Vietnam too heavily dependent on FDI, must improve industrial ecosystem: policymakers
Vietnam is overly reliant on FDI businesses and the country should start developing a comprehensive industrial ecosystem to support the development of domestic industries, said industry leaders and policymakers.
According to a report by the Ministry of Industry and Trade (MoIT), the industrial sector currently accounts for over 90% of Vietnam’s total exports and 25.8% of the country’s jobs, with an additional 300,000 jobs being created annually.
In recent years, the Southeast Asian country’s industrial sector has gradually shifted away from resource-intensive, low-tech towards high-tech, high-value industries.

Workers during a shift at a packaging factory in Hung Yen province, northern Vietnam. Photo courtesy of Vietnam News Agency.
Investment in industrial development has continued to expand, accounting for nearly 40% of the country’s total investment. There has also been a shift from state investment to non-state (mainly FDI) investment, with the manufacturing and processing sectors attracting most of the FDI flowing into the country.
FDI businesses remain a major economic driver as domestic firms have struggled to improve production and management capacities. In key export sectors like electronics, textiles, and footwear, FDI enterprises account for over 80% of exports, but only make up 20% of the firms operating in these fields.
Pham Tuan Anh, deputy director of MoIT’s Industry Agency, said domestic firms have faced difficulties in mastering core production technologies and have an acute lack of high-tech, high-value Vietnamese products.
Anh said Vietnamese firms often find integrating further into the global supply chain a challenge, leaving most of the heavy lifting to their FDI partners. Being heavily dependent on imported materials is another major weakness for Vietnamese companies.
"The main driver of structural changes and value in Vietnamese industry has been FDI firms. They have always been leaders in delivering gains in export and growth,” he said.
“However, the links between FDI and domestic firms are poor, failing to create a ripple effect to lift domestic industries.”
Anh blamed domestic firms’ poor performance on their inability to exploit local competitive advantages to form value chains and a lack of long-term strategies for industrial development, as well as attracting investments.
The ministry advised Vietnamese firms to focus on acquiring and mastering modern production technologies.
“Along with developing production industries, it’s important to establish and improve industries involved with input materials, mechanical engineering, and chemicals,” Anh said.
According to the ministry, it has been working alongside other governmental ministries and agencies to create a more favourable investment and business environment for industrial development, with a focus on improving macroeconomic stability, financial policies, monetary policies, and taxation.
Resources have been earmarked, from the central to the district level, to help local governments select industries that complement the country’s competitive advantages, such as textiles, footwear, and electronics.
Developing an industrial enterprise system, especially one that works for the private sector, has become a key objective in Vietnam’s economic strategy, as well as building a skilled labour force for the next stage of development.
The ministry had proposed the government build additional large-scale industrial clusters to strengthen production chains and attract investment. In addition, it has voiced its support for more assistance for small- and medium-sized businesses (SMEs) to address any current shortcomings.
Economist Nguyen Minh Phong said Vietnamese SMEs often find tech transfer a difficult task, along with increasing their presence in any global supply chains. He advised them to rely more on domestic suppliers and supporting industries to reduce their dependence on imports and increase revenue.
- Read More
Vietnam plans to spend over $2 bln on US agri imports
Vietnam’s Ministry of Agriculture and Environment is expected to sign MoUs to purchase over $2 billion worth of U.S. agricultural, forestry, and fishery products.
Economy - Tue, June 3, 2025 | 10:01 pm GMT+7
New flight route to help Danang attract more wealthy tourists from Middle East
The new Dubai-Danang flight route has been launched, paving the way for an influx of high-spending travelers from the Middle East and Europe to the central Vietnam city, one of the country's top tourist attractions.
Companies - Tue, June 3, 2025 | 9:13 pm GMT+7
Food giant C.P. Vietnam’s 'diseased' pigs improperly quarantine-stamped: authorities
The widely circulated images of diseased pigs from C.P. Vietnam, a subsidiary of Thailand’s food giant Charoen Pokphand Foods Public Company Limited (CPF), date back to 2022, but the pigs were improperly stamped, Vietnamese authorities stated on Tuesday.
Companies - Tue, June 3, 2025 | 5:36 pm GMT+7
Son Hai Group proposes expanding 263km stretch of Vietnam's North-South Expressway
Vietnam’s Son Hai Group is seeking Prime Minister Pham Minh Chinh's approval to invest in the expansion of a 263-kilometer stretch of the eastern section of the North-South Expressway.
Infrastructure - Tue, June 3, 2025 | 3:53 pm GMT+7
FedEx establishes direct serve in Vietnam on surging demand
FedEx Express Corporation, one of the world’s largest express transportation companies, has transitioned to a direct-serve presence in Vietnam amid the Southeast Asian country’s growing international shipping demand.
Industries - Tue, June 3, 2025 | 2:55 pm GMT+7
Vietnam’s steel giant Hoa Phat to deliver thousands of containers to domestic shipping lines
Vietnam’s largest steelmaker, Hoa Phat Group, will supply thousands of containers to VIMC Container Transport JSC (VIMC Lines) and Vinafco Shipping JSC under recently signed contracts.
Companies - Tue, June 3, 2025 | 12:16 pm GMT+7
Shinhan Bank receives 'Fastest growing SME bank Vietnam 2025' award
South Korea’s Shinhan Bank Vietnam Limited has been named the “Fastest Growing SME Bank Vietnam 2025” by World Economic Magazine (UK).
Companies - Tue, June 3, 2025 | 10:19 am GMT+7
Vietnam’s ‘shrimp king' Minh Phu expects to return to profit in 2025
Minh Phu Seafood Corporation (UPCoM: MPC), Vietnam’s leading shrimp exporter, expects net profit to reach VND997 billion ($38.03 million) this year, reversing the loss in 2024.
Companies - Tue, June 3, 2025 | 8:38 am GMT+7
CMC Corporation breaks ground on $300 mln technology hub in Hanoi
Vietnam's leading technology firm CMC Corporation on Monday broke ground on its $300 million Hanoi CMC Creative Space (CCS Hanoi) project.
Industries - Mon, June 2, 2025 | 11:19 pm GMT+7
Thailand’s industrial output up after 9-month decline
Thailand’s industrial output has turned positive for the first time in nine months, with the automotive sector rebounding after a 21-month slump, said Thai Deputy Finance Minister Paopoom Rojanasakul.
Southeast Asia - Mon, June 2, 2025 | 10:48 pm GMT+7
Singapore, France to expand cooperation in civil nuclear energy, defence technology, AI research
Singapore and France have upgraded their Strategic Partnership signed in 2012 to a Comprehensive Strategic Partnership (CSP), marking Singapore's first CSP with a European country.
Southeast Asia - Mon, June 2, 2025 | 10:47 pm GMT+7
Masan MEATLife stock jumps on continued profit momentum
The ticker of Masan MEATLife (MML), a subsidiary of Vietnamese consumer retail giant Masan Group, jumped by 8.71% to VND31,200 ($1.2) per share on Monday, after it reported profit for the third consecutive quarter in Q1/2025.
Companies - Mon, June 2, 2025 | 10:34 pm GMT+7
Vietnam's VSIP Binh Dinh industrial park seeks to become 'golden destination' for Thai firms
The Becamex VSIP Binh Dinh service-urban-industrial complex in the central province of Binh Dinh is emerging as a promising destination for Thai enterprises, said its developer Becamex Binh Dinh JSC.
Industrial real estate - Mon, June 2, 2025 | 10:24 pm GMT+7
Termination of feed-in-tariff mechanism a major bottleneck in Vietnam’s electricity transition: expert
A major bottleneck in Vietnam’s electricity transition has been the termination of the feed-in-tariff (FIT) mechanism in 2021, with no suitable replacement mechanism in place, according to the director of Hanoi-based Institute of Energy Technology.
Economy - Mon, June 2, 2025 | 4:56 pm GMT+7
Vietnam Vaccine JSC launches high-quality healthcare shop chain
Vietnam Vaccine JSC (VNVC), well known for its vacciation services, on Saturday launched its VNVC Shop, a chain offering safe, high-quality healthcare products from globally recognized brands.
Companies - Mon, June 2, 2025 | 4:05 pm GMT+7
Vietnam heavyweight PV Gas plans $3 bln investment over next 5 years
PV Gas, a subsidiary of state-owned giant Petrovietnam, plans to make "strong investment" over the next five years in areas such as infrastructure and import-distribution of LNG.
Energy - Mon, June 2, 2025 | 2:01 pm GMT+7