Vietnam seeks to elevate its FDI attraction

Vietnam is moving to the next phase of its foreign investment strategy, with international financial centres and free trade zones expected to serve as new engines for attracting high-value capital in finance and technology.

- By Hara Nguyen

Financial and tech innovations are to be tested in a more controlled environment via new regulations

Capital inflows in Vietnam are projected to reach between $38-40 billion annually over 2026-2030, according to a report released last week by the Vietnam Association of Foreign Invested Enterprises (VAFIE).

The report points to a clear structural shift in foreign funding trends, with investors increasingly gravitating towards high-value, technology-driven sectors. These include advanced manufacturing such as semiconductors, electronics, and medical equipment; renewable energy projects spanning wind, solar, and green hydrogen; and emerging digital infrastructure, including data centres, cloud computing, and AI.

At the same time, Vietnam is expected to continue benefiting from the China+1 strategy, with Chinese investment flows expanding further into Southeast Asia. New financial inflows are also anticipated through the development of international financial centres (IFCs) and free trade zones, both seen as key pillars of the country's next-generation foreign investment framework.

According to Nguyen Anh Tuan, chairman of VAFIE, Vietnam is undergoing a shift in how it attracts foreign backing. “We are moving away from competing on cost, low taxes and cheap labour, towards competing on quality, including a transparent investment environment, modern infrastructure, skilled human capital, and effective institutions,” he said.