Practical realities affirm Vietnam’s sound strategy for attracting foreign investment (Final part)

Final part: Foreign investment – an important constituent of the economy

Vietnam has emerged as a safe and attractive destination, reaping tangible benefits brought by foreign direct investment (FDI) flows across multiple dimensions. By leveraging this powerful momentum of “leapfrogging,” the country has been able to shorten its development trajectory and enhance the intrinsic capacity of the national economy. There is no room for doubt about this reality. Deliberate attempts to “split hairs” for subversive purposes can never distort the truth and will inevitably be left behind by the wheel of history of a nation that upholds self-reliance, self-strengthening, unity, and devotion to the aspiration for prosperity and happiness.

Positioning Vietnam as a green and sustainable investment destination

The draft documents of the 14th National Party Congress highlight major shifts in theoretical awareness regarding Vietnam’s socialist-oriented market economy. Specifically, they reflect a transition from a “closed” development mindset to an open, proactive and active approach to international integration, closely associated with building an independent and self-reliant economy. The evolution has moved from rejection, to acceptance, and ultimately to the firm affirmation that “foreign investment is an important constituent of the economy,” with the foreign-invested sector encouraged to develop in alignment with overarching socio-economic strategies, planning and development plans.

A corner of Dau Giay Industrial Park (IP). Photo: Collaborator

Starting from zero FDI capital, Vietnam boldly overcame concerns during the pre-renovation period nearly four decades ago and gradually broke records of its own making in attracting foreign investment. From reaching the milestone of attracting USD 1 billion in registered FDI in 1991, the country progressively shaped FDI as a crucial resource for its long-term development, with total registered capital reaching USD 185 billion during the current term. Therefore, it comes as no surprise that Vietnam’s total import-export turnover from early 2025 to mid-November surged past the historic threshold of over USD 800 billion. The trade balance has maintained a substantial surplus, exceeding USD 88 billion throughout the term, more than double that of the previous term, and marking nearly a decade of consecutive trade surpluses since 2016. These inevitable achievements are closely linked to relentless efforts in building and improving a legal framework consistent with international standards, accelerating public investment disbursement for strategic infrastructure, selectively prioritizing investment sectors, and providing online public services for enterprises. As a result, Vietnam has become a trusted destination, attracting the strong presence of major global brands and securing its position as a critical link in global supply chains.

With a cautious yet proactive and adaptive mindset, Vietnam’s economic vessel has steadily sailed into deeper waters. The competitiveness of Vietnam’s economy has improved markedly, with sufficient resilience to withstand external shocks and maintain one of the world’s highest growth rates. In 2025 alone, growth is projected to exceed 8 percent.

Addressing the 10th session of the 15th National Assembly on October 20, Prime Minister Pham Minh Chinh stated that Vietnam’s GDP in 2025 is estimated to surpass USD 510 billion, 1.4 times higher than in 2020, ranking 32nd globally. GDP per capita is expected to reach around USD 5,000, officially placing Vietnam among the upper-middle-income countries.

Capitalizing on the strong appeal of FDI, this source of capital continues to be regarded as one of the key drivers enabling Vietnam to achieve a double-digit growth, with firm determination to strive toward becoming a developed, high-income country. Politburo Resolution No. 50-NQ/TW on orientations for improving institutions and policies and enhancing the quality and efficiency of foreign investment cooperation toward 2030 sets the target of attracting around USD 200–300 billion in registered FDI during the 2026–2030 period (USD 40–50 billion per year), of which, realized capital is expected to reach approximately USD 150–200 billion (USD 30–40 billion per year).

Sharing the same commitment to pursuing pillars that carry a “vital” significance for maintaining positions in global supply chains, including sustainable development, climate action and green innovation, Viet Nam and its investment partners easily find common ground to jointly shape a better future for all parties involved.

The draft Political Report of the 13th Party Central Committee, prepared for submission to the 14th National Party Congress, emphasizes the establishment of a new growth model, economic restructuring, accelerated industrialization and modernization, with science, technology, innovation and digital transformation as key drivers. The foreign-invested economic sector is affirmed as playing an important role, with selective attraction of FDI projects, focusing on high-tech and low-emission industries, increased indirect investment, especially from investment funds, and stronger linkages between FDI enterprises and domestic firms to facilitate technology transfer, management skills and human resource development; gradually forming an ecosystem and strengthening value-chain connections between foreign-invested enterprises and domestic firms. In this regard, the draft Action Programme to implement the Resolution of the 14th National Party Congress also underscores the development of a socialist-oriented market economy, with a focus on enhancing connectivity between the foreign-invested economic sector and Vietnam’s domestic economic sectors.

Long Thanh International Airport is expected to become a powerful magnet for future FDI inflows. Photo: Collaborator

Dong Nai provincial leaders have identified industry as the core pillar of the economic structure, fulfilling the province’s role as one of the nation’s economic locomotives and creating livelihoods for a large workforce from across the country. With a pioneering spirit in addressing major and complex challenges, the province is accelerating the restructuring of development space and renewing growth drivers, centered on Long Thanh International Airport and the Dong Nai River basin.

Truth cannot be distorted

Ho Chi Minh City’s Ring Road 3 is nearing completion. Photo: Collaborator

The FDI sector has made significant contributions to Vietnam’s economic growth, accounting for over 70 percent of export turnover, more than 20 percent of GDP, and directly creating jobs for over 5 million workers, alongside a large number of indirect jobs.

Despite this vivid and positive FDI landscape, hostile forces on social media platforms persist in spreading distorted and fabricated information with malicious intent. They often exaggerate isolated incidents, generalize them into false narratives, and aim to undermine public confidence, damage Vietnam’s investment environment, and deny the leadership role of the Communist Party of Vietnam and the State’s governance of the socialist-oriented market economy.

They often lie in wait, “sniffing out signals,” and whenever the Party and the Government of Vietnam issue important economic policy decisions, they immediately jump in with mockery and slander, seeking to undermine the credibility of the Party and the State in economic development, while obstructing the country’s development and integration process. Most evident is the fact that ill-intentioned actors deliberately spread claims that Vietnam’s economy is being dominated and manipulated by foreign capital, that it is entirely “dependent” on foreign enterprises, losing control and even surrendering economic sovereignty. Such groundless assertions are aimed at creating unwarranted anxiety among the gullible. More dangerously, some go so far as to fabricate outright falsehoods, alleging that “investors are fleeing Vietnam en masse” due to the so-called economic backwardness and crisis.

SiKico IP, Tan Khai commune, Dong Nai province. Photo: Collaborator

Meanwhile, reputable international economic institutions have acknowledged that the “health” of Vietnam’s economy remains resilient, dynamic and more promising than ever. This economy has been built on a socialist-oriented market economy model, in which Vietnam effectively leverages market principles while ensuring the State’s role in management and regulation, harmonizing economic efficiency with social equity and leaving no one behind. From the Central level to grassroots authorities, there is a clear and consistent consensus that attracting FDI is not merely about pursuing quantity. Instead, priority is placed on being one step ahead in upgrading transport infrastructure, developing social housing facilities for workers, firmly putting environmental protection at the forefront, and resolutely rejecting projects that rely on outdated technologies, pose pollution risks, or are excessively labor-intensive.

Moreover, policies on reform and innovation aimed at improving the operational efficiency of state-owned enterprises, together with the consistent orientation of promoting the private sector as the most important driving force of the economy, in parallel with enhanced attraction of foreign investment, have been pursued by Vietnam in a steadfast and sustained manner. These efforts have contributed to creating a balanced relationship among key economic sectors, thereby consolidating the overall strength of the national economy and laying a solid foundation for sustainable development.

Communes in the western part of Dong Nai Province still hold ample room for development. Photo: Collaborator

The process of drafting documents for the upcoming 14th National Party Congress has been conducted with a spirit of frankness, truthfulness and comprehensiveness, boldly identifying most of the “bottlenecks” that must be resolved promptly to avoid higher costs in the future. These include institutional constraints, taxation, digital economic corridors and shortages of high-quality human resources. Vietnam in general, and Dong Nai in particular, stands before opportunities to form a “super-region” following administrative unit mergers, though time is still needed to complete stable institutional frameworks.

More than four decades of practical experience have provided a compelling answer, demonstrating that Vietnam possesses sufficient resolve, intellectual capacity and strategic foresight to chart a distinct path in expanding its footprint on the global FDI map, advancing to higher rungs of the global value chain, while steadfastly maintaining independence and self-reliance, without becoming dependent on any partner. No one has the right to question the authenticity of this evident reality, which has taken deep root and proven its resilience in Vietnam’s practical development. Those acting with malicious intent to undermine it are, in fact, left with little ground to justify their baseless slanders. As such, their futile attempts deserve no further attention.

By Thanh Hai, Hoang Thu – Translated by M.Nguyet, Thu Ha