Resolution 10 reshapes foreign capital flows

Resolution 10 reshapes foreign capital flows

Resolution 10 sets the goal of placing Việt Nam among ASEAN’s leading destinations in terms of business environment quality and capacity to attract high-quality foreign investment projects by 2030.

A FDI company in Hà Nội. — Photo chinhphu.vn

The Politburo has issued guidelines on the development of the foreign-invested sector, marking a strategic turning point in Việt Nam’s approach to managing and directing foreign capital inflows.

Many experts view Resolution 10-NQ/TW as a comprehensive reform agenda spanning legislative frameworks, policy implementation and a shift away from the fragmented, locality-driven approach to investment attraction.

According to Dr Phan Hữu Thắng, former head of the Foreign Investment Agency, Resolution 10 forms part of a strategy to restructure Việt Nam’s national growth model.

Professor Dr Nguyễn Mại, honorary chairman of the Vietnam Association of Foreign Invested Enterprises, said the resolution provides an important foundation for the National Assembly and the Government to further improve institutions, enhance the investment climate, and develop a foreign investment cooperation model suited to the country’s next stage of development.

Resolution 10 sets the goal of placing Việt Nam among ASEAN’s leading destinations in terms of business environment quality and capacity to attract high-quality foreign investment projects by 2030. The country aims to secure between US$200 billion and $300 billion in registered foreign direct investment (FDI), with 75 per cent originating from developed economies.

Beyond capital inflow targets, the resolution emphasises qualitative indicators. These include raising the localisation rate to 45–50 per cent, enabling about 10,000 Vietnamese enterprises to join FDI supply chains, attracting at least three of the world’s leading technology corporations to establish regional headquarters or research and development (R&D) centres in Việt Nam and increasing the proportion of trained workers in the FDI sector to 80 per cent.

These targets demonstrate the strong determination of the Party and the State to leverage foreign investment in support of national growth objectives, Mại said.

Assessing Resolution 10, Professor Dr Hoàng Văn Cường, vice chairman of the Vietnam Economic Science Association and former vice rector of the National Economics University, described the shift from input-based incentives toward performance-based support mechanisms as a breakthrough in economic governance.

The introduction of post-investment financial support tools is necessary to retain strategic investors, when the implementation of the global minimum tax is weakening the effectiveness of traditional corporate income tax incentives. 

Cường said that the government should first establish direct financial support mechanisms linked to actual expenditures on research and development activities and technology applications.

Such a mechanism would ensure that public funds are disbursed only when FDI projects generate tangible scientific, technological and value-added contributions in Việt Nam. 

This would prioritise investments that foster innovation and technology transfer rather than simple assembly and processing operations, while also supporting workforce development and domestic supply-chain expansion.

For projects committed to environmentally friendly technologies and compliance with environmental, social and governance (ESG) standards, the Government could provide interest-rate subsidies through financial institutions or allow accelerated depreciation for green and digital assets.

However, these incentives should be accompanied by robust post-audit mechanisms, with authorities retaining the right to withdraw support from companies that waste energy or cause environmental harm.

Cường noted that the FDI sector currently plays a pivotal role in key industries, including manufacturing and electronics, and accounts for roughly 70 per cent of Việt Nam’s total export turnover. The growth of strong domestic corporations is therefore essential for absorbing advanced management expertise and transforming external resources into internal capabilities.

To achieve this objective, he has proposed that the government adopt a targeted procurement approach, assigning strategic tasks to major domestic corporations to create larger markets and opportunities. 

Attracting global tech giants

Resolution 10 also highlights that foreign portfolio investment remains relatively modest and has yet to match the potential of Việt Nam’s market. Capital contributions, mergers and acquisitions by investment funds, global financial institutions and foreign investors remain limited.

Dr Phạm Sỹ An, deputy head of the Department of Finance and Scientific Management at the Vietnam Academy of Social Sciences, has pointed to market access restrictions and transaction mechanisms as key barriers. 

Certain existing regulations - most notably the requirement that investors have sufficient funds available before placing trading orders - significantly increase opportunity costs for international investment funds.

In addition, foreign ownership limits at many major companies have constrained the supply of high-quality investment assets. Exit mechanisms and financial risk-hedging instruments also remain underdeveloped.

Meanwhile, inconsistencies in information transparency and corporate governance standards continue to create significant challenges during the investment appraisal process. The current size and composition of Vietnam’s capital market also remain insufficiently diversified to meet the requirements of major financial institutions.

The market needs to expand the supply of investable assets by accelerating the equitisation and stock market listing of state-owned enterprises, while encouraging private-sector companies to pursue public offerings.

To attract global technology corporations to establish regional headquarters and R&D centres in Việt Nam - and encourage them to share core knowledge and expertise - An believes the country must undertake a far-reaching overhaul of both governance thinking and research collaboration mechanisms.

For R&D activities, evaluation criteria should focus on practical outcomes such as patent generation, product commercialisation potential, and the extent of collaboration with domestic enterprises.

Research partnerships between foreign-invested companies and Vietnamese universities and research institutes should operate under a robust legal framework that clearly defines intellectual property co-ownership, information confidentiality requirements and strict penalties for violations.

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