Vietnam Unveils Major FDI Policy Shift to Target High-Quality Investment

Vietnam is overhauling its approach to foreign investment, prioritising quality, innovation, and supply-chain integration as the country seeks to strengthen long-term economic growth and competitiveness. A new development framework for foreign-invested enterprises was established on June 8 with the issuance of Resolution No.10-NQ/TW by the Politburo.

Analysts at BIDV Securities JSC (BSC) describe the move as a significant policy shift, marking Vietnam’s transition from a strategy centred on attracting foreign investment to one that treats the foreign-invested sector as an integral driver of economic growth. The resolution builds on Resolution 50, issued in 2019, which focused on improving the quality of foreign investment inflows. Resolution 10 takes a broader approach by aligning the sector’s development with Vietnam’s wider national objectives.

A Strategic Pivot to Ecosystems

At the heart of the new policy is a change in mindset. Rather than prioritising sheer investment volume, Vietnam aims to cultivate investment ecosystems that support strategic industries, innovation, and productivity growth. The resolution promotes the development of industrial clusters, integrated value chains, innovation hubs, and technology ecosystems capable of generating broader economic spillovers.

In line with this, the government is moving away from incentive schemes based mainly on investment size or sector. Future support measures will increasingly be tied to project performance, the fulfilment of commitments, and the actual economic contributions made by investors. This approach is designed to raise the quality of investment while strengthening accountability throughout the project lifecycle.

Ambitious Targets for 2030

While maintaining ambitious targets, Resolution 10 places greater emphasis on attracting higher-value capital. Vietnam aims to secure between $200 billion and $300 billion in newly registered foreign investment and between $150 billion and $200 billion in disbursed capital during the 2026-2030 period. Policymakers also expect 75% of total foreign direct investment to originate from developed economies.

The new resolution sets targets to deepen domestic participation in global supply chains. Localisation rates in key manufacturing industries are expected to reach 45-50% by 2030, while around 10,000 Vietnamese companies are targeted to become suppliers to multinational corporations. Vietnam also seeks to engage more leading technology firms and expand R&D activities within the country.

Integrating Capital Markets and Green Growth

In a notable departure from previous frameworks, Resolution 10 incorporates capital market development into the foreign investment agenda. The government aims to upgrade Vietnam’s stock market status before 2030, develop international financial centres, and expand medium- and long-term capital markets. Foreign investment policies will also be increasingly aligned with environmental, social, and governance (ESG) standards, green growth objectives, and the country’s net-zero emissions commitment.

To support these goals, the resolution outlines measures including continued reforms in investment, land, taxation, data governance, and intellectual property regulations. It calls for mechanisms to engage strategic investors while prioritising high-tech sectors such as semiconductors, AI, big data, cloud computing, blockchain, biotechnology, advanced energy, and new materials. Emphasis is also placed on developing a highly skilled workforce, attracting global talent, and investing in digital infrastructure, green infrastructure, and smart industrial zones.

According to BSC Securities, Resolution 10 not only expands upon the foundations laid by Resolution 50 but also significantly broadens Vietnam’s policy ambitions. By positioning the foreign-invested sector as an organic component of the national economy, the resolution seeks to strengthen economic resilience, accelerate innovation, and support sustainable growth through 2030 and beyond, with a long-term vision extending to 2045.