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Vietnam is accelerating its transformation into a regional innovation powerhouse. With the issuance of Resolution No. 57-NQ/TW in December 2024, the country has committed to a bold, strategic overhaul of its science, technology, and innovation (STI) ecosystem. For foreign direct investors (FDIs), this resolution is more than a policy document—it’s a roadmap to a more dynamic, tech-driven, and globally integrated Vietnamese economy.

A National Strategy for Innovation and Digital Transformation

Resolution 57-NQ/TW outlines Vietnam’s vision to become a science- and technology-led nation by 2030, with a longer-term goal of achieving global competitiveness by 2045. The resolution is part of a broader national effort to:

This strategic pivot is designed to attract high-quality investment, especially in sectors that align with Vietnam’s innovation priorities.

Key Goals and Timelines

Target YearStrategic Milestone
By 2030Vietnam becomes a developing country with modern industry and upper-middle income, driven by STI
• R&D investment to reach 2% of GDP
• Digital economy to contribute 30% of GDP
• Top 3 in ASEAN for AI research and development
• 100% of public services at level 4 available online
• At least 70% of enterprises using digital platforms
By 2045Vietnam becomes a developed, high-income country with a globally competitive innovation ecosystem
• Top 30 globally in Global Innovation Index (GII)
• At least 5 Vietnamese tech firms with regional/global influence
• Digital economy contributes over 50% of GDP
• Science and technology workforce accounts for 1.5% of total labor force

What Resolution 57-NQ/TW Means for Investors

1. A Favorable Legal and Policy Environment

The resolution mandates the removal of institutional bottlenecks and the creation of a synchronized legal framework for science, technology, and innovation. This includes:

For FDIs, this means lower compliance risks, greater legal clarity, and enhanced protection of proprietary technologies.

2. Strategic Investment in High-Tech Sectors

Vietnam is prioritizing investment in:

Foreign investors in these sectors can expect preferential policies, tax incentives, and access to national innovation programs.

3. Public-Private Partnerships and Global Integration

Resolution 57 encourages international cooperation and public-private partnerships (PPPs) to:

This opens the door for FDIs to collaborate with Vietnamese institutions, co-invest in innovation ecosystems, and scale regionally from a Vietnamese base.

4. Digital Transformation as a National Priority

Vietnam is embedding digital transformation across all sectors. The resolution supports:

Investors in digital infrastructure, cloud services, fintech, and edtech will find a rapidly expanding market with strong government backing.

Institutional Reforms and Governance

To ensure effective implementation, the resolution proposes:

These reforms aim to streamline decision-making, reduce bureaucratic delays, and ensure accountability—key concerns for foreign investors.

Opportunities for Foreign Direct Investors

FDIs can benefit from Resolution 57 in several ways:

Vietnam’s growing middle class, digital-savvy population, and strategic location in ASEAN further enhance its attractiveness as an innovation hub.

Challenges to Watch

While the resolution is ambitious, investors should be mindful of:

However, the government’s commitment to institutional reform, international cooperation, and human capital development suggests these challenges are being actively addressed.

Conclusion: A New Era for Investment in Vietnam

Resolution 57-NQ/TW marks a turning point in Vietnam’s development strategy. It signals a clear shift toward a knowledge-based economy, where science, technology, and innovation are central to national growth.

For foreign investors, this is a unique opportunity to align with Vietnam’s long-term vision, tap into a vibrant innovation ecosystem, and contribute to shaping the future of one of Asia’s most promising economies.

At Viettonkin Consulting, we are ready to help you navigate this evolving landscape—whether you're entering Vietnam for the first time or expanding your innovation footprint.

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Introduction

Vietnam is entering a pivotal phase in its economic transformation, guided by two landmark policy frameworks: Resolution No. 68-NQ/TW on private sector development and Resolution No. 57-NQ/TW on science, technology, innovation, and digital transformation.

This publication outlines the strategic goals, policy directions, and investment opportunities emerging from Resolution 68—offering foreign investors a clear roadmap to engage with Vietnam’s dynamic and evolving private economy.

I. Strategic Goals for 2030

While Resolution 57, issued by the Politburo in December 2024, lays the groundwork for a national breakthrough in innovation and digital infrastructure, Resolution 68 builds upon this foundation by positioning the private sector as the primary engine of economic growth. Together, these resolutions form a cohesive strategy: one that empowers private enterprises to lead in innovation, integrate into global value chains, and drive sustainable development.

Key Targets by 2030:

These targets reflect Vietnam’s commitment to building a resilient, innovative, and globally competitive private sector.

II. Vision to 2045: A Global Private Sector Powerhouse

Looking further ahead, Vietnam envisions a private economy that is not only strong domestically but also globally influential.

2045 Vision Highlights:

This long-term vision aligns with Vietnam’s broader national development goals and its aspiration to become a high-income country by mid-century.

III. Strategic Pillars and Policy Solutions

To realize these ambitious goals, Vietnam has outlined a comprehensive set of 8 strategic tasks and solutions. These are designed to create a favorable environment for private sector growth and to attract both domestic and foreign investment.

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1. Shifting Mindsets and Building Consensus

Vietnam is fostering a pro-business culture that encourages entrepreneurship, innovation, and national pride. This includes:

2. Institutional and Legal Reform

A robust legal framework is essential for investor confidence. Key reforms include:

These reforms aim to create a transparent, predictable, and equitable business environment.

3. Enhancing Access to Resources

Vietnam is committed to improving private sector access to:

4. Driving Innovation and Sustainability

The government is prioritizing:

Support mechanisms include R&D incentives, technology transfer programs, and digital infrastructure development.

5. Strengthening Enterprise Linkages

Vietnam aims to build a cohesive business ecosystem by:

6. Scaling Up Enterprises

The government is facilitating the growth of medium and large private enterprises, with the goal of forming regional and global private economic groups. This includes:

7. Supporting Small and Micro Businesses

Recognizing their vital role in the economy, Vietnam is providing targeted support for small, micro, and household businesses. This includes:

8. Fostering Business Ethics and Entrepreneurial Culture

In the spirit of promoting business ethics, social responsibility and entrepreneurial spirit, while creating favourable conditions for businessmen to participate in national governance, Vietnam’s commitment includes:

8.1. Building a Model Entrepreneurial Community

8.2. Promoting Entrepreneurial Spirit

8.3. Honoring and Rewarding Excellence

8.4. Strengthening State–Enterprise Relations

8.5. Expectations for Enterprises and Entrepreneurs

8.6. Enhancing the Role of Business Associations

8.7. Developing Party and Youth Union Organizations within Enterprises

IV. Implications for Foreign Investors

Vietnam’s private sector roadmap offers significant opportunities for foreign direct investors, particularly in:

With a clear policy direction, strong government support, and a rapidly growing domestic market, Vietnam is emerging as a strategic destination for long-term investment.

Conclusion

Vietnam’s vision for its private sector is bold, strategic, and inclusive. By 2030 and beyond, the country aims to become a regional leader in innovation and private enterprise, offering a fertile ground for both domestic and international investors.

At Viettonkin Consulting, we are committed to helping investors navigate this evolving landscape. Whether you are exploring market entry, expansion, or partnerships, our team is here to provide tailored insights, legal guidance, and strategic support.

Let’s build the future of Vietnam’s private economy—together.

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Donald Trump’s second term as U.S. President has ushered in a wave of sweeping policy changes under the banner of “America First.” His administration’s renewed focus on protecting domestic industries, fostering energy independence and recalibrating international trade relations has had significant implications worldwide. Among the nations most affected by these changes is Vietnam, a vital trade partner of the United States. With tariffs emerging as a cornerstone of Trump’s policies, the economic and trade relationship between Vietnam and the U.S. is set to evolve in complex ways. This Blog Article examines Trump’s broad policy landscape and its specific impact on Vietnam-U.S. trade relations, with a focus on the administration’s tariff-centric approach.

Implications to Vietnam

From the outset of his second term, Trump signaled a strong commitment to reshaping U.S. trade policy. Central to this effort is the “America First Trade Policy,” which prioritizes reducing trade deficits and protecting American industries through expanded use of tariffs. His administration has proposed investigations into global trade imbalances, with measures such as a "global supplemental tariff" to address them. Vietnam, which ranks third among nations contributing to the U.S. trade deficit, faces potential tariffs ranging from 10% to 20%. This places Vietnam in a challenging position, as higher tariffs could significantly impact key export sectors like textiles, electronics, and furniture. These industries, which are critical to Vietnam’s economy, may lose their competitive edge in the U.S. market due to increased costs.

U.S.-China Trade War: A Blessing In Disguise for Vietnam

At the same time, Trump’s policies have also created opportunities for Vietnam. The ongoing U.S.-China trade war has led many multinational corporations to seek alternative manufacturing hubs, and Vietnam has emerged as a prime destination. With its strategic location, competitive labor costs and robust industrial infrastructure, Vietnam is well-positioned to attract investments diverted from China. This shift could bolster Vietnam’s industrial real estate and logistics sectors, enabling the country to strengthen its role in global supply chains. However, the potential benefits are tempered by risks of increased scrutiny. Concerns over the use of Chinese-origin materials in Vietnamese exports may lead to stricter trade investigations, complicating Vietnam’s trade relationship with the U.S.

Climate, Energy and the Environment

Energy policy is another area where Trump’s administration is driving significant changes with implications for Vietnam. The push for energy dominance includes boosting domestic production of fossil fuels and expanding exports, particularly liquefied natural gas (LNG). These measures offer Vietnam an opportunity to diversify its energy imports while addressing its trade surplus with the U.S.

Energy cooperation could become a cornerstone of the bilateral relationship, fostering closer economic ties. Simultaneously, Vietnam must also navigate the broader challenges posed by Trump’s fiscal and monetary policies. A strengthened U.S. dollar, resulting from these policies, could make Vietnamese goods more expensive in the U.S. market, potentially reducing their competitiveness and impacting export revenues.

Foreign Direct Investment

vietnam's relations with the united states
Photo: The Economic Times

Foreign direct investment (FDI) also plays a critical role in Vietnam’s economic growth, and Trump’s policies have indirect implications in this area. As companies seek to diversify supply chains and reduce reliance on China, Vietnam has become an attractive destination for FDI. U.S. businesses have already invested over $12 billion in Vietnam across sectors such as manufacturing, technology, and services. This trend is likely to continue, further bolstering Vietnam’s industrial growth and economic resilience. However, Vietnam must address regulatory and compliance risks to maintain its position as a reliable trade and investment partner. Transparent practices and adherence to international trade norms will be essential in navigating these complexities.

The economic relationship between Vietnam and the U.S. has deep roots, with trade and investment ties expanding significantly over the years. In 2022, bilateral trade reached $142.1 billion, with the U.S. importing $127.5 billion worth of goods from Vietnam. Key Vietnamese exports included textiles, electronics and furniture, which have consistently driven growth in trade relations. The U.S., on the other hand, exported $11.4 billion worth of goods to Vietnam, including raw cotton, soybeans and high-tech products. Services trade has also seen substantial growth, with U.S. exports to Vietnam totaling $2.4 billion in 2022, driven by sectors like travel, transportation and financial services.

Despite these impressive trade figures, the imposition of tariffs under Trump’s second-term policies could disrupt the balance. Higher costs for Vietnamese goods in the U.S. market may dampen demand, forcing Vietnam to explore new markets or innovate to maintain its competitive edge. Additionally, the U.S. administration’s focus on investigating trade deficits and unfair practices could lead to further challenges. Vietnam’s reliance on Chinese-origin materials in its exports may invite stricter regulatory scrutiny, requiring the country to implement measures to address these concerns proactively.

Conclusion

Looking ahead, the relationship between Vietnam and the U.S. will hinge on how both nations adapt to the evolving trade landscape. Vietnam’s ability to attract FDI, enhance its industrial infrastructure and comply with international trade norms will be crucial in maintaining its position as a key U.S. trade partner. For the U.S., fostering a balanced and mutually beneficial trade relationship with Vietnam aligns with its broader strategic goals in the Asia-Pacific region.

Trump’s second-term policies represent a significant shift in the global trade paradigm, with tariffs as a central tool for achieving economic and political objectives. For Vietnam, these changes present both challenges and opportunities. By leveraging its strengths and addressing potential risks, Vietnam can navigate this complex landscape and continue to thrive as a vital player in global trade.

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Vietnam and India share a long-standing relationship, grounded in robust historical, cultural, and economic ties. In recent years, this partnership has expanded significantly, with foreign direct investment (FDI) playing a pivotal role in cementing economic collaboration between the two nations. This Blog Article explores the latest FDI statistics and bilateral trade developments, offering insights into the growing partnership and the vast potential for further collaboration.

Current State of Indian Investments in Vietnam

India currently ranks as the 25th largest investor among 146 countries and territories in Vietnam, with 407 projects amounting to a total registered capital exceeding 1.02 billion USD. When factoring in indirect investments, this figure climbs to an impressive 3 billion USD. Indian investors view Vietnam as a prime destination across various industries, including IT, pharmaceuticals, smart agriculture, and infrastructure development. Historically, Godrej Vietnam became the first Indian company to establish a production facility in Vietnam in 1994 at the Binh Duong Industrial Park. Since then, major corporations such as TATA, Marico, Wipro, and KCP have recognized Vietnam’s dynamic market as an essential part of their global strategies. Supporting this growing collaboration is the improved air connectivity between the two nations. Direct flights now link Indian cities like Delhi, Mumbai, and Bangalore to Hanoi and Ho Chi Minh City, significantly facilitating trade and investment.

Vietnam’s 2024 FDI Landscape

The year 2024 has been remarkable for Vietnam in terms of foreign investment attraction. Between January and December, the country successfully initiated 48 new projects, which brought in a registered capital of 2.79 million USD. Additionally, five projects underwent capital adjustments, adding 74.55 million USD to their initial investments. In terms of equity contributions and share purchases, there were 75 transactions, contributing 9.36 million USD. Collectively, these investments pushed Vietnam’s total registered capital for the year to 86.69 million USD, reflecting a year-on-year growth of 64.2 percent. Since the start of its foreign investment journey in 1988, Vietnam has accumulated 40,285 foreign investment projects, with a total registered capital exceeding 481 billion USD. Such figures underscore the nation’s consistent growth as a preferred destination for global investors.

Bilateral Trade - Achievements and Opportunities

Bilateral trade between India and Vietnam has witnessed exponential growth over the years. From a modest 200 million USD in 2000, the trade volume surged to 15.1 billion USD in 2022 and 14.3 billion USD in 2023. Despite these achievements, the potential for greater collaboration remains immense, given the complementary strengths and extensive market sizes of both countries. Efforts to tap into these opportunities were evident at the Conference on Promoting Investment, Trade, and Tourism Development in Binh Dinh Province. This event saw active participation from Indian corporations, resulting in the signing of several memoranda of understanding. Key agreements included collaboration in robotics, timber, tourism, and education, with the Indian Robotics Association taking a keen interest in developing the robotics industry in Binh Dinh.

Binh Dinh Province serves as a Hub for Indian Investment

Binh Dinh Province is an attractive location for Indian Investors
Photo: VinWonders

Binh Dinh Province has emerged as a promising hub for Indian investments due to its strategic focus on infrastructure development. The province has made significant upgrades, including enhancing its deep-water seaports, expanding airport facilities, and adding industrial parks. Infrastructure leasing costs are notably competitive, ranging from 25 to 60 USD per square meter over 50 years, making it an attractive proposition for foreign investors. However, Indian investments in the province remain modest, with only four projects totaling 3.24 million USD. This disparity highlights the untapped potential in high-growth sectors such as clean energy, innovation, digital transformation, high-tech agriculture, and healthcare.

Vietnam’s Economic Outlook

Vietnam’s economy continues to outpace its ASEAN counterparts, with the IMF projecting it to remain the fastest-growing economy in the region and rank among the top ten in Asia from 2024 to 2029. Despite facing challenges at both international and domestic levels, Vietnam has demonstrated resilience, achieving significant milestones in socio-economic development during the first quarter of 2024. International organizations have consistently praised the country’s economic performance and growth prospects, further solidifying its reputation as a leading investment destination.

Ending Note for Indian Investors

With shared aspirations and strategic alignment, India and Vietnam are poised to unlock unprecedented opportunities in their economic partnership. Existing infrastructure in regions like Binh Dinh, coupled with emerging sectors ripe for innovation, provides a strong foundation for growth. Indian businesses have a unique opportunity to shape the future of this bilateral relationship, leveraging Vietnam as a gateway to success in Southeast Asia. As the momentum for collaboration continues to build, the potential for profound and enduring partnerships between these two nations remains limitless.

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Setting the Stage

Let's begin by examining recent developments in Vietnam's semiconductor market. In late 2023, Intel – one of the world’s leading semiconductor manufacturers – made the decision to halt its multi-billion-dollar investment in Vietnam. At first glance, this appears to be a significant setback for Vietnam’s semiconductor industry. However, soon after, another striking event unfolded. Nvidia, a globally renowned semiconductor giant, announced a partnership with FPT, an Information Technology service company in Vietnam, to develop an AI chip ecosystem. So, what’s really going on here? Is Vietnam’s semiconductor market losing its appeal? Or could this be a calculated move to align with emerging trends in the country's semiconductor landscape? Today’s blog article will offer fresh insights into this intriguing issue.

Intel's Setback

In recent years, Intel’s dominance in the semiconductor market has faltered. Once holding a 50-70% market share, Intel saw its lead diminish starting in Q1 2020 as the gap with AMD began to close. Experts now predict AMD will soon overtake Intel and become the market leader, surpassing its long-time rival.

Intel's revenue dropped from $79 billion in 2021 to $55 billion by June 2024, driven by weak CPU demand. In 2023, Intel experienced a 31% revenue decline dropping to $18.9 billion, which is largely attributed to challenges in its foundry business.  Following the submission of its financials to the US Securities and Exchange Commission (SEC), Intel's stock declined by 4.3%.

In 2024, Intel's CEO, Pat Gelsinger, announced a Q2 net loss of $1.61 billion, with further losses expected. Intel has also  delayed the construction of two major chip plants in Germany and Poland, citing reduced demand—a considerable setback for both the company and the respective governments.. Meanwhile, Asia continues to dominate as the global semiconductor hub, housing over 80% of production capacity. Taiwan, Japan, and China lead the region, with China alone contributing 27%.

Intel’s decision to withdraw investment from Vietnam and redirect it to European countries has raised questions about its effectiveness. However, is this truly the primary reason for Intel’s current challenges?

What Are the Real Causes?

Intel is facing significant challenges due to emerging trends in the global semiconductor market, particularly the rapid advancement of AI chip technology. The AI chip industry, valued at $45.5 billion in 2021, is expected to grow substantially, with the market projected to reach $311.58 billion by 2029, reflecting a compound annual growth rate (CAGR) of 20.4%. Meanwhile, global investment in AI is skyrocketing, with major contributions from India, South Korea, China, and Saudi Arabia, amounting to a total of $380 billion. This boom is driving semiconductor growth, with companies like Nvidia and TSMC demonstrating strong performance.

This is likely the main reason behind Intel’s recent decline, rooted in a critical misstep by its leadership. About seven years ago, Intel had the opportunity to acquire shares in OpenAI. However, then-CEO Bob Swan believed that generative AI would not emerge in the consumer and enterprise markets anytime soon and would be unlikely to generate profits. As a result, Intel declined the investment, and today, OpenAI's market valuation is estimated at $80 billion.

This marks yet another strategic miscalculation by Intel. In the 1990s and 2000s, Intel dominated the semiconductor chip market. However, their decision to stick with DUV lithography technology while TSMC and Samsung Foundry shifted to EUV caused Intel to lose its competitive edge. Now, once again, they have missed a major opportunity, ceding ground to Nvidia, Google, and Microsoft in the AI era.

Vietnam in the New Wave and Promising Partnerships

In recent years, Vietnam has solidified its position in the global semiconductor market, playing  a crucial role in the global semiconductor manufacturing supply chain. Vietnam became the third-largest semiconductor partner of the United States in Asia and accounted for over 10% of U.S. chip imports for seven consecutive months. Between 2016 and 2021, Vietnam's semiconductor market grew by 7.1%, reaching a valuation of $18.2 billion in 2022. The country is home to approximately 40 to 50 companies in the chip design sector, supported by over 5,000 design engineers, positioning itself for future industry expansion.

Vietnam has surpassed the global average in the Government Artificial Intelligence (AI) Readiness Index for three consecutive years. The country currently ranks 5th out of 10 in the ASEAN region and has moved up three places to rank 59th out of 193 countries, according to the assessment by Oxford Insights.

Vietnam has also successfully attracted major electronics companies to invest in AI chip packaging and substrates, such as Intel ($1.5 billion), Samsung (nearly $2 billion), Amkor ($1.6 billion), and Hana Micron ($1 billion). These companies will not only enhance the quality of the workforce in AI chip production in Vietnam, but also contribute to the development of the AI chip supply chain.

Recently, NVIDIA partnered with FPT, a leading Vietnamese technology group and one of Asia's Top 50 IT service companies, to invest up to $200 million in an AI Chip Factory. This facility aims to boost the economy and advance Vietnam's semiconductor and AI chip industries. At the signing ceremony, Keith Strier, Vice President of NVIDIA's Global AI Initiative, highlighted their commitment to collaborate with Vietnamese businesses to accelerate digital transformation and establish Vietnam as a powerhouse in AI chip development.

From a business perspective, this partnership represents a successful investment attraction from a major foreign name for FPT, showcasing the company's credibility in the eyes of its partners. On a larger scale, this deal, along with other international investments, demonstrates the potential and capabilities of Vietnamese companies as well as the Vietnamese government. It underscores that Vietnam has established strategic directions and sound policies to embrace and adapt to the new trends of the era, including the decision to "decline" investments from Intel.

Opportunities and Challenges for Investor

Vietnam has a multitude of factors that can positively influence foreign investment, instilling a significant level of confidence for companies looking to establish operations in the country.

In terms of policy: The government has identified opportunities and is committed to enacting supportive measures, while various provinces are working to improve their infrastructure. Leaders are actively working to attract Vietnam's semiconductor companies and factories, as evidenced by Resolution No. 136/2024/QH15 from the National Assembly, which outlines specific initiatives for Da Nang:

Regarding High-Tech Workforce Development: Vietnam aims to develop 50,000 semiconductor specialists by 2030, a strategic move that will greatly benefit high-tech firms like Intel. Nonetheless, this target may fall short, as certain industries could demand an even larger talent pool than originally anticipated.

Open Market and Strong Diplomatic Strategy: Vietnam boasts an open market and an effective diplomatic approach, collaborating with nations on the United Nations Security Council and leading semiconductor countries. Its geographic proximity to Japan, Taiwan, and China is advantageous for participation in the global supply chain, which greatly benefits Vietnam's semiconductor industry. Vietnam has entered into free trade agreements with Japan (VJEPA) and South Korea (VKFTA), enhancing technological collaboration within Vietnam's semiconductor sector. Furthermore, companies such as Samsung and Intel have made significant investments in the country, reinforcing Vietnam's semiconductor standing in the global market.

Additionally, the Vietnamese semiconductor market will face numerous new challenges, with competition being the most significant. Although various factors continue to present opportunities for Vietnam's semiconductor sector, becoming a leading global hub in semiconductor technology requires patience and long-term strategies. Furthermore, the government must intensify efforts to refine policies that support foreign investment, enhance the quality of the workforce, and comprehensively enhance infrastructure to  create the optimum conditions for rapid growth.

Conclusion

In summary, it can be affirmed that Vietnam has taken the right steps in its development within the semiconductor technology market. While initial challenges emerged, they have showcased Vietnam's adaptability and ability to navigate industry trends, paving the way for a promising entry into this new wave of opportunities. Objectively speaking, this is indeed a dynamic and promising environment for the future. Data and market trends clearly indicate that Vietnam’s semiconductor chip has the potential to become one of the leading semiconductor technology hubs in the world.

Education has always been a top priority for Vietnam’s leadership. Not only does it play a critical role in the nation’s long-term development, but it also significantly contributes to the economy, particularly in attracting foreign direct investment (FDI). Many investors from around the world have recognized the potential of this sector in Vietnam and are showing increasing interest in the market. To tap into this key market through establishing branch campuses, it is essential to have a comprehensive understanding of the landscape, especially considering Vietnam’s unique ideological context and its stringent regulations on investing in education. This article aims to provide a thorough and in-depth perspective on the subject.

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Overview of the Higher Education Market in Vietnam

Higher education has always been crucial to Vietnam's development, significantly impacting socio-economic issues like economic growth and poverty reduction. Consequently, Vietnamese leaders prioritize its growth. However, the World Bank highlights financial resource shortages that hinder the higher education system's development. In response, the government has introduced legal frameworks through the Ministry of Education and Training to attract domestic and foreign private investment, leading to positive progress.

In fact, FDI interest in Vietnam's higher education sector started to gain traction in 2019. According to statistics reported by the news portal CafeF, FDI into education between August 2019 and October 2019 reached US$97 million.

As of December 31, 2021, Vietnam had 408 joint training programs with foreign higher education institutions. Of these, 186 programs were partnerships between private universities and international partners, while 222 programs were licensed by the Ministry of Education and Training.

According to the Ministry of Education & Training, by June 2024, the total foreign investment in this sector amounted to US$4.57 billion across 605 projects, with around 430 joint training programs being implemented at 65 domestic higher education institutions. Additionally, five foreign-invested universities are currently operating in Vietnam. Notable names in this field include RMIT University Vietnam, the British University Vietnam (BUV), the American University in Vietnam (AUV), Swinburne Vietnam, and Greenwich Vietnam.

Despite progress, Professor Raymond Gordon, Vice-Chancellor of the British University Vietnam (BUV), noted that Vietnam is a "hidden gem" for educational investment in Asia. While other countries face intense competition in higher education, Vietnam, despite having prestigious institutions, still sees limited foreign investment. This indicates that the market's potential remains underdeveloped.

Legal Regulations on Establishing University Branch Campuses

The government is currently accelerating the process of refining policies and legal regulations related to investment in higher education. On October 5, 2024, the government issued Decree No. 124/2024/NĐ-CP, amending and supplementing several provisions of Decree 86/2018/NĐ-CP, which governs foreign cooperation and investment in the education sector. This decree, effective from November 20, 2024, notably introduces amendments and supplements to current regulations to establish branch campuses in Vietnam.

Firstly, there are two forms of foreign branch campuses in Vietnam:

With regards to eligible educational fields, foreign investors are only permitted to cooperate and invest in fields authorized by Vietnamese law, and are prohibited from investing in sectors related to security, defense, politics, and religion.

Secondly, several additional points regarding investment conditions have been outlined. According to Articles 33, 35, 36, 37, and 38 of Decree 86, supplemented by Decree 124, specific conditions for establishing university campus branches have been detailed:

Conditions for Investment Licensing:

Conditions for Investment Capital:

Finally, the procedures for establishing branch campuses have been revised to better support investors: 

(1) Apply for an Investment Registration Certificate from the competent authority (Article 34 of Decree 86/2018/NĐ-CP, as amended by Decree 124); 

For projects establishing campus branches of foreign higher education institutions in Vietnam, the Ministry of Planning and Investment consults with the Ministry of Education and Training and relevant agencies before submitting the proposal to the Prime Minister for approval; 

For campus branches of foreign-invested higher education institutions, the investment authority must seek evaluation from the Ministry of Education and Training.

(2) Obtain the permission of establishment (Articles 40 of Decree 86/2018/NĐ-CP,  amended by Decree 124 and Articles 44 of Decree 86/2018/NĐ-CP ): The Prime Minister has the authority to approve the establishment of campus branches of foreign higher education institutions in Vietnam, while the Minister of Education and Training is responsible for approving the establishment of campus branches of foreign-invested higher education institutions.

(3) Obtain the permission for educational activities (Article 47 of Decree 86/2018/NĐ-CP, as amended by Decree 124, on the issuance of permits for educational activities): The Minister of Education and Training grants permission for educational activities to higher education institutions, branches of foreign-invested higher education institutions, and branches of foreign higher education institutions in Vietnam.

Reassessing the Issue

Although the higher education market in Vietnam currently faces several limitations in its development, significant progress is anticipated in the near future due to the proactive efforts of the Vietnamese government in enhancing and refining legal regulations. This has created substantial opportunities for Foreign Direct Investors to penetrate this promising sector. However, to ensure optimal investment effectiveness and facilitate access, thorough preparation is essential, with the search for reliable consulting partners being a critical factor. Viettonkin is one of such organizations that can assist investors in completing procedural requirements, advising on the latest trends, and providing market updates. Let us help you make more informed and effective decisions.

The water pump market plays a significant role in Vietnam's current economy, particularly the industrial water pump segment. It supports the country’s urbanization and industrialization efforts, driving progress toward greater global economic integration. However, the current state of the market reveals that it remains insufficiently funded and holds substantial untapped potential. Therefore, we will conduct a more in-depth analysis of the industrial water pump market in Vietnam to provide a more comprehensive perspective on this promising sector.

Overview of the Current Global Water Pump Markets

The water pump market is vital to industries such as water management, chemicals, oil and gas, and power generation, especially in developing countries. In 2023, the global water pump market was valued at approximately USD 67.76 billion.

According to Future Marketing Insight Inc., the global industrial pump market is projected to reach USD 68.0 billion by 2024 and grow to USD 113.5 billion by 2034, with a CAGR of 5.3% during the forecast period. Centrifugal pump sales are expected to increase at a CAGR of 2% through 2034, resulting in an absolute dollar opportunity of USD 53.8 billion from 2024 to 2034. Prominent companies in the global market include KSB SE & Co. KGaA, Xylem Inc., Sulzer Ltd, Torishima Pump Mfg. Co., Danfoss A/S, and ITT Inc., among others.

The Water Pump Market in Vietnam and Leading Companies in the Field

In Vietnam, the water pump market has garnered increasing attention in recent years, especially after the COVID-19 pandemic. Quang Phuoc PE, the official distributor of Ebara-standard pumps, reports that 2019 experienced significant growth, driven by a construction boom, with an average annual growth rate of 9.3%. By the end of 2019, the value of the standard industrial water pump market was approximately USD 144 million.

Looking ahead, the Vietnamese water pump market is projected to grow at a CAGR of approximately 8.3% from 2024 to 2030. This growth is driven by urbanization, industrialization, and expansion of infrastructure. The increasing population and development of the industrial sector have significantly boosted the demand for water pumps. In particular, Vietnam's large-scale agricultural sector heavily relies on water pumps for irrigation purposes.

As a result, the water pump market in Vietnam is highly diversified, covering various segments such as:

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Photo: Grundfos

In 2023, Grundfos Vietnam developed a new series of end-suction pumps designed to support the growth of smart and sustainable cities. The NK and NKE ranges feature advancements in energy efficiency, connectivity, and durability. More recently, on June 26, 2024, EBARA VIETNAM CO., LTD. hosted a seminar at its Hai Duong plant to showcase large-flow pumps intended for future flood drainage applications, emphasizing Vietnam's ability to manufacture pumps with capacities exceeding 10 m³/s.

Ebara Vietnam is a prominent player in Japan's industrial equipment sector. It entered the Vietnamese market in 1961 as a joint venture with Hai Duong Pump Company. In 2011, it became a wholly owned subsidiary of Ebara Corporation and was subsequently renamed as EVPC. Ebara has contributed significantly to infrastructure development for over 20 years in Vietnam. Similarly, on May 31, 2019, South Korea's DOOCH Group, a global pump market leader, officially established its presence in the Vietnamese market.

 The Future Trends of the Water Pump Market

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Solar-powered water pumps are one of the emerging trends in the water pump sector.

As previously noted, the growth rate of the water pump market in Vietnam is highly promising, establishing a foundation for substantial expansion in this sector in the coming years, particularly within industrial pump segments, including centrifugal pumps. Various indicators suggest that this trend extends beyond Vietnam with significant global interest in this segment as well.

Additionally, global oil refining capacity reached 101,902 barrels per day in 2022, reflecting a 0.5% increase from the previous year, further amplifying the demand for centrifugal pumps. Over 416 refineries are expected to commence operations between 2021 and 2025, including approximately 93 new projects, all of which play a crucial role in the development of this market.

In Vietnam, the chemical industry accounts for 10-11% to the industrial sector's GDP and is expected to maintain this growth rate until 2030, representing 4-5% of the industrial economy. This growth presents a favourable outlook for the industrial water pump market, driving a rise in demand, especially for centrifugal ones.

The positive displacement pump market is experiencing promising growth alongside the centrifugal pump market. According to Mordor Intelligence, the global market is expected to achieve a CAGR of over 4.8% between 2022 and 2027, primarily driven by advancements in water and wastewater treatment technologies. A 2020 report by the United Nations University highlighted that high-income countries treated 74% of their industrial and municipal wastewater, compared to 43% for upper-middle-income and 26% for lower-middle-income countries.

Currently, the industrial water pump market is being influenced by several emerging trends, including:

Driving Forces for Investors

Vietnam’s water pump market has established a stable foundation for development. Additionally, with policy adjustments aligned with the country's development roadmap, key drivers set to accelerate the expansion of this market.

Industrial Growth: According to the General Statistics Office (GSO), industrial output increased by an estimated 8.34% during the first nine months of 2024. The processing and manufacturing sector, in particular, recorded a 9.76% increase, boosting overall economic development. This upward trend is expected to drive demand for water pumps across various industries, creating opportunities for investors in Vietnam.

Agricultural Sector: Agriculture remains vital to Vietnam’s economy. Although the sector did not meet its $54 billion export goal, it recorded a surplus of $12.07 billion in 2023, highlighting strong demand for agricultural water pumps for irrigation and drainage.

Urbanization and Infrastructure: Vietnam's urbanization is on the rise, with projections indicating that over half the population will reside in urban areas by 2040. This growth necessitates improvements in water supply and wastewater systems, positioning eater pumps as a critical component in meeting these demands.

Government Policies: The Vietnamese government has prioritized infrastructure development, focusing on hydroelectric and thermal power projects. With an estimated $30 billion required for water supply upgrades, the government is actively seeking private investment to modernize infrastructure, further increasing the market’s demand for water pumps.

Challenges for Investors

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Hoa Binh Dam is one of the largest hydroelectric damns in Southeast Asia.

Despite the strong drivers pushing the growth of the water pump market, investors face significant challenges. One of the primary obstacles is the high cost of energy. Currently, there is a strong preference for energy-efficient pumps, which necessitates a technological shift to meet market demands. However, the high initial costs associated with adopting these new technologies could potentially hinder the pace of this transition.

Another challenge is the level of competition. The water pump market in Vietnam has witnessed the entry of numerous well-established brands, both domestic and international companies. This has resulted in intense competition, with these brands offering a wide range of pumps catering to various market segments. As a result, investors must adopt effective market entry strategies and conduct thorough competitor analysis to succeed in this competitive landscape.

Finally, although the government has implemented policies to modernize water supply and drainage systems and to build hydropower projects, these initiatives are still in the early stages. Consequently, the demand for water pumps, particularly industrial pumps, has not yet experienced a significant surge. Moreover, the Vietnamese government has not implemented specific policies targeting the water pump market in terms of investment. Investors must thoroughly examine investment policies and regulations under the Investment Law, understand the available incentives, ensure compliance with state regulations to avoid any potential violations.

Conclusion

Overall, the water pump market continues to play a crucial role in Vietnam's economic development. As the country continues to develop, there is sustained demand for water pumps to support both industrial and agricultural production. The Vietnamese government also acknowledges the potential of the water pump market, not only for domestic economic growth but also for attracting international investors. Efforts are underway to offer tax incentives and improve infrastructure to transform this hidden opportunity into a prime investment prospect. For investors, the market present expanding opportunities. The question of who will seize the opportunity, capitalize on this growth and establish a strong foothold in Vietnam's water pump market remains unanswered.

On September 21, 2024, Vietnam’s Prime Minister signed Decision No. 1018, setting forth an ambitious strategy to develop the country’s semiconductor industry. This plan aims to position Vietnam as a significant player in the global semiconductor supply chain by 2030, with aspirations of becoming a world leader by 2050.

At the heart of this initiative lies a unique formula:

C = SET + 1

This formula encapsulates Vietnam’s comprehensive approach to achieving sustainable growth in the semiconductor sector.

Developing the Semiconductor Industry according to a 3-Phase Roadmap

semi

The strategy outlines a phased roadmap, each stage building upon the previous to ensure steady progress.

Phase 1 (2024–2030): Establishing the Foundation

In the first phase, Vietnam aims to capitalize on its geopolitical advantages and human resources. The country will selectively attract foreign direct investment (FDI) to form basic capabilities across the semiconductor supply chain, including research, design, production, packaging, and testing.

Key objectives include:

By 2030, the revenue from Vietnam’s semiconductor industry is projected to exceed $25 billion annually, with added value reaching 10–15%. The electronics industry is expected to achieve revenue of over $225 billion annually. Human resources will also expand to over 50,000 skilled engineers and specialists.

Phase 2 (2030–2040): A Global Semiconductor Hub

The second phase focuses on elevating Vietnam to become one of the global centers of semiconductor and electronics manufacturing. This includes fostering self-reliance while maintaining partnerships with foreign investors.

The objectives for this phase are:

By 2040, annual semiconductor revenue is forecast to exceed $50 billion, and the workforce is expected to surpass 100,000 qualified engineers.

Phase 3 (2040–2050): A Global Leader

By 2050, Vietnam aspires to become a world-leading country in the semiconductor and electronics industries, with mastery in research and development.

The goals for this phase include:

Revenue from the semiconductor industry is anticipated to exceed $100 billion annually, with added value reaching 20–25%. The workforce will continue to grow, ensuring Vietnam’s ability to lead in specific production chain segments.

Five Tasks for Developing the Semiconductor Industry

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Decision No. 1018 outlines five key tasks aimed at advancing Vietnam’s semiconductor industry. These tasks provide a comprehensive framework to build a robust, competitive, and sustainable sector.

1. Developing Specialized Chips

The strategy emphasizes research and development of core technologies to create next-generation specialized chip products, such as AI chips and IoT chips. This will be achieved through investments in core semiconductor technology research centers. These centers will focus on areas of significant technological breakthroughs, ensuring Vietnam remains at the forefront of global semiconductor advancements.

Efforts will also include the development of a domestic semiconductor industry ecosystem. This involves creating strong connections between Vietnam’s ecosystem and those of its strategic partners in the global semiconductor supply chain. Additionally, preferential mechanisms, investment support, and special state financing will be allocated to build a high-tech, small-scale semiconductor chip manufacturing factory. This facility will cater to research, design, and production needs, further boosting Vietnam’s chip development capabilities.

2. Developing the Electronics Industry

Vietnam will allocate resources for research and development of electronic equipment, focusing on new-generation devices that integrate specialized chips and AI technologies. A prioritizing policy will direct the use of state budgets to purchase domestic electronic equipment, thereby promoting the growth of Vietnam's electronics market.

The government will support and encourage large domestic corporations and enterprises to produce next-generation electronic equipment. The goal is to transform these entities into multinational enterprises capable of enhancing global competitiveness. Moreover, Vietnam will develop a supportive ecosystem for industries by promoting technology transfer and fostering joint ventures and partnerships with foreign enterprises. These collaborations will serve the production of new-generation civil and specialized electronic equipment.

3. Human Resource Development

Human resource development is a cornerstone of Vietnam’s semiconductor strategy. The government will focus on retraining, advanced training, and transitional training programs for existing human resources, particularly engineers in electronics, telecommunications, IT, and digital technology. The abundant pool of STEM-capable professionals in Vietnam will be leveraged through long-term, market-driven planning.

Financial support will be provided for training activities, curriculum development, and university-level research programs. Investments will also be made in modern equipment for training facilities and research institutes, as well as the establishment of data centers and supercomputer systems to support these initiatives.

Additionally, the government will implement breakthrough policies to attract and nurture world-class talent and experts in semiconductors and electronics, both domestically and internationally. Collaborative agreements will be pursued with countries facing human resource shortages in the semiconductor field, and commitments will be signed between training institutions and domestic and foreign enterprises to address workforce needs effectively.

4. Attracting Investment in the Semiconductor Sector

Vietnam will build the most attractive incentive mechanisms to selectively attract foreign investment projects with high technology content in the semiconductor and electronics industries. This includes support from central and local budgets and the establishment of an Investment Support Fund to minimize the impact of global minimum income tax regulations.

Priority will be given to foreign enterprises engaged in research and development activities in Vietnam, those utilizing Vietnamese supporting industries, and those entering joint ventures or partnerships with domestic companies. To facilitate operations, Vietnam will implement a green lane mechanism and other streamlined processes for enterprises importing and exporting semiconductor-related goods, raw materials, supplies, and components.

Infrastructure development will also play a critical role. Investments will be made in digital infrastructure, electricity, and water supply systems to meet the demands of semiconductor and electronics manufacturing plants in designated areas. Electricity and water price support mechanisms will be introduced to ensure operational efficiency for these facilities.

5. Enhancing the Ecosystem

The development of a comprehensive domestic ecosystem is essential for the semiconductor industry's growth. This includes improving connectivity between Vietnam’s ecosystem and those of global strategic partners. Policies and initiatives will be implemented to ensure the ecosystem supports the entire production chain, from resource exploitation to product delivery.

Vietnam will also establish mechanisms to ensure sustainability in the semiconductor industry. This includes the development of regulations for the treatment, reuse, and disposal of toxic waste generated during semiconductor and electronics production. Measures will be taken to enhance environmental treatment capacity, ensuring resource exploitation is balanced with environmental safety and sustainability.

Organizational Support and Environmental Sustainability

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Photo: Vietnam Law & Legal Forum

To oversee this ambitious strategy, a National Steering Committee for Semiconductor Development, chaired by the Prime Minister, will be established. This committee will provide top-level guidance and coordination for all initiatives.

An Expert Advisory Group will also be formed, comprising independent professionals with deep expertise in semiconductors and electronics. This group will serve as a strategic advisory body, providing in-depth analyses and recommendations to support the Steering Committee and the Prime Minister in guiding the industry’s development.

Environmental sustainability is a priority within the strategy. Vietnam will implement strict regulations for managing toxic waste generated during semiconductor production, focusing on treatment, reuse, and disposal processes. Investments will also be made to improve environmental treatment capacity, ensuring the semiconductor industry grows sustainably while minimizing its ecological impact.

Conclusion

Vietnam’s strategy for semiconductor development marks a transformative chapter in the country’s industrial growth. With its phased approach, focus on talent development, and commitment to sustainability, Vietnam is positioning itself as a crucial player in the global semiconductor landscape.

This ambitious plan not only promises economic growth but also reinforces Vietnam’s reputation as a reliable and innovative partner in the international technology arena.

Introduction

The preschool education market in Vietnam has been experiencing robust growth in recent years. With the trend of international integration and a rising demand for quality education, more foreign investors are setting their sights on this sector. Notably, Southern Vietnam, characterized by its dense population and developed economy, has emerged as an attractive destination for Foreign Direct Investment (FDI) in preschool education. This article provides an overview of the market, current challenges, and opportunities for collaboration with Smiling Star School—a committed institution dedicated to delivering a high-quality educational environment for children.

An Overview of Vietnam's Preschool Education Market

Screenshot
Photo: Educaid.be

Vietnam's preschool education market has achieved significant milestones in recent years. According to the Ministry of Education and Training, the country had approximately 15,256 preschool institutions by the end of the 2023-2024 academic year, with private schools accounting for 21% of the total. In particular, the Southern region has experienced a significant increase in the number of private preschools, addressing the growing demand for quality education from young families and the expatriate community. This development stems not only from domestic needs but also from rising FDI.

According to the Ministry of Planning and Investment, total FDI in Vietnam reached $15.19 billion in total FDI during the first half of 2024, showing a 13.1% increase compared to the same period last year. A significant portion of this investment was allocated to educational projects, particularly preschool education. International investors from Japan, Singapore, and South Korea are actively expanding their presence in major cities such as Ho Chi Minh City and Binh Duong, aiming to tap into this promising market.

Legal Framework for Foreign Investment in Vietnam's Education Sector

The recent updates to foreign investment regulations in Vietnam's education sector are outlined in Decree 124/2024/ND-CP, which revises and expands upon Decree 86/2018/ND-CP. A key provision requires that investors maintain at least 70% of their capital investment, even when utilizing rented facilities, along with a commitment to provide adequate investment over a five-year span (Article 35.6).

The decree specifies facility requirements, stating that lighting, furnishings, and educational resources must be appropriate for the curriculum. Additionally, ancillary spaces, such as health rooms and kitchens, must comply with safety standards (Article 36.2). Foreign educational programs are required to obtain quality accreditation in their home country and must align with Vietnam's educational goals, especially when catering to Vietnamese students (Article 37.1).

Administrative processes have been simplified through inter-agency data sharing, reducing costs, and saving time for investors. Nevertheless, stringent standards for quality accreditation remain in place to uphold transparency and maintain educational excellence.

Smiling Star: A Model for Smart Investment in a Changing Era

Legal issues continue to pose significant barriers for foreign investors entering the Vietnamese market. However, investors, such as Smiling Star Preschool, demonstrate resilience and acumen are determined to invest in Vietnam and spearhead a new wave of educational investment.

The Smiling Star Preschool curriculum originates from the Lion City of Singapore. Its educational programs are crafted to align with Singapore's Nurturing Early Learners (NEL) Framework with standards set by the Ministry of Education (MOE). This underscores Smiling Star’s capability as an investor in Vietnam’s education sector.

Smiling Star aims to establish itself as a leading brand in the region’s education sector. Its commitment to continuous learning and improvement to foster not only intellectual development in children but also their moral and life skills. The organization has demonstrated sharp market research capabilities and a keen awareness of trends. With a focus on establishing a presence in Vietnam, Smiling Star is eager to collaborate with local stakeholders to lay the groundwork for its international preschool system as the Vietnamese government gradually implements supportive policies for investors.

This illustrates that Vietnam remains an attractive market for prominent international education brands. Investors like Smiling Star recognize this potential and are strategically refining their plans to invest directly in Vietnam. Furthermore, Smiling Star and other prospective investors are paving the way for new FDI opportunities in the preschool education sector.

Conclusion

The preschool education market in Vietnam is on an upward trajectory, attracting increasing interest from foreign investors. This presents a promising opportunity for those looking to engage in the education sector in Vietnam, particularly as the demand for high-quality education continues to rise. Despite existing challenges, collaborations between international investors and educational organizations like Smiling Star can bring positive contributions to Vietnam's preschool education landscape. With strategic investments and partnerships, Vietnam's preschool education can not only meet domestic needs but also progress toward international standards.

Foreign Direct Investment (FDI) has consistently played a pivotal role in Vietnam’s economic growth. As one of the most dynamic economies in Southeast Asia, the country has successfully transformed from an economically isolated state to a thriving hub for global investors. This transformation can be attributed to strategic government policies, improving diplomatic relations, and the steady rise in FDI inflows. This article offers a detailed overview of Vietnam’s FDI journey, highlighting key milestones and future prospects.

Early Stages: From Economic Struggles to Initial Investments

In the 1980s, Vietnam was one of the world's least developed nations, grappling with economic challenges exacerbated by adherence to a centralized economic model influenced by the Soviet Union, alongside sanctions from the United States and its allies. By 1986, the implementation of the Đổi Mới (Renovation) reforms marked a turning point, shifting towards a market-oriented economy. The introduction of the 1987 Foreign Investment Law, which allowed 100% foreign ownership in certain sectors, spurred an influx of foreign capital.

Between 1988 and 1990, Vietnam attracted $1.6 billion in foreign investment, which surged to $17 billion between 1991 and 1995. A major milestone occurred in 1996 when Vietnam secured $10 billion in FDI—nearly 58% of the total FDI for the previous five years. The economy's growth, driven by these investments, averaged 8.2% annually during this period, signaling the beginning of Vietnam’s FDI success.

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Figure 1 Chart of FDI Capital Growth in Vietnam from 1988 to 2005 (Unit: Billion USD)

The FDI Boom: Accelerating Growth and Strategic Investments

The period between 2005 and 2008 saw Vietnam emerge as a leading FDI destination, despite a global financial crisis. The country’s entry into the World Trade Organization (WTO) in 2007 acted as a catalyst for increased foreign investments. FDI inflows exceeded $10 billion in 2006, primarily from American and South Korean investors, reaching $12 billion. By 2008, Vietnam attracted 1,171 projects, with a total registered capital of $71.7 billion—on par with cumulative FDI from 1988 to 2007.

India also ramped up its investments in 2007, launching large-scale projects such as the $527 million hot-rolled steel plant by the ESSAR Group and the Tata Group’s Hà Tĩnh steel complex, making India one of Vietnam’s top FDI sources. Notably, Samsung entered the Vietnamese market in 2008, establishing a mobile phone manufacturing plant in Bac Ninh, further bolstering Vietnam’s position as a prime destination for FDI.

Establishing Vietnam's Role in the Regional FDI Landscape

From 2015 to 2019, Vietnam’s diplomatic and economic standing soared, cementing its reputation as one of Southeast Asia’s top destinations for FDI. In 2015, registered FDI capital reached $22.76 billion, a 12.5% increase from the previous year, with realized FDI capital hitting $14.5 billion. Key investments during this period included:

By 2019, disbursed FDI had reached a record $20.38 billion, marking a 6.7% increase from 2018. FDI's contribution to GDP growth steadily increased, rising from 15.04% between 1986 and 1996 to approximately 18% from 2010 to 2019.

Screenshot

FDI Attraction in Vietnam over the years (Billion USD)

(Source: Ministry of Planning and Investment)

A Fourth Wave of Optimism for FDI

Following the third investment boom, optimism is high for a potential fourth wave of FDI in Vietnam. Since 2020, FDI inflows have declined compared to the impressive figures of 2015-2019, influenced by the COVID-19 pandemic and global political tensions. Nevertheless, the achieved numbers remain noteworthy.

In 2021, newly registered capital reached $14.1 billion, a 3.76% increase from the previous year, with 34,424 active FDI projects totaling $405.9 billion. By November 2022, total FDI inflows hit $25.14 billion, a 5% decrease from 2021, but the number of new projects rose by 14.9% to 1,812, despite an 18% decline in registered capital to $11.52 billion.

The 2023 FDI report shows a significant increase in registered FDI to $36.61 billion, up 32.1% from 2022, while global FDI growth only reached 3%. However, disbursed capital increased modestly by 3.5%, totaling $23.18 billion. This trend indicates that Vietnam remains a strong contender for future foreign investments.

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Figure 3 Foreign Direct Investment for the years 2020 - 2023 (Unit: Billion USD)

Resilience Amid Challenges: The Pandemic and a Shift in Focus

Though FDI inflows experienced a decline in 2020 due to the COVID-19 pandemic and global political tensions, Vietnam’s economic appeal remains strong. In 2021, newly registered capital reached $14.1 billion, reflecting a 3.76% increase from 2020, despite global uncertainty. By November 2022, FDI projects totaled 34,424, with a combined value of $405.9 billion.

The 2023 FDI report showed a strong recovery, with registered FDI reaching $36.61 billion—up 32.1% from 2022. The increase in registered capital and a modest rise in disbursed capital signal ongoing investor confidence in the Vietnamese market.

At a September 2024 press conference, the Vietnamese government reported a 6.8% increase in total social investment for the first nine months of the year. The total FDI reached $24.78 billion, an 11.6% increase from the previous year. As of September 2024, Vietnam is home to 41,314 FDI projects with a total registered capital of $491.7 billion. Singapore remains the largest investor, accounting for 18.6% of total FDI.

Looking Ahead: The Future of FDI in Vietnam

Despite the challenges posed by the global pandemic, Vietnam’s FDI future remains promising. As manufacturing shifts away from China, Vietnam is expected to attract more foreign investments, particularly in high-tech industries and renewable energy. The Vietnamese government is focusing on strengthening strategic partnerships, especially with the United States and Japan, as it looks to position itself as a leader in these emerging sectors.

Government Policies: Enhancing the FDI Environment and the Future Investment 

Vietnam National Assembly comp

Landscape of the Vietnamese Market

To foster FDI growth, the Vietnamese government has implemented a series of progressive policies. Notably, Resolution No. 50-NQ/TW (2019) outlines strategies to enhance Vietnam’s investment environment by 2030. It emphasizes tax exemptions, administrative simplifications, and targeted investments in research and environmental protection. These reforms have made Vietnam increasingly attractive to foreign investors, especially in emerging sectors. A measured entry and long-term vision are essential. It’s crucial to have a comprehensive view of the market and seek insights from experts regarding the trends and developments in Vietnam’s FDI landscape. This deeper understanding will help shape strategies for successful foreign direct investment and the way forward.

The 2020 Investment Law continues to offer tax exemptions and incentives for projects in disadvantaged areas, reinforcing Vietnam's commitment to creating a business-friendly climate. This environment, coupled with growing government support, is expected to further boost foreign interest in the Vietnamese market.

You Might Also Like: FDI in Vietnam: Policies & Prospects

Conclusion: Vietnam’s FDI Journey – A Global Success Story

Vietnam’s FDI journey, from economic isolation to becoming one of Southeast Asia's most attractive investment destinations, is a testament to the country’s resilience and strategic vision. With continued government support, a stable economic environment, and growing global confidence, Vietnam is poised for sustained FDI growth in the coming years. As the country diversifies its FDI sources and expands into new sectors like high technology and renewable energy, it will continue to be an appealing prospect for international investors seeking opportunities in the region.

Unlock Vietnam's Market: Download Our Comprehensive FDI eBook Now!

Vietnam is emerging as a prime destination for foreign direct investment (FDI), driven by rapid economic growth, favorable government policies, and an investor-friendly business environment. This eBook provides a deep dive into Vietnam’s economic landscape, highlighting key industries such as manufacturing, real estate, and digital banking that attract FDI. It also explores the government’s proactive measures to streamline investment procedures, improve infrastructure, and offer tax incentives for foreign enterprises. Additionally, it covers crucial insights into market entry strategies, regulatory requirements, and socio-cultural factors that influence business success in Vietnam.


Download the eBook now to gain expert insights into successfully navigating Vietnam’s dynamic investment landscape!

Download EBOOK
Unlock Vietnam's Market: Download Our Comprehensive FDI eBook Now!

Vietnam is emerging as a prime destination for foreign direct investment (FDI), driven by rapid economic growth, favorable government policies, and an investor-friendly business environment. This eBook provides a deep dive into Vietnam’s economic landscape, highlighting key industries such as manufacturing, real estate, and digital banking that attract FDI. It also explores the government’s proactive measures to streamline investment procedures, improve infrastructure, and offer tax incentives for foreign enterprises. Additionally, it covers crucial insights into market entry strategies, regulatory requirements, and socio-cultural factors that influence business success in Vietnam.


Download the eBook now to gain expert insights into successfully navigating Vietnam’s dynamic investment landscape!

Download E-Book

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