Vietnam Boosts Investment Climate Through Institutional Quality, Infrastructure, and Green Transition

Vietnam is prioritizing the quality of its institutions, infrastructure development, and green economic transition to enhance the quality of foreign direct investment (FDI). In the northern region, ready-built factories attracted 73% of new manufacturing FDI in the past two quarters, indicating a growing demand for premises that allow for quick operational startup. FDI continued to flow strongly into industrial hubs during the first eight months of 2026. According to experts, FDI is concentrating in manufacturing, logistics, technology, and digital infrastructure sectors, leading to evolving property requirements for investors. In this context, the Vietnam Industrial Park Supply Enterprises Association and the Korea-Vietnam Association of Science and Technology signed a strategic Memorandum of Understanding (MoU) aimed at assisting thousands of firms in their global expansion. As the economy grows, Vietnam's transition to a green economy is directly linked to the ability of Vietnamese electronics companies to enter and maintain their positions in global supply chains, rather than simply meeting a set of standards. Furthermore, for the development of green ports, the Vietnam Seaports Association plans to promote energy management, emission reduction, electrification, onshore power supply, and renewable energy. In terms of legal frameworks, the government plans to periodically adjust market access restrictions for foreign investors based on socio-economic conditions and management requirements. This approach aims to shorten policy lags amid rapid changes in international capital flows, technology, and supply chains, while shifting Vietnam's investment attraction focus from quantity to quality and efficiency. At the provincial level, An Giang province plans to highlight urban development, key industries, and investment prospects, showcasing signature agricultural and forestry products, investment incentives, and tourism resources. In the northwest, the completion of the Son La-Dien Bien-Tay Trang Border Gate expressway is expected to reduce cargo transport costs and time, thereby attracting investment in warehousing, logistics, processing, and distribution. Lai Chau ginseng needs a clear roadmap for international market access, including standardizing growing areas, ensuring transparent traceability, promoting deep processing, and building a national brand. Under its one-party system, the Vietnamese government leads the direction of economic development, determining foreign investment attraction strategies and industrial policies. The rapid economic growth in recent years demonstrates the efficiency of policy implementation under this system. Simultaneously, improving institutional quality and pursuing sustainable development are increasingly important for gaining the trust of the international community. Particularly, in light of complex relations with China, diversifying supply chains is essential for enhancing Vietnam's economic resilience. Investments in green transition also hold strategic significance for securing access to Western markets.