Positioning Dong Nai on Vietnam’s FDI map (Part 1)

In 1987, Vietnam began opening its economy to foreign direct investment (FDI), marking a major turning point in the renewal process initiated by the Party and the State. By promptly and effectively translating these guidelines into concrete actions, Dong Nai has, over nearly four decades, emerged as a “bright spot” and ranked among the country’s top five localities in attracting FDI.

Part 1: Party guidelines create momentum for sustainable FDI inflows

From the renewal policy launched in 1986 to recent strategic resolutions, the Party and the State have consistently pursued a selective approach to attracting FDI in order to ensure sustainable development. Dong Nai is one of the provinces that have effectively implemented these resolutions and strategies, successfully welcoming all four waves of FDI investment into Vietnam.

Production activities at Changshin Vietnam Co., Ltd., Thanh Phu Industrial Park, Tan Trieu ward, Dong Nai province. Photo: Ngoc Lien

Implementing the Party and State’s renewal policy, Dong Nai has made strong efforts to reform its economic management mechanisms. As a result, the province has achieved significant outcomes in industrial, agricultural and service-sector development, particularly in attracting FDI, thereby contributing to local economic growth. To date, Dong Nai has attracted more than 2,200 FDI projects from 51 countries and territories.

Renewal vision shaping FDI attraction policies

In 1986, the 6th National Party Congress launched a comprehensive renewal process, shifting Vietnam toward a socialist-oriented market economy. This marked a fundamental change in economic thinking and laid the groundwork for opening up to FDI inflows. Subsequently, on December 29, 1987, the National Assembly passed the Law on Foreign Investment, the first legal framework paving the way for FDI inflows into Vietnam.

From the early days of the country’s opening, Dong Nai took the lead in attracting FDI projects. The province granted its first FDI license on September 30, 1989, in the taxi transport service sector, to the Vatadona Joint Venture Company. This was followed by the arrival of major investors such as Vedan, Vmep and Hualon.

Between 1994 and 1998, Dong Nai achieved a breakthrough as many FDI-funded factories were completed and put into operation, contributing significantly to industrial growth and other sectors. During this period, the province attracted major investors including Amata, Fujitsu, Kao, Samsung, Kolon, Chrysler, C.P. and Cargill. Dong Nai was recognized by central authorities as a pioneer in attracting the first wave of FDI into Vietnam.

The 7th Party Congress (1991) and the 8th Party Congress (1996) reaffirmed the policy of diversifying and multilateralizing external economic relations, providing a foundation for expanding investment from various countries and territories and proactively integrating into the global economy. FDI was identified as a key driver of industrialization and modernization. Amendments to the Law on Foreign Investment in 1996 and 2000 gradually relaxed investment conditions, expanded permitted sectors and encouraged technology transfer and supporting industries.

Seizing new opportunities, Dong Nai promptly implemented Party and State policies, creating a favorable environment for multinational corporations in industry, agriculture and infrastructure to invest in the province. FDI inflows have helped Dong Nai maintain economic growth rates consistently higher than the national average, create hundreds of thousands of jobs, and make significant contributions to the provincial budget.

Notably, on August 20, 2019, the Politburo issued Resolution No. 50-NQ/TW on orientations for improving institutions and policies and enhancing the quality and efficiency of foreign investment cooperation through 2030. The resolution emphasizes selective attraction of high-tech, environmentally friendly FDI closely linked with domestic enterprises.

At that time, former Dong Nai had already adopted selective FDI policies, prioritizing projects with advanced technology, environmental friendliness, lower labor intensity and high added value. On average, FDI enterprises contribute more than USD 1 billion annually, accounting for about one-third of the provincial budget revenue. In the former Binh Phuoc province, the Provincial leaders early identified the area’s potentials and advantages to shape investment-attraction space and promote the development of industry, agriculture and services in a modern and sustainable direction.

With favorable transport infrastructure and a strategic position linking the Central Highlands with Southeastern provinces, former Binh Phuoc province played a key role in the East–West economic corridor and served as a gateway for economic, cultural and social exchanges. In particular, with a border length of 258.939 kilometers adjoining the Kingdom of Cambodia, Binh Phuoc serves as an important gateway for trade and cooperation within the Cambodia – Laos – Viet Nam development triangle. Building on these advantages, following the merger of the former Dong Nai and Binh Phuoc provinces on July 1, 2025, the new Dong Nai province has seen its strengths and investment-attraction space emerge as a powerful magnet for foreign direct investment enterprises worldwide.

Commenting on the role of FDI in Vietnam, Associate Professor Dr. Tran Dinh Thien, former Director of the Vietnam Institute of Economics, noted that FDI plays a crucial role in the Vietnamese economy. Resolution No. 50-NQ/TW clearly states the need to build and refine institutions and policies on FDI in line with development trends, aligned with advanced international standards and harmonized with international commitments, while ensuring consistency, transparency and strong competitiveness. As Vietnam is a highly open economy with deep international integration, it is essential to promptly address existing shortcomings and bottlenecks in FDI cooperation policies. This, he said, would enable Vietnam to attract between USD 40–50 billion in high-quality FDI annually.

In the first 11 months of 2025, Dong Nai attracted more than USD 2.9 billion in FDI through 286 new and expanded projects, with nearly USD 2.1 billion invested in industrial parks and economic zones—exceeding the annual plan by over 10 percent.

A bright spot in FDI attraction

From the late 1980s to the early 1990s, Dong Nai province clearly recognized the importance of FDI to the local economy and promptly translated the Party’s and the State’s guidelines and policies on FDI cooperation into concrete actions. As a result, when the first wave of FDI flowed into Vietnam, the province proactively planned land use, strengthened transport infrastructure connectivity, and developed industrial parks (IPs) to welcome foreign investors.

Ishii Hiroyuki, General Director of Long Duc Investment Co., Ltd. (Japan-invested capital), shared that more than 10 years ago, the company invested in the infrastructure of Long Duc IP in Binh An commune, Dong Nai province. Since coming into operation, the IP has attracted nearly 90 FDI projects from various countries, with a total registered capital of nearly USD 2 billion. Over the past decade, not only the company itself but also many other FDI enterprises in Long Duc IP have repeatedly expanded their investment capital to scale up production. During the operation process, difficulties and obstacles faced by Long Duc Investment Co., Ltd. and enterprises in the IP have been promptly addressed by Provincial and local authorities. This is one of the important reasons why Dong Nai has consistently remained an attractive destination for Japanese investors and those from many other countries.

After nearly four decades, Dong Nai has attracted more than 2,200 FDI projects with total registered capital of nearly USD 42 billion, ranking among the top five localities nationwide in FDI attraction. The four countries and territories with the largest investment presence in the province are the Republic of Korea, Taiwan (China), Japan and Singapore. Currently, Dong Nai has 57 industrial parks with a total area of nearly 21,600 hectares and an average occupancy rate of over 76 percent. These achievements are the result of the swift and decisive implementation of investment opening policies in line with the Party’s and State’s guidelines.

Even before 2000, Dong Nai pursued selective FDI attraction policies, prioritizing modern, environmentally friendly and supporting-industry projects. As a result, the province shifted from trade deficit to trade surplus two years earlier than the national average, with annual trade surplus accounting for 30–40 percent of the national total.

To continue attracting FDI inflows into the province, at a meeting with a working delegation from Hyogo prefecture (Japan) in August 2025, Nguyen Minh Chien, Deputy Head of Dong Nai Economic and Industrial Zones Authority said that Dong Nai is one of the country’s leading industrial provinces, with more than 80 industrial parks planned, covering a total area of over 39,000 hectares. In addition, the province has planned 63 industrial clusters with a combined area of more than 3,700 hectares. In the coming period, Dong Nai is expected to provide large industrial land funds to attract investors to the province. Nguyen Minh Chien emphasized: “We hope to receive greater interest from potential investors to develop industrial parks in a modern and sustainable direction, with cleaner production, more efficient energy use, and stronger environmental friendliness in the time ahead.”

At meetings with Consuls General, Ambassadors, and foreign enterprises together with Provincial leaders, Tran Vu Hoai Ha, Deputy Director of the Department of Finance, said: “Dong Nai consistently focuses on improving the quality of FDI inflows into the province. As a result, the province has attracted many high-tech FDI projects with high added value and strong linkages with domestic enterprises participating in global supply chains.”

According to Tran Vu Hoai Ha, the province prioritizes the development of synchronous and modern infrastructure, digital transformation, and the creation of a favorable environment for investors. At the same time, Dong Nai has implemented various policies to support FDI enterprises, including administrative procedure reform, the development of e-government, the establishment of a special task force to assist investors, and the organization of regular dialogues between provincial leaders and the business community.

Thanks to a favorable investment environment, many major FDI groups such as Hyosung, Nestle, C.P., Bosch, Lixil, Formosa, Amata, Pouchen, and Changshin have chosen Dong Nai as a long-term investment destination and have continuously expanded their investment capital. FDI projects have created jobs for more than half a million workers from within and outside the province, contributing to the industrial development of Dong Nai and the country toward modernization, increased exports, and higher state budget revenues. In addition, FDI projects have also promoted the development of trade, services, and logistics for both the province and the nation.

By Huong Giang, Ngoc Lien – Translated by M.Nguyet, Thu Ha