Practical realities affirm Vietnam’s sound strategy for attracting foreign investment (Part 1)

The strong influx of foreign direct investment (FDI) is one of the most notable successes in Vietnam’s nearly 40-year journey of renewal. Through the effective use of FDI, the country has maintained a key driver of growth, advanced technology transfer, and provided stable employment and income for millions of workers.

This has significantly contributed to shaping the overall socio-economic landscape of the nation in general and Dong Nai province in particular. Despite distortions or hostile narratives, reactionary groups cannot undermine the achievements in this field.

PART 1: VIETNAM - THE EPICENTER OF GLOBAL INVESTMENT APPEAL

Under the sound orientation of the renewal policy starting from the 6th National Party Congress, Vietnam’s National Assembly, for the first time in late 1987, adopted the Law on Foreign Investment. This laid the legal foundation for the economy to operate under a market mechanism with state management. Thanks to the Party and State’s timely and strategic decisions, investment flows have increasingly shifted toward the national priority of green and sustainable development, with Dong Nai, the industrial hub, standing out as a highlight.

Industrial parks have shifted towards rural areas, creating significant jobs for local workers.

The rising “heat” of foreign capital inflows into Vietnam

Nearly four decades of an open-door policy have paid off. According to the Foreign Investment Agency under the Ministry of Finance, Vietnam has attracted over USD 525 billion in registered FDI to date, with more than USD 330 billion in realized capital, making up over 64%, across more than 44,800 foreign-invested projects. These figures reflect the strong confidence of investors from 153 countries and territories, built on a stable political environment and robust advantages that make Vietnam a “promised land” for efficient business operations.

Lee Chang Dong, Deputy General Director of TKG Taekwang Vina Joint Stock Company in Bien Hoa 2 Industrial Park, said: “As a Korean enterprise speciali in producing Nike-branded athletic footwear for export, after 30 years of development, we now employ more than 35,000 workers with stable incomes and maintain annual export revenue exceeding USD 1 billion. Our remarkable success stems from the consistent support of Dong Nai’s leadership.”

Phuoc An Port is among the most modern ports in Vietnam, capable of receiving large vessels and serving as a key logistics hub of the region.

Even during the global downturn following the Covid-19 pandemic, when FDI flows dropped across continents, Vietnam remained firmly positioned as a standout destination. It continues to act as a “magnet” retaining existing investors and attracting new global corporations with strong capital absorption capacity, year after year. Vietnam’s active participation in free trade agreements and its strengthened international partnerships have further enhanced its competitiveness in the regional FDI race. Many economic experts forecast that 2026 will be a pivotal year for Vietnam to advance its appeal, especially in renewable energy.

In the first 11 months of 2025, Vietnam attracted nearly USD 33.7 billion in foreign investment, while the ratio of realized capital reached the highest level in five years. Dong Nai alone drew more than USD 3 billion; cumulatively, the province now hosts 2,230 valid FDI projects with USD 42.8 billion in capital.

The optimistic response has emerged following the strong institutional message conveyed by the top leadership of our Party and Government to global investors. This has become a key instrument for engaging and approaching strategic investors with long-term visions who share the same commitment to “greening” production. At the same time, investors around the world also recognize the remarkable shifts generated by a bold institutional reform wave, marked by profound improvements in policy harmonization and transparent, professional administrative procedures. These changes stem from an ongoing effort to streamline the state apparatus, driving governmental operations toward a service-oriented and development-enabling model, where the satisfaction of citizens and businesses is treated as the primary benchmark.

Two of Vietnam’s earlier advantages, low labor costs and a large workforce, are being replaced by institutional credibility and strategic infrastructure as key long-term drivers. By the end of 2025, the entire country will have completed more than 3,240 km of expressways and over 1,700 km of coastal roads, exceeding targets. Major national projects such as Long Thanh International Airport, urban railways, seaports, and energy infrastructure are coming into operation, contributing to shaping a new national profile.

Dong Nai exemplifies integrated, modern regional connectivity with all five modes of transport, anchored by the Long Thanh airport project. The province has also strengthened its appeal to investors, as the province consistently ranks among the top three nationwide in public service delivery and administrative procedure performance for both residents and businesses.

Bien Hoa – Vung Tau Expressway, a key route connecting to Long Thanh International Airport, is being expedited to meet the technical opening deadline of December 19. Photo: Collaborator

The momentum to accelerate the FDI attraction is being constantly and timely reinforced, as 42 projects in the industrial works category, listed in the agenda to celebrate the 14th National Party Congress, are set to simultaneously commence construction or be inaugurated nationwide on December 19. Among them are three industrial parks located in Dong Nai province: Long Duc 3, Bau Can - Tan Hiep (phase 1) and Xuan Que - Song Nhan (phase 1), covering a combined area of more than 2,240 hectares. The province is making urgent and concerted efforts to position itself as a pioneer in attracting strategic investors, expanding global supply chains and creating sustainable growth momentum for the southern key economic region.

A historic opportunity to attract high-quality capital flows

Vietnam now stands before a historic opportunity to attract high-quality capital flows in terms of technology and innovation. The government is developing a next-generation FDI attraction scheme to reposition its strategy and make the most of this “golden window” of opportunity.

David Lewis, Chairman and CEO of Energy Capital Vietnam (ECV), a U.S. investor with many years of experience in Vietnam, shared his view rooted in practical business insights: “Dong Nai is among the first localities nationwide to implement a green growth agenda, giving it a first-mover advantage in attracting foreign investment at a time when many global companies are prioritizing carbon reduction and green growth when choosing an investment destination. A proactive step the province can take on its green-growth journey is to set clear standards and policies for greener industrial operations, enabling this sector to lead in sustainable development. When businesses, programs, and projects come to Dong Nai, they should be required to meet those green standards.”

Import–export activities at Dong Nai Port remain bustling throughout the year.

Dong Nai has 81 industrial parks, one high-tech zone, and one economic zone planned with nearly 66,000 hectares. To date, 58 industrial parks have been established, 43 of which are operational with a 76% occupancy rate. The unanimous spirit of “One mind top to bottom”, smooth sailing across length and breadth” that has accelerated the implementation of Resolution 57-NQ/TW on breakthroughs in science, technology, innovation, and digital transformation—combined with the province’s strategic location—is opening up enormous opportunities for Dong Nai to become a highlight of attracting high-tech FDI flows.

Large multinational corporations are increasingly turning to Vietnam, and Dong Nai stands out as a trusted destination for high-tech sectors such as semiconductors, artificial intelligence, biotechnology, and new materials, led by  high-value industries including electronics, automotive components, semiconductors, and green technologies. This will help form a sustainable innovation ecosystem, anchored in technology transfer and the goal of upgrading domestic enterprise capabilities.

This fundamental step enables Vietnam to move beyond the advantage of being merely an attractive destination for global technology corporations, giving the country a genuine opportunity to shift its growth model from the traditional path toward one driven by innovation, high technology and sustainability. Therefore, it is no surprise that Vietnam has risen to 44th out of 139 countries and territories surveyed in the Global Innovation Index 2025, partly thanks to this “breakthrough leap” in transforming its investment ecosystem.

 “Semiconductor companies are actively seeking opportunities in the planned development zone surrounding Long Thanh International Airport. Dong Nai should be fully prepared to embrace this prospect.” - Associate Professor Dr., Economic Expert Tran Dinh Thien.

Pham Van Trinh, Member of the Provincial Party Committee, Director of the Dong Nai Department of Science and Technology, stated that the Resolution of Provincial Party Congress targets the digital economy to contribute more than 30% of GRDP by 2030. A central pillar of this plan is the development of the Long Thanh Digital Technology Park. The province is preparing a master plan for roughly 117 hectares, aiming to begin rapid infrastructure development in 2026. The park will offer extensive incentives on land and taxes, with expected annual revenue of at least VND 19 trillion and a projected increase of 5–10% in the province’s digital economy share.

Transport infrastructure for regional connectivity is being synchronously developed, fueling strong FDI flows into Dong Nai.

Dong Nai still has abundant industrial land reserves, coupled with its right timing and prime location advantages, making the province an attractive place for major global corporations – the “eagles” – to come and “build their nests”. Recently, the Provincial Party Standing Committee has consistently provided leadership and direction to intensify investment promotion efforts, with the expectation that the province will attract several more billion USD in new investments from major corporations during this period.

Speaking at a non-regular conference of the Dong Nai Provincial Party Committee on September 20, 2025, Secretary of the Provincial Party Committee and Head of Dong Nai’s National Assembly Delegation Vu Hong Van emphasized that investment attraction must identify priorities for each phase, avoid equal allocation, and focus on transparency, safety, ease of implementation, and competitive costs, thereby ensuring competitiveness both regionally and nationwide. The Provincial People’s Committee has introduced numerous new initiatives and effective practices, supported by experienced and capable officials in investment promotion. The province must continue selecting investors with the best planning capacity and strongest competencies, while ensuring the fastest possible project implementation to avoid losing development opportunities.

He stressed: “In the immediate term, Dong Nai must develop infrastructure to drive growth. Once infrastructure is in place, all land advantages will be unlocked. This is a mission that must be fulfilled, at all costs.”

The vast planning area around Long Thanh Airport offers an ideal destination for major global investors. Photo: Collaborator

Amata Industrial Park is piloting an eco-industrial park model.

Vietnam remains steadfast in its overarching path of building a socialist-oriented market economy, even as the market mechanism itself is not yet fully developed. At the same time, the country ensures that its policies do not exhibit an excessive “misalignment” compared to those of other nations. The country’s dynamic, creative and flexible approach, together with its determination to remove structural bottlenecks one by one, has enabled Vietnam to overcome barriers and emerge as a vibrant destination for successive waves of FDI inflows. This momentum is helping transform external resources into internal strength, contributing to building an independent and self-reliant economy capable of withstanding external shocks while advancing toward a future of prosperity and national strength in the new era.

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