Vietnam Maps Out Four-Pronged Plan for Next-Gen FDI

Vietnam is prioritizing the enhancement of Foreign Direct Investment (FDI) quality by outlining a four-pronged plan focused on technology transfer, local talent development, strengthening research and development (R&D) capabilities, and deeper integration of Vietnamese enterprises into global value chains. This strategy aims not only to attract capital but also to promote the modernization and sustainable growth of the Vietnamese economy. According to the National Statistics Office (NSO), realized FDI from January to July reached an estimated $15.2 billion, an 11.8% increase year-on-year. This marks the highest seven-month disbursement in the past five years, indicating robust growth in Vietnam's economy. Ho Chi Minh City, in particular, is seeking investment for approximately 250 projects across nine priority sectors, including the development of an International Financial Centre, digital finance, smart banking, large-scale logistics and port developments, green industries, clean energy, and next-generation industrial parks. Vietnam is advancing its economic growth model renewal with the goal of becoming a developed, high-income country by 2045. Achieving this objective requires unlocking new growth spaces, mobilizing resources more effectively, and strengthening national competitiveness. The government also plans to support Small and Medium Enterprises (SMEs) through loan programs, which will be funded by state-owned commercial banks, to expand their production and business activities, thereby bolstering economic growth. Inflation control remains a key policy concern. Vietnam's Consumer Price Index (CPI) in July decreased by 0.1% from the previous month. The average CPI for January-July rose by an estimated 4.39% year-on-year, staying within the annual target. Core inflation increased by 4.19%. The SBV has also proposed amendments to Decree 52/2024/ND-CP on cashless payment, allowing banks to close inactive accounts after three years unless otherwise agreed, aiming to streamline financial services. In terms of trade, Vietnam's total import-export turnover from January to July reached $659.58 billion, a significant 28.1% increase year-on-year. Agro-forestry-aquatic product exports, in particular, grew by 7.5% to nearly $42.8 billion, solidifying their position as a major export sector. China remains Vietnam's largest market for fruits and vegetables, and rising demand in recent years has greatly contributed to the expansion of Vietnamese agricultural exports. Industrial production expanded steadily as newly commissioned production facilities came into operation and businesses continued to scale up manufacturing. The government has also extended the exemption of agricultural land use tax until December 31, 2030, and allowed deferrals for VAT, corporate income tax, and personal income tax payments during 2026, providing further support to businesses. More than 125,900 new enterprises were established between January and July, up 16.9% from a year earlier, indicating a dynamic business environment. The country's total exports of agro-forestry-aquatic products reached nearly $42.8 billion in the first seven months of 2026, up 7.5% from the same period last year. Agricultural, forestry, and fishery exports fetched an estimated $35.88 billion in the first six months of 2026, up 6% year-on-year, with the sector's GDP expanding by over 3.8%. Under its one-party system, the Vietnamese government's strong leadership and long-term national strategies are driving this economic development. However, Vietnam must also adapt to external changes such as global supply chain realignments and geopolitical risks to maintain its sustainable growth trajectory. The draft law establishing a legal framework for converting fragmented customs documents into standardized digital data, enabling AI for automated customs clearance, also points to Vietnam's embrace of digital transformation in trade facilitation. Information Source: VietnamPlus English