Vietnam Issues Action Plan to Develop FDI Sector for High-Quality Investment

The Socialist Republic of Viet Nam's government has issued an action plan aimed at institutionalizing and comprehensively implementing the viewpoints, objectives, tasks, and solutions set out in Resolution 10, dated June 8, 2026. This initiative identifies specific responsibilities for ministries, sectors, and localities in organizing implementation, inspection, supervision, and evaluation. The primary objective of the plan is to ensure the effective and sustainable development of the foreign-invested economic sector, thereby transforming Vietnam into a competitive destination for high-quality, medium- and long-term foreign investment. Ministries, sectors, and localities are mandated to adopt a renewed mindset and foster a unified understanding of the foreign-invested economic sector's significance and role. This includes enhancing institutions, improving the investment and business environment, and cultivating high-quality human resources through effective talent attraction and utilization. Furthermore, the plan emphasizes upgrading and completing infrastructure to support strategic investments. It also calls for a renewal of foreign investment attraction strategies, tailored by industry, sector, and locality. A key focus will be on promoting green and digital economies, facilitating technology transfer, amplifying spillover effects, and strengthening linkages between foreign-invested enterprises and domestic businesses. Enhanced and more effective investment promotion activities, alongside more efficient State management, are also integral to the plan. For investment attraction by industry and sector, the Ministry of Finance is tasked with studying and proposing preferential and support policies. These would include enhanced incentives and special, flexible investment procedures for core projects, contingent upon investors' commitments in areas such as technology transfer, R&D, workforce training, domestic added value, supplier development, green transition, and digital transformation. The plan also involves identifying criteria and procedures for selecting strategic investment projects and establishing mechanisms for their monitoring and support throughout their development stages. Localities are expected to formulate lists of priority investment projects aligned with their potential and development orientations, create roadmaps for foreign investment attraction, and integrate these priorities into their socio-economic development plans. Resolution 10 signifies a strategic shift from primarily attracting FDI for capital to fostering a high-quality foreign-invested economic sector that contributes technology, innovation, human resources, domestic linkages, and higher value added to Vietnam's growth model. The focus moves from "FDI attraction" to "FDI-sector development," viewing the foreign-invested sector as an integral part of the national economy, to be developed alongside the State and domestic private sectors. The scope of focus is also expanded beyond direct investment to encompass foreign indirect investment, capital markets, and international financial institutions. Success metrics are being redefined to prioritize projects with advanced technology, innovation, modern management, high added value, and strong spillover effects, rather than solely the number or size of FDI projects. The strategy aims to avoid attracting investment at the expense of the environment, natural resources, social welfare, or economic security. By 2030, Vietnam targets attracting US$200–300 billion in registered FDI and US$150–200 billion in disbursed FDI. A significant portion, 75 percent of newly registered capital, is expected to originate from developed economies possessing advanced technological, financial, and modern management capabilities. The Resolution also sets a target for an average localization rate of 40–50 percent in key industries and aims for approximately 10,000 Vietnamese enterprises to participate in the supply chains of FDI entities. Special and flexible procedures and incentives are envisioned for strategic, large-scale, and technology-intensive projects with substantial supply-chain or regional impacts. The plan advocates for closer integration among FDI, foreign indirect investment, capital markets, international financial centers, free-trade zones, economic and industrial zones, high-tech parks, innovation centers, and logistics, data, and energy infrastructure. The overarching goal is to create an environment conducive for multinational corporations to establish regional headquarters, R&D centers, design studios, service hubs, and operational centers within Vietnam. Technology and innovation, coupled with green and digital transformation, are positioned at the core of the FDI development strategy. FDI is expected to play a more direct role in Vietnam's new growth model, which is predicated on science and technology, innovation, digital transformation, green transition, technology transfer, and high-quality human resources. The Resolution underscores the need for a transparent, stable, predictable, and internationally competitive investment environment, enhanced State coordination, digital, data, and AI-based investment management, and robust mechanisms for selecting, supporting, and monitoring strategic investors./.