The event brought together nearly 200 domestic and international delegates and was one of the key activities within the framework of the 24th Golden Dragon Program. It served as a platform to reflect on the flow of foreign direct investment (FDI) in Vietnam and to define strategic directions suitable for the new development phase.
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In her opening remarks, Ms. Trần Thị Hồng Minh – Director of the Institute for Policy and Strategy Research – emphasized that the FDI sector remains a key driver of Vietnam’s economic growth. In the first quarter of 2025 alone, Vietnam attracted more than USD 11 billion in FDI, a 34.7% increase year-over-year – a positive signal despite ongoing global economic challenges. Vietnam is currently among the top 15 developing countries in FDI attraction, reflecting the increasing appeal of its market and investment environment.
However, subsequent presentations also candidly pointed out existing bottlenecks. Speaking at the forum, Mr. Nguyễn Hồng Sơn – Deputy Head of the Central Economic Commission – acknowledged the vital role of FDI in the economy but noted various limitations. The number of enterprises has increased rapidly, yet localization rates remain low, and linkages with domestic firms are weak. Investors face challenges due to administrative procedures, infrastructure, and workforce quality. He proposed prioritizing high-tech and environmentally friendly FDI inflows, applying scheduled inspections instead of surprise checks to ensure a fair and transparent investment climate. He also called for more investment in underdeveloped regions and strong actions against transfer pricing and "shadow" investments that distort the market.
Deputy Minister of Finance, Mr. Đỗ Thành Trung, noted that while FDI enterprises have grown in number, their contributions in terms of technology transfer, added value, and innovation remain limited. Weak linkages between FDI and local enterprises, low localization rates, and persistent administrative, tax, and infrastructure hurdles were highlighted as persistent issues. He reinforced the need for institutional reform to enhance international cooperation, improve growth quality, and attract sustainable, high-tech FDI.
From the perspective of agriculture and the environment, Deputy Minister Võ Văn Hưng shared that Vietnam has attracted 729 FDI projects in these sectors with a total capital of nearly USD 11.89 billion, creating around half a million jobs. However, most of these projects are small-scale, unevenly distributed, and poorly integrated with local cooperatives and farmers. Technology transfer remains ineffective. He proposed a shift from an agricultural production mindset to an agricultural economy model, emphasizing local branding, ecological approaches, and increased investment in sustainable natural resource and environmental sectors.
According to Mr. Lim Dyi Chang, Country Head of UOB Vietnam, Vietnam remains an attractive destination for foreign capital thanks to its young workforce, competitive costs, and favorable geography. However, he agreed that to sustain this advantage, Vietnam must improve domestic connectivity and enhance the capacity of local enterprises to effectively collaborate with global corporations and integrate into international value chains. Notably, while FDI enterprises make up only about 3% of all businesses, they account for 74% of Vietnam's exports. Yet, the number of Vietnamese companies genuinely integrated into global supply chains remains small – and is declining.
The highlight of the forum was a deep-dive panel discussion where experts, policymakers, and business leaders explored practical solutions to improve the effectiveness of FDI in the new context. One key question raised was: “How can we effectively connect the three economic pillars – the state sector, the domestic private sector, and the FDI sector – to create strong, unified momentum for development?” This was deemed a critical issue, as experts noted that these three sectors currently operate in silos, lacking coordination and mutual support. This disconnect has fragmented development efforts, left potential untapped, and hindered the formation of a cohesive growth engine.
Speakers also underscored the urgent need to develop a high-quality workforce that meets the growing demands of the modern economy. Vietnam must implement a clear strategy to train and upskill labor, enabling workers not only to meet FDI recruitment needs but also to participate more deeply in global value chains. Infrastructure was also highlighted as a key factor in improving productivity, reducing costs, and enhancing the competitiveness of “Made in Vietnam” products in global markets.
Another key point raised in the discussion was Vietnam’s need to focus more on acquiring and mastering high technologies instead of remaining merely a low-tech manufacturing hub. As emphasized by General Secretary Tô Lâm, many FDI enterprises in Vietnam still primarily operate in basic manufacturing using low-level technology. The inability to own and develop mid- to high-level technologies has limited the value Vietnam derives from its FDI sector, falling short of its true potential.
The forum concluded with a shared understanding that an effective FDI strategy in the new era must go beyond capital attraction; it must be a strategy of "connection and co-creation". Connection not only between investors and government, but also across all economic sectors – with each playing an irreplaceable role. And co-creation must not be left to the government alone, but should be a collective journey – where the public sector, private enterprises, and FDI companies all share responsibility in building a dynamic, innovative, and sustainable economy.
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