Vietnam Shifts FDI Strategy to Attract High-Quality, New-Generation Capital

Vietnam is shifting its foreign direct investment (FDI) attraction strategy from a project-acquisition approach to fostering high-quality capital and building new-generation investment ecosystems. Ho Chi Minh City aims to promote strategic investment attraction centered around the Vietnam International Financial Centre (VIFC). This move is seen as a crucial recalibration for Vietnam to solidify its position as a major economy in Southeast Asia and achieve sustainable growth. In recent years, Vietnam's economy has experienced remarkable growth, with positive prospects widely reported by foreign media. The government is considering a draft law that would periodically adjust market access restrictions for foreign investors based on socio-economic conditions and management requirements. This is viewed as a policy adjustment to adapt to rapid changes in international capital flows, technology, and supply chains, and to shift the focus of investment attraction from quantity to quality and efficiency. General Secretary of the Communist Party of Vietnam Central Committee and President To Lam, in his address at the high-level general debate of the 81st session of the United Nations General Assembly in New York, emphasized Vietnam's choice of peace, cooperation, and development. He expressed Vietnam's commitment to contributing to building a peaceful, equitable, inclusive, and better world by strengthening the UN, upholding international law, and translating commitments into tangible benefits. Regarding Vietnam-US relations, President To Lam noted that overcoming losses, differences, and a lack of trust was necessary to reach the current status of a Comprehensive Strategic Partnership. Vietnam considers the US one of its most strategically important partners and wishes for the stable, substantive, effective, and sustainable development of the bilateral partnership, contributing positively to peace, stability, and development in the region and beyond. He also appreciated the US Department of War's coordination in organizing an event on the “Vietnam Wartime Accounting Initiative” (VWAI), reflecting the US commitment to the "500-day campaign" to accelerate the search, collection, and identification of remains of Vietnamese soldiers. The Vietnam-China Comprehensive Strategic Cooperative Partnership has also seen positive progress in recent years, with regular high-level exchanges and broader cooperation across various fields. Cultural, educational, tourism, and local exchanges have also received increased attention. Domestically, infrastructure development shows that by the end of August, capital disbursement for key transport projects had reached only 38% of their allocated capital, falling below the national rate of nearly 50%. The government is also considering draft laws aimed at promoting educational development, including tax incentives for domestic educational institutions, to encourage investment in the education sector. Source: VietnamPlus English