Vietnam’s FDI Attraction Policies

LONG

11/02/2025

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Policy

Vietnam is renowned as one of the most dynamic and successful countries in attracting foreign direct investment (FDI) in the region. Vietnam’s FDI attraction policies play a crucial role in attracting capital, technology, and management expertise from foreign investors, contributing to economic growth and national development.

Vietnam's FDI Attraction Policy

Development Stages of Vietnam’s FDI Attraction Policies

Vietnam’s FDI attraction policies have undergone several development stages, reflecting the country’s economic context and development orientation.

1986-1995: Starting with the Law on Foreign Investment in 1987, Vietnam opened its doors to attract FDI with attractive incentives, focusing on heavy industries and mining.
1996-2005: Vietnam continued to improve its legal framework, improve the investment environment, and expand FDI attraction to processing, manufacturing, and service industries.
2006-2015: Joining the WTO marked an important turning point, with Vietnam focusing on improving FDI quality, attracting high-tech, environmentally friendly projects linked to the global value chain.
2016 to present: Vietnam continues to improve its institutions, enhance national competitiveness, and attract sustainable FDI, focusing on innovation, digital transformation, and green economic development.

FDI Investment Incentives

Key Policies and Incentives

Vietnam’s FDI attraction policies are reflected in various legal documents, regulations, and specific incentive programs.

Investment Law: The Law on Investment 2020 is the most important legal document, clearly stipulating the rights and obligations of foreign investors, while offering attractive incentives in terms of taxes, land, and investment procedures.
Tax Incentives: Vietnam applies preferential corporate income tax rates for FDI projects in priority industries, preferential locations, or meeting criteria related to technology and the environment.
Land Incentives: FDI projects enjoy numerous land access incentives, including exemption and reduction of land rent and land use terms.
Investment Procedure Support: Vietnam strives to reform administrative procedures, simplify investment procedures, establish businesses, and grant business licenses to foreign investors.

Impact of FDI on Vietnam’s Economy

FDI has contributed positively to Vietnam’s socio-economic development in recent years.

Promoting Economic Growth: FDI contributes significantly to GDP, creates jobs, and increases income for workers.
Technology Transfer: FDI brings modern technology, advanced management skills, and contributes to enhancing the competitiveness of Vietnamese enterprises.
Human Resource Development: FDI creates job opportunities, vocational training, and improves the professional qualifications of Vietnamese workers.

Challenges and Orientations for FDI Attraction in the Future

Besides the achievements, Vietnam still faces challenges in attracting high-quality FDI.

Improving the Quality of Human Resources: Meeting the increasing demands of the labor market, especially in the context of the Industrial Revolution 4.0.
Improving Infrastructure: Upgrading transportation, logistics, and energy systems to meet the development needs of FDI projects.
Improving the Investment and Business Environment: Continuing administrative procedure reform, enhancing competitiveness, and ensuring transparency in the investment environment.

Conclusion

FDI attraction policies play a crucial role in Vietnam’s economic development strategy. By continuing to improve policies, enhance national competitiveness, and grasp new trends, Vietnam will continue to be an attractive destination for foreign investors, contributing to the country’s rapid and sustainable development.

Frequently Asked Questions

1. Which industries are prioritized for FDI attraction in Vietnam?

Vietnam prioritizes attracting FDI in processing and manufacturing industries; renewable energy; high technology; high-tech agriculture; tourism; and high-quality services.

2. What are the procedures for establishing an FDI enterprise in Vietnam?

Investors can find detailed information and carry out procedures for establishing FDI enterprises online on the National Investment Information Portal or directly contact the Investment Promotion and Support Boards of localities.

3. Which localities in Vietnam attract the most FDI?

The provinces and cities attracting the most FDI in Vietnam include: Ho Chi Minh City, Hanoi, Binh Duong, Dong Nai, and Bac Ninh.

4. How can I find information about FDI projects calling for investment in Vietnam?

You can search for information on FDI projects calling for investment in Vietnam on the websites of the Ministry of Planning and Investment, the Foreign Investment Agency, the Investment Promotion and Support Boards of localities, or participate in investment promotion conferences and forums.

5. What are the support policies for FDI investors after the project goes into operation?

Vietnam has many policies to support FDI investors after the project goes into operation, including support for human resource training, trade connections, and resolving difficulties during operation.