Enhancing FDI quality in new development phase

Over nearly four decades, Vietnam has experienced four waves of foreign direct investment (FDI) inflows. Throughout all four waves, Dong Nai has consistently ranked among the country’s leading destinations for foreign investment. Thanks to its strategic position as a transportation gateway to the Southern Key Economic Region and its early development of industrial parks, Dong Nai has become a major destination for international investors.

To date, Dong Nai City has attracted more than 2,300 FDI projects from more than 50 countries and territories, with total registered capital of more than US$45 billion. Its early success in attracting FDI has given Dong Nai many advantages, with industry and services developing rapidly and many jobs created for workers from across the country. It has also made major contributions to export turnover, state budget revenue, and economic growth. However, because Dong Nai moved quickly to attract FDI, it has also faced significant challenges. Some factories that used modern technology at the time of investment have faced the risk of becoming outdated only a few years later as global supply chains changed rapidly. Therefore, FDI enterprises need to develop technology renewal plans for each stage to keep pace with global trends.

In fact, Dong Nai adopted a selective investment attraction strategy more than a decade ago. Priority has been given to less labor-intensive projects, employ advanced technologies, are environmentally friendly, and contribute to the development of supporting industries.

Particularly since 2020, when the fourth wave of FDI inflows emerged, Dong Nai has focused on attracting projects in high-tech sectors such as semiconductors, artificial intelligence (AI), modern logistics, and clean energy. Although several high-tech projects have been launched in Dong Nai, the scale and quality of investment have yet to fully reflect the city’s potential and advantages.

Dong Nai has planned 89 industrial parks, of which 44 are already operational. Between now and 2030, many additional industrial parks are expected to complete technical infrastructure development and begin attracting both domestic and foreign investors. All new investment projects must meet strict criteria, including the use of advanced technologies, low labor intensity, high localization rates, and strong value-added creation. At the same time, they must align with Vietnam’s commitments to gradually reduce carbon emissions and achieve net-zero emissions by 2050.

With its position as one of Vietnam’s leading industrial centers, a well-connected transport network, and numerous industrial parks undergoing large-scale infrastructure development, Dong Nai continues to attract strong interest from foreign investors in sectors such as industry, agriculture, real estate, trade, and services. The city has set a goal of developing Dong Nai into a modern industrial and urban center, a leading logistics hub, and a model for high-tech agriculture in Vietnam. Its development strategy focuses on modern, sustainable, and high-growth development. To achieve these objectives, Dong Nai must maintain rigorous selection criteria when approving new FDI projects.

Dong Nai remains a locality of significant interest to foreign investors. Therefore, the key challenge is not merely attracting more capital but selecting projects capable of creating new growth drivers for the city’s future development. Meanwhile, local authorities need to further improve the investment environment so that businesses can implement projects more efficiently and bring them into operation sooner. In addition, the city should introduce policies to encourage existing FDI enterprises with outdated technologies to modernize their equipment, build green and smart factories, and reduce their dependence on low-value-added processing activities.

By K. Minh – Translated by M.Nguyet, Minho