US-Vietnam Ties Upgrade Creates Special Opportunities for Localities in FDI Attraction

The elevation of Vietnam-US relations to a Comprehensive Strategic Partnership has created special opportunities for local governments across Vietnam to attract high-quality Foreign Direct Investment (FDI). Ambassador Nguyen Quoc Dung, Vietnam's Ambassador to the US, highlighted that this new relationship opens an unprecedented framework for cooperation in economics, investment, and technology. Speaking at the 22nd National Foreign Affairs Conference in Hanoi, Ambassador Dung stated, "The new context of Vietnam-US relations is creating special opportunities for localities." While Washington is adjusting its trade policies to protect domestic production and reduce its trade deficit, Vietnam remains a key partner in the US's Indo-Pacific vision. For American businesses, Vietnam is evolving from merely a cost-competitive destination to a location for building production facilities, research and development (R&D) centers, data centers, and high-tech supply chains. Ambassador Dung noted that Vietnam is entering a phase of strong reforms, creating a favorable foundation for attracting new-generation FDI. However, he emphasized that the competition for FDI is shifting from a national level to a local level. "Investors are not just choosing Vietnam, but also choosing among cities like Hai Phong, Bac Ninh, Ho Chi Minh City, Da Nang, Quang Ninh, or other emerging development hubs," he said. While great opportunities accompany significant challenges, Ambassador Dung proposed a shift for localities from the mindset of "attracting as much capital as possible" to "attracting the right investors, the right sectors, and the right ecosystems" – in other words, "identifying the precise sweet spot for US capital flows." Each locality needs to develop a list of target US corporations and proactively engage through Vietnam's overseas representative agencies and business associations. He also stressed the importance of investing more in high-quality human resources, as US businesses consider labor quality a decisive factor when selecting investment locations. Furthermore, localities should proactively build cooperative relationships with US states that have complementary strengths and view international standards as a competitive advantage. Minister of Foreign Affairs Le Hoai Trung affirmed that the national growth target of 10% is a practical requirement, and local diplomacy plays a crucial role in realizing this development objective. He emphasized that local foreign affairs and international integration must be promoted more vigorously, becoming a very important task within the entire political system. The Minister outlined four criteria for evaluating the effectiveness of local foreign affairs work: concrete products, results that bring practical value, adherence to timelines, and public trust. For the future, he proposed four key directions: innovating thinking and improving the quality of local foreign affairs strategy planning to ensure diplomacy becomes an integral part of local development strategies; strongly innovating diplomacy for development, measuring effectiveness by the ability to convert foreign relations into concrete resources and outcomes; renewing leadership, management, and coordination mechanisms to ensure local foreign affairs are implemented cohesively, smoothly, and towards substantive results; and streamlining organizational structures, building a team of foreign affairs officials capable of meeting new demands, and fundamentally reforming the management of foreign affairs work. The 22nd National Foreign Affairs Conference, themed "Elevating Local Diplomacy, Effectively Mobilizing International Resources for Development," was attended by over 500 delegates. Source: VnExpress