Vietnam Politburo issues resolution on FDI sector development

The Politburo, Vietnam's highest decision-making body, has issued a resolution that establishes a new mindset in developing the FDI sector.

Party General Secretary and President To Lam on June 8 signed Resolution No. 10-NQ/TW on "developing the FDI sector", outlining the country's long-term strategy for developing this sector after nearly four decades of Doi moi (reforms).

Accordingly, instead of focusing solely on the scale of registered capital, the country aims to build a national strategic investment platform prioritizing quality, efficiency, technology transfer, added value, and connectivity with domestic businesses as key criteria.

After nearly 40 years of opening up, the FDI sector has become one of the key drivers of Vietnam's economy. However, in the context of increasingly fierce competition to attract investment and the strong trend of global supply chain shifts, the requirement is no longer to attract capital at all costs, but rather to select capital flows with high quality, technology, and spillover effects.

The resolution targets about $200-300 billion in newly registered FDI during 2026-2030, with around 75% expected to come from developed economies possessing advanced technology, strong capital resources and modern governance expertise.

The country also aims to attract additional Fortune 500 multinational corporations and have at least three of the world's leading technology companies establish headquarters, offices or R&D centers in the country.

The resolution emphasizes investment quality over volume, making technology transfer, innovation, value creation and linkages with domestic enterprises key criteria for future investment attraction.

To improve investor confidence, the government reaffirmed protections for intellectual property rights, asset ownership, investment capital, income and other legitimate interests of foreign investors. It also pledged to maintain a transparent, stable and predictable business environment with low compliance costs and alignment with international practices.

The Politburo requested expanding market access for foreign investors under an appropriate roadmap and said regulations should not be applied retroactively in ways that disadvantage businesses, except in cases involving national defense, security, public health or environmental protection.

The resolution also seeks to streamline dispute resolution by encouraging commercial mediation and arbitration while strengthening mechanisms for timely dialogue and handling of business concerns.

Administrative reforms will include greater use of digital platforms and artificial intelligence in investment governance, with the eventual rollout of a fully digital National Investment One-Stop Portal designed to reduce processing times and compliance costs.

In a move welcomed by many multinational companies, the resolution requested a comprehensive review and simplification of work permit requirements for foreign experts, particularly those in high-tech industries and on short-term assignments.

The strategy prioritizes investment in sectors including semiconductors, artificial intelligence, big data, cloud computing, the Internet of Things, biotechnology, advanced materials, energy technologies, green industries, modern logistics, financial services and other high-value-added services.

Vietnam also intends to attract R&D facilities, data centers, innovation hubs, regional headquarters, treasury centers, procurement centers and shared service operations of multinational corporations, reflecting ambitions to move up the global value chain from a manufacturing base to a regional center for research, design and innovation.

Investment incentives will increasingly be tied to performance rather than upfront commitments. Companies demonstrating technology transfer, R&D, workforce training, local supplier development, green transition, and digital transformation are expected to receive preferential support.

The resolution asked for the creation of a special framework to select and support strategic investors, including accelerated procedures for large-scale projects in strategic technologies capable of strengthening regional and global supply chains.

To deepen links between foreign and domestic businesses, the country aims to have around 10,000 Vietnamese companies integrated into the supply chains of FDI enterprises by 2030, including between 500 and 1,000 first-tier suppliers.

The government plans to support that goal through a national supplier development program, business matching databases and initiatives to improve the management, technological capabilities, financing and production standards of domestic firms.

Beyond direct investment, the resolution also seeks to attract more foreign portfolio capital by accelerating efforts to upgrade Vietnam's stock market classification, develop international and regional financial centers, and improve market access for overseas investors.