Growth momentum and transition to a new stage of development
In recent years, Vietnam has formed a foreign-invested economic sector, contributing to diversifying ownership, economic structure and creating about 2 million direct jobs and millions of indirect jobs, with higher incomes than the general level.
In addition to contributing to growth, FDI also promotes economic restructuring and growth model innovation. The proportion of agriculture in GDP is gradually decreasing, while industry, construction and services are increasing; many new industries such as semiconductor, electronics and high technology are being formed. At the same time, this sector helps Vietnamese businesses participate more deeply in the global supply chain, access technology, modern management and high-quality human resources.
Attracting FDI is an important driving force to promote Vietnam to improve institutions and investment policies. In nearly 40 years, the Investment Law has been amended and supplemented many times, along with preferential mechanisms and policies that are increasingly being improved at both the central and local levels.
The state management system on FDI is also increasingly being improved in the direction of both ensuring investors' rights and orienting capital flows into priority sectors and difficult areas.
With capital flows from about 130 countries and territories, FDI has contributed to expanding Vietnam's economic, trade and investment relations with the world, diversifying capital sources and improving the level of international integration.
Shaping a strategy to attract high-quality FDI capital
Despite many achievements, Vietnam's FDI attraction is still limited, such as dependence on cheap labor, disproportionate technology transfer, and weak links between FDI enterprises and domestic enterprises.
In that context, the Politburo issued Resolution No. 10 on economic development with foreign investment capital, defining the direction of attracting, managing and using FDI in the new phase, associated with the goal of improving the autonomy and competitiveness of the economy.
Resolution 10 has deeply, fully and comprehensively inherited Resolution No. 50-NQ/TW dated August 20, 2019 of the Politburo on orienting the completion of institutions and policies, improving the quality and efficiency of foreign investment cooperation to 2030. The thinking of attracting FDI in breadth, "spreading, not carefully selected" and unhealthy competition to reduce taxes according to the motto "running to the bottom" will be eliminated.
FDI continues to be attracted at a higher level in scale and quality. If in the period before 2025, it attracted an average of 25-30 billion USD of realized capital each year, this figure in the period 2026-2030 increased to 30-40 billion USD, an average increase of about 30-35% per year. 75% of investment capital from developed industrial countries, with strong capital and high-tech potential, associated with the group of 70 high technologies and 100 high-tech products. Especially emphasizing attracting investment from Fortune 500 corporations, research and development (R&D) investment. At the same time, attaching importance to FDI attraction from small and medium-sized enterprises owning core technology.
The Resolution proposes a system of synchronous tasks and solutions, including innovating thinking and awareness of FDI in the new period; perfecting institutions and the investment and business environment; developing high-quality human resources, attracting and valuing talents. At the same time, innovating the orientation of attraction by industry, field and locality; promoting green economy, digital economy; increasing spillover effects; improving the efficiency of investment promotion and state management; promoting the role of indirect investment in promoting direct investment, ensuring the coordination of the entire political system in attracting FDI.
If implemented synchronously and effectively, Resolution 10 will create a turning point in Vietnam's FDI attraction strategy, shifting from the "attract for growth" model to "attract to improve growth quality", thereby creating a foundation for the goal of becoming a high-income developed country in the coming decades.
