Vietnam to foster links between foreign and domestic sector

Vietnam to foster links between foreign and domestic sector

Instead of focusing solely on the number of projects and investment capital, Vietnam will prioritise building a high-quality foreign direct investment ecosystem that creates added value for the economy and fosters linkages with the domestic sector.

Vietnam will prioritise building an FDI ecosystem to foster links with the domestic sector

This was the opinion of Deputy Minister of Finance Tran Quoc Phuong at VIR's seminar, "Reaching out to innovative global supply chains" in Hanoi on October 8.

According to the National Statistics Office, in the third quarter and the first nine months, Vietnam's GDP growth is estimated at 9.95 per cent and 9.01 per cent, respectively, the highest in years.

Within this overall positive economic picture, attracting foreign investment is a bright spot. In the first nine months of 2026, total registered foreign investment in Vietnam reached $50.36 billion, up 76.4 per cent on-year, while disbursed capital reached $21.07 billion, a 12.1 per cent increase compared to the same period last year, the highest growth in the past five years.

The investment inflow increased in both quantity and quality. Many large-scale foreign-invested projects in the fields of electronics, semiconductors, digital transformation, and AI were invested in the country, affirming Vietnam's increasingly important role in the global semiconductor supply chain and high-tech manufacturing.

“However, the reality of nearly 40 years of attracting foreign direct investment (FDI) shows that the quality and effectiveness of attracting, managing, and utilising the capital inflow have not been commensurate with the potential and advantages, and have not met the development requirements of the country in its new phase. In particular, the linkages between the domestic and FDI sectors remain limited, and technology transfer, research, and development have not met expectations. The percentage of Vietnamese businesses participating in global supply chains is still low,” Deputy Minister Phuong said. “This is also one of the reasons why the Politburo decided to issue Resolution No.10-NQ/TW dated June 8, on the development of the foreign-invested economy, marking a strategic turning point and comprehensively changing the methods and thinking of attracting foreign investment in Vietnam.”

As per Resolution 10, attracting resources from outside will undergo major transformations. Instead of focusing solely on the number of projects and investment capital, Vietnam will prioritise creating a high-quality FDI ecosystem, valuing quality, efficiency, added value for the economy, and the ability to link with the domestic sector.

Vietnam will no longer attract FDI at all costs, but choose partners to enhance its position in the global value chain. The country will engage FDI not to replace domestic resources, but to strengthen them, to improve productivity, technological capacity, and competitiveness.

“The opportunities for Vietnam are immense. With a stable macroeconomic foundation, a safe political and social environment, and a wide network of free trade agreements, Vietnam has always been one of the safest and most attractive destinations for foreign investors,” the deputy minister said.

“Vietnam has also continuously improved its investment and business environment, improving institutions and policies. The amended and supplemented Law on Investment has also been passed by the National Assembly in August. Many procedures have been simplified, and green channels will be established to accelerate the progress of strategic technology projects such as semiconductors, AI, and data. These are necessary efforts for Vietnam to maintain its position as a priority destination, alongside the need for continued rapid improvement in electricity infrastructure, logistics, and high-quality workers," he said.

The strategic combination of Resolution 10 and Resolution No.68-NQ/TW on the development of the private economy, and Resolution No.79-NQ/TW on the development of the state-owned economy, aims to create a "three-legged stool" for the Vietnamese economy.

To realise the set goals, the government issued Resolution No.280/NQ-CP dated September 22 on the Action Plan to implement Resolution 10. Specific tasks and solutions have been assigned by the government to ministries, sectors, and localities. The Ministry of Finance (MoF) has also been assigned many important tasks.

“The ministry is in the process of institutionalising the policies outlined in Resolution 10, including continuing to improve institutions, enhancing the investment and business environment, building flexible incentive mechanisms for core projects, and boosting linkages between the domestic and FDI sectors. In addition, the MoF and other ministries and government agencies are also continuing to institutionalise these mechanisms,” Deputy Minister Phuong said.

VIR