Vietnam Shifts to High-Value Investment Attraction

Vietnam is significantly shifting its foreign investment attraction strategy, moving away from prioritizing labor-intensive projects towards seeking high-quality investments capable of driving technological progress, innovation, sustainable development, and stronger participation in global value chains. This strategic pivot is underscored by Politburo Resolution No. 10-NQ/TW, issued on June 8, 2026, which recognizes the foreign-invested sector as a crucial component of the national economy. This policy change is a vital step towards achieving Vietnam's long-term goal of becoming a high-income country by 2045. Shantanu Chakraborty, ADB Country Director for Vietnam, noted that while strong single-year growth is encouraging, maintaining both the pace and quality of growth over many years will be essential for the country to reach its objective. The economy continues to show robust performance. According to the National Statistics Office, GDP expanded by 8.39% in the second quarter, up from a year earlier, and growth for the first six months reached 8.18%. This expansion reflects broad-based contributions from both the supply and demand sides. Notably, the manufacturing and processing sector remains the principal driver of economic growth, accounting for 33.07% of the economy's total value-added growth during the first half of the year. Vietnam is also focused on strengthening international cooperation. During meetings with the US business community, representatives voiced strong confidence in the country's cooperation potential and investment environment. Furthermore, the Vietnam-EFTA Free Trade Agreement (FTA), one of the longest-negotiated trade agreements in Vietnam's history, signifies broad commitments covering trade in goods and services, investment, intellectual property, government procurement, environmental protection, sustainable development, and more. Domestically, Hanoi plans to establish and operate flagship night-time economy zones supported by preferential policies. These zones will include heritage and cultural districts, modern entertainment hubs, creative economy zones, and cultural tourism destinations, aiming to invigorate the domestic economy and boost the tourism sector. However, Vietnam also faces the need to adapt to new international standards, such as the EU's Deforestation-free Products Regulation (EUDR). Shipments must fully satisfy the EUDR's data requirements to qualify for export to the EU, meaning exporters can no longer source products with unclear compliance records for the European market. This necessitates an acceleration in traceability and the adoption of sustainable production systems for Vietnamese agricultural and fishery exporters. Information Source: VietnamPlus English