Comprehensive upgrade of FDI attraction platform needed

A “green” and “digital” transformation

According to Phi Thi Huong Nga, Head of the Industrial and Construction Statistics Department under the General Statistics Office (under the Ministry of Finance), despite global volatility driven by geopolitical conflicts, supply chain disruptions and rising protectionism, investment capital into ongoing projects in Viet Nam has continued to increase. Capital contributions and share acquisitions have also maintained growth, reflecting foreign investors’ confidence in the country’s stable business environment and the Government’s macroeconomic management capacity.

In addition, FDI continues to concentrate in the processing and manufacturing sector, regarded as a key “launchpad” for sustaining high growth in the 2026–2030 period, thereby contributing to the goal of achieving double-digit economic growth.

Notably, the steady growth of realised FDI in recent years has provided a solid foundation, strengthening confidence and creating momentum for investors exploring opportunities in Viet Nam. Meanwhile, significant changes in the organisation of the administrative apparatus towards a leaner structure, along with the merger of certain administrative units, are expected to open up new development space for localities.

“These adjustments not only facilitate more selective and larger-scale FDI inflows but also help investment projects meet increasingly stringent technical standards set by the Government, thereby enhancing management efficiency and Viet Nam’s international competitiveness.”

Sharing this view, Associate Professor Dr Nguyen Mai, Honorary Chairman of the Viet Nam Association of Foreign Invested Enterprises (VAFIE), noted that while major economies such as the US and the EU are tightening investment screening and adopting more protectionist measures, Viet Nam continues to maintain an open policy and improve its investment environment year by year. At the same time, deep participation in free trade agreements (FTAs) and the establishment of strategic partnerships with numerous countries have enhanced Viet Nam’s global standing, expanded market space and increased its attractiveness to international investors.

In practice, major corporations such as Samsung, LG, Sumitomo Corporation and Mitsubishi Corporation continue to expand their investments, while global technology giants like Microsoft and Nvidia are increasing their presence in Viet Nam through large-scale projects in high technology, artificial intelligence and the digital economy.

“It is the convergence of macroeconomic stability, institutional improvements, international integration and market potential that creates Viet Nam’s competitive advantage in attracting FDI,” Nguyen Mai emphasised.

According to the Vietnam Foreign Investment Annual Report 2025, FDI inflows into Viet Nam during the 2026–2030 period are forecast to reach approximately 38–40 billion USD per year. Beyond scale, these flows are undergoing significant restructuring towards “green” and “digital” orientations. Specifically, FDI is expected to continue rising in high-tech manufacturing sectors, particularly semiconductors, electronics and medical equipment. Investment in renewable energy, including wind, solar and green hydrogen, is also expected to grow strongly.

Viet Nam is increasingly attracting projects in data centres, cloud computing and artificial intelligence, reflecting a broader shift towards the digital economy. In parallel, the development of free trade zones and international financial centres (IFCs) is expected to trigger a new wave of FDI in the financial sector.

The need for synchronised solutions

However, the report also highlights several risks, including the possibility that the United States could impose reciprocal tariffs of up to 46%, potentially reducing Viet Nam’s attractiveness in certain export sectors. Ongoing geopolitical tensions in the Middle East and the Russia–Ukraine conflict continue to impact energy prices and global supply chains. At the same time, competition for FDI is intensifying from regional economies such as Indonesia, Thailand, Malaysia and India, while the global minimum tax rate of 15% presents new challenges to Viet Nam’s investment attraction efforts.

Similarly, in its Business Confidence Index (BCI) report for the first quarter of 2026, the European Chamber of Commerce (EuroCham) in Viet Nam noted that despite short-term global uncertainties, Viet Nam’s long-term attractiveness remains intact. Notably, 93% of European business leaders expressed willingness to recommend Viet Nam as an investment destination. The business community has acknowledged improvements in reducing regulatory overlaps, as well as more streamlined visa and work permit procedures.

Nevertheless, EuroCham Chairman Bruno Jaspaert stressed that these reforms are not yet sufficient to offset the high costs of administrative and legal compliance. In practice, bottlenecks in the business environment are translating into tangible costs for enterprises, with rising operating expenses, slower implementation timelines and the diversion of resources from core activities. For investors, regulatory complexity not only hampers long-term planning but also directly affects competitiveness in an increasingly demanding global investment landscape.

As Viet Nam enters a new phase of development, competitiveness will increasingly depend on the effectiveness of implementation — from reducing administrative burdens and decentralising decision-making to ensuring greater clarity in legal regulations. EuroCham stands ready to work closely with the Government and partners to turn these priorities into tangible outcomes, ensuring that Viet Nam’s strong growth story continues to attract investment, innovation and sustainable development, Jaspaert said.

In response to these challenges, Associate Professor Dr Nguyen Mai emphasised the need for synchronised solutions to upgrade the investment environment and attract next-generation, high-quality capital flows. Institutionally, priority should be given to completing and guiding the implementation of laws related to investment, land and business, ensuring consistency across ministries, sectors and localities. In particular, new incentive mechanisms should be developed to replace traditional tax incentives, such as direct financial support and more effective, transparent investment dispute resolution in line with international standards.

Infrastructure development remains a critical factor, particularly strategic transport projects such as expressways, seaports, airports and high-speed railways, alongside ensuring adequate energy infrastructure for high-tech production and data centres. Effective implementation of the Power Development Plan VIII and the development of eco-industrial parks and next-generation industrial zones are expected to enhance national competitiveness.

Human resources remain a major bottleneck, requiring a focus on improving training quality in key fields such as semiconductors, electronics, artificial intelligence and information technology, while strengthening linkages between the State, educational institutions and businesses. Policies to attract skilled professionals and talent, particularly overseas Vietnamese, are also essential.

Accelerating the development of international financial centres in Ho Chi Minh City and Da Nang, alongside the establishment of internationally standardised free trade zones, is expected to provide a strong impetus for attracting FDI in finance and high-quality services. In addition, stronger linkages between the FDI sector and domestic enterprises should be promoted through the development of supporting industries and supplier connectivity centres, thereby increasing localisation rates and facilitating technology transfer.

“In the 2025-2030 period, next-generation FDI associated with high technology, the green economy, the digital economy and international financial centres will be a key driver enabling Viet Nam to advance rapidly and sustainably towards becoming an upper-middle-income country by 2030 and a developed, modern industrial nation by 2045,” Nguyen Mai affirmed.