Improving the quality of capital flows, towards "new generation FDI
In the context of strongly fluctuating global capital flows, attracting and effectively using foreign direct investment (FDI) capital poses new requirements for Vietnam. Not only needing more capital for growth, Vietnam must also improve the quality of capital flows and increase connectivity between FDI enterprises and domestic enterprises.
Dr. Le Duy Binh - Director of Economica Vietnam - said that in the period 2021 - 2025, the private economic sector, including domestic enterprises and FDI enterprises, contributes the majority of total social investment capital. In which, FDI capital continues to maintain an important role when increasing sharply in both registration and disbursement scale.
This capital flow mainly focuses on the processing and manufacturing sector, contributing to improving the production capacity of the economy. Another significant part is invested in real estate, especially industrial park infrastructure and resort tourism.
Stepping into the 2026 - 2030 period, the capital demand for growth is forecast to be very large. However, according to Dr. Le Duy Binh, the current goal is no longer just to attract more capital but to aim for "new generation FDI".
This capital flow needs to focus on projects promoting green growth, enhancing social responsibility, increasing technological autonomy and creating more intrinsic value for the Vietnamese economy.
A noteworthy point is that the level of linkage between FDI enterprises and domestic enterprises is still limited. The main limitation lies in the productivity, technology and management capacity of Vietnamese enterprises. Most enterprises still use old technology, while management capacity does not meet international standards. Therefore, domestic enterprises need to proactively innovate technology, improve management capacity and improve competitiveness to participate more deeply in the global value chain.
In addition to linkages in production, Dr. Le Duy Binh also mentioned the possibility of connection through the financial market and indirect investment (FII). The purchase of shares of Vietnamese enterprises by foreign enterprises or Vietnamese investors participating in investment in FDI enterprises will help strengthen the connection between the two regions.
Increasing linkages between international capital flows and domestic enterprises
Mr. Dinh Duc Quang - Director of Currency Business Division, UOB Bank Vietnam - said that besides FDI and FII, Vietnam still has great room to exploit cross-border capital flows through the international financial institution system operating domestically.
According to Mr. Quang, foreign banks not only provide direct capital to Vietnamese businesses but also support large-scale capital sources for domestic credit institutions. UOB alone has arranged international capital and trade sponsorship sources with a scale of up to billions of USD for Vietnamese businesses as well as domestic financial institutions.
According to UOB Vietnam's assessment, there are currently nearly 50 foreign financial institutions operating in Vietnam, including 9 100% foreign-owned banks and about 40 foreign bank branches. If coordination is strengthened and trust is built between these organizations and the domestic market, this will be a significant financial resource for the economy.
Representatives of UOB Vietnam also said that accessing the international capital market requires Vietnamese businesses to meet higher standards of financial transparency, management capacity and business planning.
