Vietnam undergoing strategic reset on foreign investment

On June 8, the Politburo issued Resolution No.10-NQ/TW, establishing a new policy framework for developing foreign-invested enterprises (FIEs).

- By Pham Thi Thanh Lan, partner Nguyen Thi Thanh Truc, associate and Than Thi To Nhi junior associate, Indochine Counsel

Resolution 10 represents a fundamental recalibration of Vietnam’s foreign direct investment (FDI) strategy. The focus is shifting away from capital volume and project quantity towards quality, integration, and long-term value creation.

The resolution reaffirms that FIEs remains integral to the national economy, supported on the basis of equality and fair competition. At the same time, FDI must align more closely with national priorities: technological upgrading, domestic linkages, and human capital development.

Although not self-executing, Resolution 10 sets a clear policy direction that will shape future legislation, regulatory practice, and investment governance. Vietnam is moving from a capital-attraction model to the development of a strategic investment ecosystem.

FDI will be evaluated less on scale and more on its contribution to economic restructuring and long-term competitiveness. The resolution emphasises participation in global value chains, industry clusters, and innovation ecosystems, while reducing reliance on geographic competition among localities.

The incentive framework will shift from input-based criteria to performance-based outcomes. Future incentives will be tied to investor commitments in areas such as technology, innovation, workforce training, and domestic integration. Authorities will strengthen post-investment supervision, assessing projects throughout their lifecycle. Incentives may be adjusted if commitments are not fulfilled. These mechanisms aim to enhance policy effectiveness without signalling a restrictive approach.