At a seminar on links between local suppliers and innovative global supply chains, hosted by VIR on October 8 in Hanoi, Deputy Minister of Finance Tran Quoc Phuong emphasised the need to change the approach to foreign direct investment (FDI) attraction.
| The capabilities of Vietnamese enterprises remain a decisive condition for entering global supply chains, the seminar heard |
The shift from quantity to quality is also reflected in the way investors assess Vietnam. Cost advantages remain important, but they are no longer sufficient. Vietnam needs to move towards a growth model built on ecosystem strength, in which capital, supply chains, technology, and talent are interconnected, the seminar heard.
According to Phuong, Vietnam’s economy is entering the final stretch of its race to achieve its 2026 targets. In the third quarter and first nine months of the year, Vietnam’s GDP growth was estimated at 9.95 and 9.01 per cent, respectively, the highest levels recorded in many years.
Against this positive backdrop, foreign investment remains a bright spot. Cumulatively, after nearly four decades, total FDI capital attracted by Vietnam has surpassed $570 billion.
However, this has highlighted a gap that needs to be addressed. The sector has contributed investment resources, promoted economic restructuring, expanded export markets, and enabled Vietnam to participate more deeply in global production networks.
Links between the domestic and foreign-invested sectors remain limited; technology transfer and research and development have yet to meet expectations; and the proportion of Vietnamese enterprises participating in global supply chains remains relatively low.
This is also one of the reasons why the Politburo issued Resolution No.10-NQ/TW in June, on the development of the foreign-invested economic sector.
“Vietnam will not attract FDI at any cost. Instead, we will select partners in a way that helps enhance Vietnam’s position in global value chains,” stated Phuong. “More importantly, Vietnam’s objective is not for FDI to replace domestic resources, but to strengthen those resources, improve productivity and technological capabilities, and enhance the competitiveness of the economy.”
To realise this direction, the government on September 22 issued an action plan for implementing Resolution 10. The Ministry of Finance (MoF) is in the process of institutionalising relevant policies, including further improving the institutional framework, enhancing the investment environment, developing flexible incentive mechanisms for core projects, and encouraging links between the domestic and the FDI sectors.
“The combination of legislation on FDI, private sector development, and the state economic sector could create a strong impetus for the economy, providing a foundation for the double-digit growth phase in 2026-2030,” said Phuong.
Ecosystem advantage
Kamijo Hiroki, deputy CEO and head of FDI-TB at VPBank, said at the seminar that the way investors view Vietnam is changing.
“Vietnam continues to have important advantages in terms of its strategic location, international integration, and manufacturing environment. However, while competitive labour costs were previously one of the key reasons investors chose Vietnam, investor requirements are now much broader,” said Hiroki.
“Investors are now asking broader questions. Can Vietnam support sophisticated and resilient supply chains? Can treasury operations be managed with speed and visibility? Is there sufficient talent for advanced industries? And can the ecosystem support expansion over the long term?,” he added.
According to Hiroki, the shift is therefore from a cost-led model to a connected ecosystem model.
“Success will depend not only on attracting investment, but also on helping investors operate efficiently, expand confidently, and build deeper links with Vietnamese enterprises. This is also where the partnership between VPBank and SMBC can play a role,” he said.
VPBank brings a strong digital platform, deep relationships with Vietnamese enterprises, and a broad ecosystem for small- and medium-sized enterprises. SMBC brings global multinational clients, international business relationships, and demand from companies expanding into Vietnam, including through sales expansion. Together, the two sides can connect domestic suppliers with global value chains, while mobilising domestic and cross-border capital to support FDI, infrastructure, and business growth.
VPBank shared several concrete results at the seminar. In funding, SMBC helps connect VPBank to international capital sources, global financial institutions, and development finance partners.
A recent example is a $1.44 billion syndicated loan initiative, which demonstrates the ability of the partnership to mobilise international funding to support Vietnam’s growth. Another is a two-step loan project worth a total of $150 million between VPBank and the Japan Bank for International Cooperation, with SMBC’s support.
In supply chains, SMBC’s global relationships with multinational corporations help identify new business opportunities, while VPBank supports local suppliers, distributors, and ecosystem participants in Vietnam.
Cooperation around De Heus is one example of how global and local networks can be connected to create broader value chain opportunities. In cross-border payments, partnerships such as Taptap Send demonstrate how SMBC’s international connectivity and VPBank’s domestic market reach can work together to better serve customers.
Building capabilities
Drawing on these experiences, Hiroki identified five priorities for ecosystem development. The first is supply chain localisation. Multinational companies want to increase local sourcing, while potential suppliers may need support in capacity, technology, quality systems, financial strength, and governance. Supplier development and anchor-led supply chain finance can help qualified Vietnamese companies participate more confidently in global value chains.
The second priority is cross-border treasury. Multinational companies need effective management of foreign exchange, liquidity, documentation, cash visibility, and cross-border transactions. Digital treasury, automated reconciliation, API connectivity, and stronger cash management solutions can improve control and efficiency.
The third priority is talent development. As investment moves into semiconductors, AI, automation, and advanced manufacturing, university-business collaboration, vocational development, and knowledge transfer must connect education more closely with industry needs.
The fourth priority is the green transition and environmental, social, and governance criteria. International carbon commitments and sustainability requirements create demand for renewable energy, energy efficiency, and green manufacturing technology. Green loans, transition finance, and international funding can support credible pathways.
The fifth priority is mergers and acquisitions. Investors increasingly consider acquisitions, strategic partnerships, project development, and capital market opportunities. These require an integrated combination of funding, structuring, due diligence, regulatory coordination, and advisory support.
“Building an ecosystem for the next phase of FDI growth requires six stakeholder groups: government, Vietnamese enterprises, foreign investors, industry associations, universities, and financial institutions,” stated Hiroki. “Vietnam’s next chapter of growth will be built not on cost advantage alone, but on the strength of its ecosystem. An ecosystem where capital, capability, talent, and partnerships reinforce one another.”
While policy creates the foundation and finance strengthens connectivity, the actual capabilities of Vietnamese enterprises remain a decisive condition for entering global supply chains.
At a broader level, MoF deputy minister Phuong also said Vietnam needs to continue improving power infrastructure, logistics, and suitable personnel more rapidly, alongside further strengthening the institutional framework and investment and business environment. These are important conditions for Vietnam to maintain its position as a preferred investment destination and enhance its competitiveness in the new phase.
Therefore, connecting Vietnamese enterprises with global supply chains is ultimately not the responsibility of foreign-invested enterprises or domestic companies alone. If policy creates a favourable environment, foreign-led enterprises open up new markets and standards, and Vietnamese enterprises strengthen their capabilities to meet those requirements, FDI flows will not only generate additional output or jobs, but can also become a driver of productivity, technological capability, and economic competitiveness.