Vietnam Enters New Phase of High-Quality FDI Attraction

Dr. Nguyen Duc Hien, Vice Chairman of the Central Policy and Strategy Commission, delivered an in-depth speech on this topic at the FDI Connect Forum 2026. Vietnam Business Forum presents the following remarks from his speech.

Delegates show keen interest in exhibition booths at the “FDI Connect 2026” Forum.

After 40 years of Doi Moi (Renovation) reforms, the foreign-invested sector has become an important part of Vietnam’s economy. FDI has not only contributed significantly to growth, exports, and the state budget, but has also promoted economic restructuring, technological innovation, stronger national competitiveness, and the attraction of high-quality human resources.

Entering 2026, Vietnam’s foreign direct investment (FDI) attraction trend continues to maintain strong momentum. According to first quarter 2026 data, total registered FDI in Vietnam exceeded US$15 billion, rising sharply year on year, reflecting stronger confidence among international investors in Vietnam’s investment and business environment.

The world is entering a period of profound change driven by trends such as the restructuring of global supply chains, strategic competition among major economies, green transformation, digital transformation, and especially the rapid rise of artificial intelligence. At home, Vietnam has set ambitious and sustainable growth targets and is pursuing a renewed national development model through 2045, including a new economic growth model. In this context, the 14th National Congress of the Communist Party of Vietnam identified rapid and sustainable development based on science and technology, innovation, and digital transformation as a key direction, while also promoting domestic strengths and making effective use of external resources.

For the FDI sector, this creates a fundamental requirement: Vietnam must shift from “attracting FDI by quantity” to “developing a national strategic investment platform” and redefining how it selects, cooperates with, and jointly develops high-quality FDI.

Current realities show that the foreign-invested sector in Vietnam still faces several issues that need to be addressed, including weak linkages between FDI enterprises and domestic companies, low localization rates, limited technology absorption capacity among Vietnamese enterprises, and low levels of technology, research, and development. Institutional, infrastructure, and human resource bottlenecks also remain unresolved. Competition among localities to attract FDI based mainly on quantity continues to be intense, in some cases even turning into a race to the bottom. These limitations stem from all three sides: Vietnamese government agencies, domestic enterprises, and FDI businesses. If not addressed at the root, these issues could significantly reduce the effectiveness of FDI cooperation and limit spillover effects and improvements in Vietnam’s economic competitiveness.

Recently, the Politburo of the Communist Party of Vietnam issued several important resolutions aimed at improving institutions for the development of economic sectors, including Resolution 68 on private sector development and Resolution 79 on state sector development. At the same time, relevant agencies are studying and preparing a separate resolution for submission to the Politburo on the development of the foreign-invested sector in the new period.

Vice Chairman of the Central Policy and Strategy Commission Nguyen Duc Hien delivers remarks at the “FDI Connect 2026” Forum

This reflects the consistent view of the Party and the Vietnamese government in valuing and properly recognizing the role of all three economic sectors, namely the state sector, the private sector, and the foreign-invested sector, as important pillars that complement one another within the new growth model aimed at achieving rapid, sustainable development and strengthening the economy’s self-reliance.

Based on practical realities and new development requirements, as well as key directions outlined in the documents of the 14th National Congress and related Party resolutions, I would like to discuss several strategic directions for Vietnam’s foreign investment cooperation in the coming period as follows:

First, develop a comprehensive foreign investment ecosystem and shift strongly from a capital attraction mindset toward a national strategic investment platform mindset, while selectively attracting FDI with quality, efficiency, and spillover effects at the center.

Vietnam will prioritize high-technology projects, innovation, research and development centers, foundational industries such as semiconductors, artificial intelligence, and the digital economy, as well as renewable energy, the green economy, and the circular economy. At the same time, Vietnam will screen and limit projects that consume excessive resources, cause environmental pollution, or generate low added value. The country will also develop preferential and specialized policy packages with outstanding incentives and separate procedures for projects in core priority sectors.

FDI attraction policies will be reformed by shifting away from tax incentives toward other forms of support, applying post-investment and performance-based incentives, while promoting technology transfer and stronger connections between the FDI sector and domestic enterprises. Priority will be given to projects with voluntary commitments and strong results in technology, innovation, research and development, green transformation, and digital transformation.

Second, build a closely connected ecosystem between the FDI sector and domestic enterprises.

This is currently the biggest bottleneck. Vietnam’s next-generation FDI approach will focus on “organically linking FDI enterprises with the domestic economic ecosystem.” Vietnam will prioritize the development of supporting industries, improve the capabilities of domestic enterprises, and design appropriate mechanisms to promote technology transfer and supply chain connections with FDI enterprises. The goal is to build value chains in which Vietnamese businesses participate more deeply and more substantially.

Third, continue implementing substantive institutional reforms to create a transparent, stable, and highly competitive investment environment.

Under major policy directions now being implemented, the Vietnamese government will continue simplifying administrative procedures, ensuring consistency in policy implementation across localities, and improving the predictability and stability of the investment environment. Under Conclusion 18, the target is to reduce administrative processing time by 50% and administrative compliance costs by 50% in 2026 compared with 2024 levels, at both the central and local levels, by the second quarter of 2026. Vietnam also aims to further reduce at least 30% of conditional business sectors and eliminate 100% of unnecessary business conditions, with the goal of placing Vietnam among the top three investment environments in ASEAN and among the world’s top 30 countries by 2028.

Fourth, develop high-quality human resources as a key factor in attracting next-generation FDI.

Vietnam will shift from the advantage of “low-cost labor” to “high-quality human resources.” Resolution 71 of the Politburo calls for comprehensive reforms in education and training, stronger cooperation between schools and businesses, and expanded enterprise-based training to meet market demand, especially vocational skills training in high-technology sectors. At the same time, Vietnam will continue studying policy adjustments to more effectively attract and utilize talented individuals and international experts.

Fifth, develop infrastructure systems in a comprehensive manner, especially strategic and digital infrastructure.

During the 2026 to 2030 period, Vietnam will focus on implementing large-scale and highly connected infrastructure projects such as completing the North-South Expressway, building high-speed railway lines and international intermodal railways, putting Long Thanh International Airport into operation, and upgrading modern seaport and logistics systems. At the same time, the country will strongly develop energy infrastructure, particularly renewable energy and LNG infrastructure, to ensure stable electricity supply for large-scale production. Digital infrastructure will also be prioritized through nationwide 5G coverage and the development of data centers and digital platforms, creating a foundation for the digital economy and attracting high-technology FDI.

Vietnam remains consistent in its view that the foreign-invested sector is an important part of the national economy, and that the success of investors is also the success of Vietnam. In this spirit, Vietnam is committed to continuing to improve the investment and business environment, maintaining political and social stability, and supporting businesses throughout their investment and development process in Vietnam. Vietnam also hopes the FDI business community will strengthen technology transfer, support Vietnamese enterprises in participating more deeply in supply chains, strictly comply with regulations on the environment, labor, and social responsibility, and maintain long-term cooperation for sustainable development alongside the Vietnamese economy.