Fresh FDI direction will benefit players in global technology

Vietnam will create an ecosystem to increase the number of Fortune 500 companies, and have at least three leading global tech corporations establish research and development centres by 2030.

- By Nguyen Kim

Party General Secretary and State President To Lam on June 8 signed Resolution No.10-NQ/TW on the development of foreign-invested enterprises, marking a significant shift in Vietnam’s thinking on attracting foreign direct investment (FDI).

The resolution sets a series of specific targets up to 2030. Regarding capital volume, the goal is to pull in registered capital of approximately $40-50 billion per year and disbursed capital of $30-40 billion per year.

It sets a target of 75 per cent of FDI coming from developed economies with strong tech and management capabilities; increasing the number of Fortune 500 companies investing in Vietnam by 30 per cent; and having at least three leading global technology corporations establish research and development centres.

These specific targets are set up in the context more multinational conglomerates expand its operation and their research and development (R&D) facilities in the countries.

At LG’s event in Hanoi on June 17 to celebrate the 10th anniversary of its Vietnamese R&D organisation, LG Electronics reaffirmed it will continue to expand the subsidiary as an overseas innovation hub for LG Vehicle Solutions Company.