FDI economy is not just capital flows, but also knowledge, technology and corporate culture

Hoàng Lâm |

The value that foreign-invested enterprises bring, in addition to investment figures, is also an "invisible flow" of knowledge, technology and business culture.

Speaking at the National Conference to thoroughly grasp and implement Resolution No. 10-NQ/TW of the Politburo on economic development with foreign investment capital, held on the morning of June 30, General Secretary and President To Lam suggested and raised the issue: "I listen to the opinions of localities, sectors and international friends, and realize even more clearly that capital is very important, but not only capital but also foreign technology is very necessary".

The message of the General Secretary and President, to be broadly understood, FDI enterprises, in addition to their important role in supplementing medium and long-term capital for development, also become a channel to receive advanced technology, modern management methods, human resource training and market expansion, contributing to improving national competitiveness.

This is a new, correct and accurate approach at the present time. Looking at the reality of nearly 40 years of FDI attraction, it can be seen that if this sector is only considered as a pure source of capital, it is an incomplete approach.

First of all, FDI is an important channel to help Vietnam access advanced technology. In many industries such as electronics, manufacturing, automobiles, energy or information technology, the presence of multinational corporations has helped form modern production chains right in the country. High-tech production lines, automated production processes, and international quality management standards help improve labor productivity, while creating a spillover effect to domestic enterprises.

The Vietnamese labor force in the process of receiving and transferring operating, maintenance, and improvement skills has gradually improved their skills, forming a team of engineers and experts with higher qualifications.

In addition to technology, FDI also brings advanced management methods and modern corporate culture. FDI enterprises often operate according to international standards on corporate governance, supply chain management, quality control, human resource management and labor productivity. This is an important "practical school" for Vietnamese enterprises.

Putting Resolution No. 10-NQ/TW of the Politburo on economic development with foreign investment capital together with Resolution of the 14th National Party Congress, Resolution 68 of the Politburo on private economic development, Resolution 79 of the Politburo on state economic development and other specialized resolutions, it can be seen that the combination and learning between Vietnamese enterprises - especially the private sector - and FDI enterprises is the path to jointly improve management capacity, focus on building brands, prioritizing product and service quality.

Therefore, Resolution 10-NQ/TW has emphasized the requirement to develop the FDI sector in a quality, efficient, selective direction, prioritizing high technology, environmentally friendly, with high added value and strong spillover potential.

When Vietnamese businesses access the "investment capital", "knowledge capital", "technology capital" and "enterprise cultural capital" that the FDI sector brings, economic sectors are joining forces to create an economy capable of learning, improving internal strength, technological capacity, competitiveness and self-reliance to rise up in the global value chain.

Hoàng Lâm
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