sectors.
Sun Fenglei, Chairman of the Chinese Enterprises Association in Vietnam
Vietnam is becoming an attractive investment destination for Chinese businesses. Projects now range from traditional manufacturing to high technology industries, reflecting the strong and increasingly deep economic and trade cooperation between Vietnam and China. According to current assessments, this growth in investment is driven by two main factors: the determination of Chinese businesses to expand overseas investment and the growing attractiveness of Vietnam’s investment environment and policies. In addition, cultural similarities between the two countries create favorable conditions for Chinese businesses, helping them feel more confident in choosing Vietnam as a long-term investment destination. However, cooperation between Vietnamese and Chinese businesses still faces many challenges, especially gaps in technical capability and production quality between enterprises on both sides. An important solution now is strengthening technical training and promoting supply chain linkages. Technology and technical transfer from Chinese companies to Vietnam, together with joint development with Vietnamese enterprises, is regarded as the foundation for building stable, long-term, and mutually beneficial cooperation in the future.
Nguyen Duc Thanh, Deputy CEO of VietinBank
The foreign investment sector has become an important component of Vietnam’s economy, contributing significantly not only to growth, exports, and budget revenue, but also to economic restructuring, technological innovation, and stronger national competitiveness. However, one of the major challenges today is the still limited connection and cooperation between Vietnamese enterprises and FDI companies. Strengthening information transparency, connectivity, and trust building is regarded as an important factor in promoting linkages between domestic and FDI businesses. VietinBank’s strategy to support FDI enterprises is built on three main pillars. The first is an end-to-end support model that accompanies investors from the market research and investment preparation stage through project implementation. The second is the FDI Data Platform, which provides information on the investment environment and connects Vietnamese businesses with potential cooperation opportunities with FDI enterprises. The third is the development of a comprehensive financial ecosystem through the VietinBank GX model, integrating services for foreign investors. In particular, business matching activities are considered an effective solution for promoting understanding and cooperation between Vietnamese enterprises and FDI companies, thereby helping domestic businesses participate more deeply in global supply chains. Ben Ding Khoon Yew, General Director of SoilBuild International Vietnam
There are three main factors deeply affecting how investors allocate capital and shaping consumer sentiment. The first is geopolitical tensions and an increasingly uncertain business environment, which are pushing businesses toward asset-light strategies that prioritize factory leasing over large investments to reduce risks. The second is the increasingly rapid pace of technological change and shifts in market demand, especially in the AI era. The third is the growing requirement for ESG, which has shifted from an encouraged criterion to a mandatory condition for businesses. Vietnam is considered a promising destination for international investors thanks to major improvements in connectivity infrastructure, logistics, and power supply. The completion of expressways, seaports, and airports has created many opportunities and significantly reduced logistics costs. In addition, the strategy to train 50,000 semiconductor workers by 2030 is regarded as an important preparation step for attracting high technology investment flows and upgrading Vietnam’s position in global manufacturing value chains. Nguyen Trung Kien, Vice Chairman and CEO of CNCTech Group
To create stronger and more effective connections between FDI enterprises and Vietnamese businesses, I believe Vietnamese enterprises themselves must “grow” alongside those demands. From a mechanical manufacturing company, CNCTech has grown into a group operating in manufacturing, industrial real estate infrastructure, and logistics. This expansion has been driven by the practical needs of FDI clients, with a consistent focus on understanding investor needs and responding quickly and flexibly. We always prioritize growth in scale and professionalism to meet the requirements of FDI enterprises, rather than focusing on short-term profits. In manufacturing, we focus on competitive pricing, quality, and delivery schedules. In industrial real estate, we provide a “single contact, full-package” model, supporting investors from build-to-suit factories to legal procedures and helping them begin operations quickly. In logistics, CNCTech aims to provide convenient and integrated services that optimize operations for customers. As a result, CNCTech has gained strong trust from partners and customers. Currently, 70% of the group’s revenue, across both manufacturing and infrastructure segments, comes from FDI enterprises. |
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