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    Enhanced local-foreign business connections considered crucial for improving FDI quality in Vietnam.

    FDI Continues to Drive Economic Growth

    Robust Investment Landscape

    Vietnam’s journey between 2021 and 2025 has seen a remarkable surge in foreign direct investment (FDI), totaling a staggering US$185 billion—a figure that eclipses the prior period from 2016 to 2020. Notably, during just the first nine months of 2025, registered capital soared past US$28.5 billion, reflecting a 15.2% year-on-year increase, while disbursement levels reached a five-year peak of US$18.8 billion. This growing investment is not only accentuating economic stability but is also a testament to Vietnam’s allure as an emerging market.

    Quality Over Quantity

    The landscape of FDI is shifting from sheer volume to a focus on the quality of investments. Major global players such as NVIDIA, Qualcomm, Samsung, LG, and LEGO are establishing significant projects in sectors ranging from semiconductors to artificial intelligence and research and development (R&D). The endorsement from international bodies like HSBC underscores Vietnam’s standing as a prime destination for investment from both the United States and China.

    But while FDI inflows showcase a promising trajectory, the National Assembly’s Economic and Financial Committee voiced concerns about Vietnam’s dependence on this sector. In 2025, the FDI sector contributed to 79.1% of total exports, an increase from 71.7%, highlighting the economic backbone that foreign investments provide.

    Value Addition Challenges

    Despite the staggering figures, the World Trade Organization (WTO) reports a concerning trend: Vietnam’s domestic value-added ratio in key manufacturing exports, particularly in the electronics sector, remains low at just 26.9%. This statistic points to the urgent need for a paradigm shift; many national leaders emphasize moving from a focus on attracting a high quantity of FDI to nurturing quality investments. There is a collective call for projects that prioritize technology transfers, local workforce engagement, and use of Vietnamese products and services.

    Building Sustainable Ecosystems

    A focus on enhancing linkages among FDI enterprises, domestic companies, and state-owned entities is crucial for developing a competitive supporting industry ecosystem. Investment incentives are being reimagined to reward businesses committed to technology transfer, workforce training, innovation support, and increasing localization rates. The overarching message from policymakers is clear: FDI should catalyze domestic production capacity, uplift the value of “made in Vietnam” goods, and contribute to a self-reliant and sustainable economy.

    Commitment to Global Standards

    Recent strategic developments, such as Vietnam’s adherence to a global minimum tax, reflect the country’s aspiration to integrate responsibly with international standards. This not only aims to retain existing investors but also to elevate the quality of future FDI. By adapting to globally accepted norms, Vietnam reaffirms its commitment to fostering a business environment that is both attractive and sustainable.

    Through careful navigation of the complexities of foreign investment, Vietnam is poised to leverage its FDI sector to drive substantial economic growth. With a strategic focus on quality and integration, the nation aims not only to attract investments but to cultivate a thriving and self-sufficient economy.

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