Policy Brief: Advancing High‑Quality Foreign Direct Investment in Vietnam through the Resolution 10‑NQ/TW (2026) and the Law on Investment
1) Purpose: This brief summarizes and analyzes Vietnam’s strategic direction for foreign direct investment (FDI) under Resolution 10‑NQ/TW, outlining key objectives to 2030 and 2045, guiding principles, and legal implications under Article 20 of the Law on Investment 2025. It highlights policy priorities needed to transition from quantity‑driven to quality‑driven FDI.
Key Objectives:
1.1 Targets to 2030
– Position Vietnam among ASEAN’s leaders in investment climate, competitiveness, innovation, and public service quality.
– Attract USD 200–300 billion in registered FDI (2026–2030) and USD 150–200 billion in realized capital.
– Ensure 75% of FDI originates from advanced economies; increase Fortune 500 investors by 30%; attract at least three global tech corporations to establish headquarters or R&D centers in Vietnam.
– Achieve 45–50% localization in key industries and integrate 10,000 domestic firms into FDI supply chains.
– Raise trained labor share to 80%; expand Vietnamese participation in technical and managerial roles.
– Ensure 10% of industrial parks operate as eco‑industrial parks.
– Achieve MSCI market upgrade before 2030.
1.2 Vision to 2045
– Establish Vietnam as a regional hub for manufacturing, services, innovation, and high‑level operations.
– FDI sector contributes 25% of total investment and 30% of GDP, supporting Vietnam’s transition to a high‑income developed economy.
2) Guiding Principles
– FDI as a core economic pillar: Long‑term encouragement, equal treatment, and emphasis on technology transfer and human capital development.
– Strategic autonomy and competitiveness: FDI must strengthen supply‑chain integration, innovation, and national resilience.
– Shift to strategic investment platforms: From capital attraction to ecosystem building; from input‑based incentives to performance‑based mechanisms.
– Integrated FDI ecosystem: Align FDI with domestic enterprise development, financial centers, logistics, data, and innovation infrastructure.
– Strong investor protection: Transparent, predictable regulatory environment; enhanced dispute‑resolution mechanisms.
– Coordinated governance: Strong national leadership with empowered local implementation and performance‑based evaluation.
3) Legal Framework: Article 20, Law on Investment 2025
Foreign‑invested entities treated as foreign investors when:
– Foreign ownership exceeds 50%;
– A foreign‑controlled entity holds over 50%;
– Combined foreign ownership exceeds 50%.
Entities treated as domestic investors when Foreign ownership is 50% or less.
Other provisions
– Existing foreign‑invested firms may implement new projects without forming new legal entities.
– The Government will issue detailed procedures to ensure consistency and transparency.
4) Policy Implications
– Vietnam must enhance institutional quality, regulatory predictability, and administrative efficiency to attract high‑quality FDI.
– Human capital development and innovation ecosystems are essential to meet 2030 and 2045 targets.
– Domestic enterprise capacity must be strengthened to deepen supply‑chain integration.
– Capital market reforms are critical for MSCI upgrading and long‑term investor confidence.
– Sustainability requirements will shape future industrial and investment policies.
5) Recommendations
– Accelerate administrative and regulatory reforms to reduce compliance costs.
– Expand STEM and vocational training aligned with high‑tech industries.
– Develop specialized industrial clusters and innovation hubs.
– Strengthen SME supplier‑development programs.
– Implement green investment standards and expand eco‑industrial parks.
– Modernize capital markets to meet international benchmarks.