In today's rapidly evolving global economy, Việt Nam is making bold moves to attract foreign direct investment (FDI) and position itself as a key player in the Asian market. The country's ambitious targets, outlined in the Politburo's Resolution No10-NQ/TW, aim to bring in a substantial amount of FDI over the next few years, with a focus on quality and long-term sustainability. Personally, I find this approach particularly intriguing, as it showcases Việt Nam's strategic thinking and its desire to go beyond mere numbers.
The FDI Landscape in Việt Nam
Việt Nam has already made significant strides in attracting FDI, with a cumulative investment of around $550 billion from over 46,000 projects. This has contributed immensely to the country's economic growth, industrialization, and modernization efforts. The FDI sector has been a key driver of exports, job creation, and has even improved Việt Nam's global economic standing.
The recent figures for the first half of 2026 are particularly encouraging, with a 61% increase in registered foreign investment and an 11.2% rise in realized FDI. These numbers suggest that Việt Nam is on track to meet its 2026 FDI attraction target, which is a testament to the country's favorable conditions and its ability to attract international investment.
Challenges and Opportunities
However, as Việt Nam moves forward, it faces greater challenges. The competition for international investment is intensifying, and global uncertainties related to growth, inflation, and capital flows could impact the country's attractiveness. To address these challenges, Việt Nam is aiming to attract FDI from developed economies with strong technology, capital, and modern management capabilities. The resolution also emphasizes the importance of attracting multinational corporations to establish various centers and headquarters in Việt Nam, including leading global technology groups.
One of the key targets is to increase the involvement of domestic enterprises in global value chains. Việt Nam aims to raise average localization rates in key industries and have a significant number of domestic enterprises join the value chains of FDI firms. This strategy not only enhances the country's economic resilience but also promotes the development of its private sector.
Expert Insights
Takuya Sahashi, Vice President of Mitsubishi Corporation Việt Nam Co., Ltd, highlights the need to improve the technical capacity and quality of domestic suppliers. He points out that upstream industries, such as key materials and components, are underdeveloped, leading to continued import dependence. To address this, Việt Nam should focus on identifying capable local firms and providing targeted support. Expanding supplier databases and improving information access can help strengthen business connections between FDI and domestic firms.
From a capital markets perspective, Dominic Scriven, Chairman of Dragon Capital, emphasizes the importance of not only attracting investment by capital scale but also improving capital quality. He suggests that the government consider mechanisms to encourage FDI enterprises to retain profits in Việt Nam, which could provide a stable foreign currency source for the economy. Michael Kokalari, Chief Economist at VinaCapital, also stresses the need for continued investment in large-scale infrastructure and the expansion of capital markets to maintain effective FDI attraction.
The Way Forward
The positive FDI performance in the first half of 2026 provides a strong foundation for Việt Nam to achieve the goals outlined in Resolution No10-NQ/TW. However, to maintain its competitive edge and improve the quality of capital inflows, Việt Nam needs to continue enhancing its investment environment, developing infrastructure, and strengthening its domestic enterprises. By fostering substantive links between the FDI and domestic sectors, Việt Nam can become a competitive Asian hub for production, services, innovation, and regional operations, as envisioned by the resolution.
In my opinion, Việt Nam's approach to FDI attraction is a strategic and well-thought-out plan. By focusing on quality over quantity and by addressing the challenges of infrastructure development and domestic enterprise support, Việt Nam can position itself as a key player in the global economy and achieve its long-term goals.
