Vietnam's top leader calls for leveraging foreign investment to strengthen domestic capacity, self-reliance

Party General Secretary and State President To Lam on Tuesday emphasized the need for a fundamental shift in Vietnam’s approach to foreign investment, affirming that the country aims to use external resources to strengthen domestic capabilities and strategic autonomy rather than simply attract capital.

Addressing a national conference in Hanoi on studying, disseminating and implementing the Politburo’s Resolution No. 10-NQ/TW on developing the foreign-invested sector, Lam said the resolution marks a major change in development thinking after nearly 40 years of attracting foreign investment.

He noted that Vietnam is no longer asking how to secure more foreign capital, but rather how to effectively utilize international resources to enhance domestic capacity, technological capabilities, competitiveness and economic self-reliance.

The Party and State leader said Resolution 10 sets more ambitious goals, requiring the development of the foreign-invested sector to go hand in hand with improving the economy’s strategic autonomy, production capacity, technological capability and competitiveness.

By 2030, Vietnam aims to rank among ASEAN’s leading countries in investment and business environment, competitiveness, innovation, public service quality and its ability to receive high-quality foreign investment projects.

He stressed that the implementation of Resolution 10 must be closely aligned with the 14th National Party Congress Resolution and other key Politburo resolutions, particularly Resolution 68 on private domestic economic sector development and Resolution 79 on state-owned economic sector development.

According to the leader, the objective of foreign investment attraction in the current period is to transform external resources into Vietnam’s own economic capabilities. This requires creating conditions for domestic private enterprises to participate in, learn from and gradually rise up in global value chains, while the state economic sector should lead investment in foundational and strategic areas to create enabling infrastructure and development space. The three economic sectors, he said, must complement one another under a unified development strategy.

He asked ministries, sectors and localities to adopt a new mindset on foreign investment, creating favourable conditions for capable, technology-driven and responsible investors with long-term commitments, while strictly screening out projects involving outdated technologies, excessive energy consumption, inefficient land use, environmental risks, transfer pricing, tax evasion, origin fraud or threats to national defence, security, critical infrastructure and data.

The leader also called for institutional reforms to ensure stability, transparency, predictability and alignment with international practices. Relevant ministries should review and harmonize regulations on investment, business and markets, while state agencies should shift from administrative management to development facilitation, modern governance and business support. Incentives, he noted, should be based on performance and fulfilment of commitments rather than upfront preferences.

He stressed the need to strengthen the domestic industrial ecosystem and foster substantive linkages between foreign-invested enterprises and Vietnamese firms. Alongside attracting multinational corporations, authorities should enhance the capabilities of domestic enterprises so they can become suppliers. Foreign investors should also help develop supporting industries, train local suppliers, share standards, transfer knowledge and facilitate deeper participation of Vietnamese firms in global value chains.

The Vietnamese top leader highlighted high-quality human resources as a decisive factor, asking localities with industrial parks, economic zones and high-tech parks to strengthen cooperation with educational institutions, research centers and businesses to provide demand-driven training. Vietnamese workers should gradually take on technical, managerial, research, design and supply chain management positions within foreign-invested enterprises.

He also underscored the importance of investing in strategic infrastructure and infrastructure for the new economy, saying infrastructure is the foundation of national competitiveness. Localities should avoid fragmented industrial park development lacking connectivity, worker housing, social services, vocational training and linkages with domestic enterprises.

The leader further called for a fundamental overhaul of investment promotion, urging authorities to move away from broad-based outreach towards targeted engagement with strategic corporations, investment funds and partners.

Support should be provided throughout the investment lifecycle, from project preparation to operation and expansion, while post-licensing assistance should help resolve difficulties, encourage reinvestment and retain profits in Vietnam. He also urged restructuring and strengthening investment promotion agencies at both central and local levels.

He highlighted the need to develop a modern capital market capable of attracting stable, long-term and responsible portfolio investment. Beyond FDI, Resolution 10 also emphasizes upgrading the stock market status and developing investment funds, international financial centers and free trade zones, positioning Vietnam as a regional hub for capital mobilization, allocation, financial services, technology and innovation, while ensuring financial security, system safety, transparency and effective risk management.

Underscoring that the resolution’s success depends on effective implementation, General Secretary and President Lam required each ministry and locality to develop concrete action plans with clearly defined tasks, deadlines and responsibilities. Localities should formulate investment attraction strategies based on their planning, comparative advantages, development conditions and regional connectivity, rather than competing for the same types of projects without regard to planning, infrastructure or resources.

He stressed the importance of comprehensive planning, clear division of responsibilities and effective coordination, with the central government providing strategic direction, institutional improvements, inter-regional coordination, major project screening and oversight, while local authorities remain proactive and innovative without undermining planning, lowering standards or sacrificing long-term interests.

The top leader pointed to the need for the development of evaluation criteria to measure the performance of the foreign-invested sector by industry and locality, along with improved statistical monitoring of foreign investment projects. Assessments of officials, agencies and localities involved in investment attraction should also be based on these criteria.

Concluding his remarks, Lam reaffirmed that Vietnam is entering a new stage of development with a new mindset, attracting foreign investment selectively rather than at all costs. He welcomed foreign investors committed to long-term operations in Vietnam, compliance with Vietnamese law, respect for workers, communities and national interests, as well as technology transfer, workforce development and stronger domestic enterprises.

He stressed that foreign investment should not replace domestic capacity but strengthen it, enhancing national self-reliance and supporting sustainable, inclusive and high-quality growth.

He called on the entire political system, the business community and both domestic and foreign investors to work together to effectively implement Resolution 10, translating its policies into high-quality projects, stronger enterprises, new value chains, quality jobs and enhanced national capabilities.