Vietnam Signals Commitment to Attracting Quality Investment Amidst European Investor Confidence

Resolution No. 10-NQ/TW, recently issued by the Vietnamese government, is significantly boosting European investors' confidence in expanding their presence in Vietnam, according to Bruno Jaspaert, Chairman of the European Chamber of Commerce in Vietnam (EuroCham). Jaspaert highlighted that the resolution signifies a crucial evolution in Vietnam's perspective on foreign investors. For many years, foreign direct investment (FDI) was primarily viewed as a source of capital and employment. However, the government now clearly expects foreign-invested enterprises to be long-term partners in Vietnam's development, contributing not only capital but also technology, innovation, skills, and sustainable development. "For European businesses, that distinction is particularly important. Investment decisions are made with a long-term horizon measured in decades rather than quarters," Jaspaert stated. "When the Government formally recognizes FDI as an integral part of the economy and backs that vision with reforms to improve the investment climate, it gives corporate boards greater confidence to make long-term investment decisions and expand their operations." The Q2 2026 Business Confidence Index (BCI) report further underscores this renewed confidence, showing a surge to 79.7 points from 72.7 in Q1. This indicates Vietnam's resilience in a volatile global environment. More than half of EuroCham members now consider Vietnam a core strategic market, with 69 percent anticipating further improvements in business conditions. This optimism aligns with Vietnam's broader macroeconomic strength. The country's GDP expanded by an impressive 8.18 percent in the first half of 2026. Coupled with its rise in IMD's World Competitiveness Ranking and FTSE Russell's planned upgrade to Secondary Emerging Market status, Vietnam's message of strong, quality-focused growth is unmistakable. "What truly distinguishes Vietnam in an increasingly competitive region is that the Government is not merely talking about growth but is institutionalizing that ambition through national resolutions and proactively implementing institutional reforms to achieve it," Jaspaert observed. The focus has shifted from attracting investment at all costs to attracting high-quality investment. Resolution No. 10 reinforces this transition, signaling Vietnam's intent to compete on quality, not just low costs, through reforms in administrative procedures and policies promoting innovation and private sector development. European businesses view sustainability as a core business strategy, aligning with Europe's Green Deal and net-zero ambitions. Vietnam's commitment to economic growth alongside environmental protection, efficient resource use, and responsible governance presents a significant opportunity. EuroCham actively bridges European investors and Vietnamese policymakers, advocating for regulatory frameworks that facilitate sustainable investment flows, including discussions on environmental impact assessments, renewable energy, circular economy policies, and ESG standards. Jaspaert emphasized that meeting Europe's sustainability requirements necessitates a skilled workforce, efficient product testing, internationally recognized certification, and transparent conformity assessment processes. Administrative efficiency is also crucial, allowing companies to dedicate more resources to innovation and carbon reduction rather than navigating complex approval procedures. Vietnam's ambition is evident in its net-zero emissions by 2050 goal and Resolution No. 10's focus on high-quality investment. The next critical step involves developing a highly skilled talent pool, strengthening testing and standards infrastructure, and continuing to streamline administrative procedures to support this vision. These factors will be as vital to Vietnam's competitiveness as physical infrastructure investments. Source: Bao Chinh Phu