In the realm of international investment, Vietnam is a rising star, captivating the attention of global players with its promising economic landscape. However, amidst the glitz and glamour, there are subtle nuances that demand our attention, particularly in the context of foreign direct investment (FDI).
The country's ambitious targets, outlined in Resolution No10-NQ/TW, are indeed impressive. Aiming to attract a staggering $200-300 billion in FDI over the next five years, Vietnam is setting its sights high. But, as we delve deeper, a critical question arises: How can Vietnam ensure that these investments are not just numbers on paper, but tangible contributions to its economic growth and development?
One of the key challenges, as highlighted by experts, is the need to identify and capitalize on Vietnam's unique advantages. While the country's favorable location, abundant labor force, and improving investment environment are undoubtedly attractive, they are not the only factors at play. The real magic lies in the ability to foster a symbiotic relationship between the FDI sector and domestic enterprises.
In my opinion, the resolution's emphasis on attracting multinational corporations to establish research, design, and innovation centers is a strategic move. By encouraging these companies to set up shop in Vietnam, the country can tap into cutting-edge technologies and management capabilities, fostering a culture of innovation and knowledge transfer. However, it is crucial to ensure that these partnerships are not one-sided, but rather mutually beneficial.
The resolution's target of raising average localization rates in key industries to 45-50% is a bold move. By encouraging domestic enterprises to participate in global value chains, Vietnam can create a more resilient and self-sufficient economy. But, as Vice President of Mitsubishi Corporation, Takuya Sahashi, pointed out, the technical capacity and quality of domestic suppliers need to be addressed. This is where targeted support and investment in vocational training become crucial.
From my perspective, the resolution's focus on improving capital quality is a refreshing change. While attracting investment by capital scale is important, it is equally vital to ensure that these investments are sustainable and aligned with Vietnam's long-term goals. Dominic Scriven, Chairman of Dragon Capital, suggests that encouraging FDI enterprises to retain profits in Vietnam instead of transferring them abroad could be a game-changer. This would provide a stable foreign currency source for the economy and foster a more balanced investment environment.
Michael Kokalari, Chief Economist at VinaCapital, rightly emphasizes the importance of large-scale infrastructure development. While Vietnam has made significant strides in attracting FDI, maintaining this momentum requires continued investment in key areas. Equitisation of state-owned enterprises, initial public offerings, and other capital mobilization channels are essential to expand and improve the quality of the capital market, making Vietnam an even more attractive destination for international investors.
In conclusion, Vietnam's FDI performance in the first half of 2026 is indeed a cause for celebration. However, to maintain its advantages and improve the quality of capital inflows, the country needs to take a holistic approach. By addressing the challenges of supplier capacity, capital quality, and infrastructure development, Vietnam can ensure that its FDI targets are not just numbers, but a catalyst for sustainable economic growth and development. As an expert commentator, I believe that Vietnam has the potential to become a regional hub for production, services, innovation, and regional operations, but it will require a strategic and collaborative approach to make this vision a reality.
