Vietnam Reshapes FDI Strategy Focusing on Technology and Innovation

Politburo Resolution No. 10-NQ/TW, issued on June 8, 2026, recognizes the foreign-invested sector as a crucial component of the national economy, signaling a significant shift in Vietnam's investment attraction strategy. Moving away from prioritizing labor-intensive projects, Vietnam now seeks high-quality investments capable of driving technological progress, innovation, and sustainable development, thereby strengthening its participation in global value chains. The resolution charts a coordinated strategy to attract new-generation FDI. This marks a departure from Vietnam's previous focus, which, since the Doi Moi reforms, heavily relied on labor-intensive manufacturing to fuel its economic growth and integrate into global supply chains. While successful in driving rapid economic expansion, this approach has increasingly highlighted the need for a transition towards higher value-added industries. The new strategy reflects Vietnam's ambition to become a hub for technological innovation, rather than solely a manufacturing base. By targeting investments in promising sectors such as the digital economy, renewable energy, and high-tech manufacturing, the country aims to achieve economic sophistication and ensure long-term sustainability. This strategic pivot is also seen as part of Vietnam's broader effort to enhance its economic independence and international competitiveness, particularly in the context of evolving geopolitical and economic dynamics in the region. The resolution is expected to provide new impetus for Vietnam's ambitions, including its vision for establishing an international financial center.