Hanoi (VNA) – As localisation in FDI production chains currently stands at just 20-25%, Vietnam is moving to link investment incentives to foreign firms’ commitments to develop domestic suppliers, a shift expected to tighten business linkages, lift added value and sharpen competitiveness.
Technology transfer remains a bottleneck
Foreign-invested firms account for a large share of Vietnam’s exports, yet much of that value rests on imported raw materials and components. Domestic added value is below half, well behind other East and Southeast Asian economies, particularly in manufacturing and electronics. Most Vietnamese companies remain confined to simple processing and low-added-value stages of the value chain.
Technology transfer from FDI enterprises remains limited and has improved only slowly, said Bui Thu Thuy, Deputy Director of the Foreign Investment Agency (FIA) under the Ministry of Finance (MOF).
Citing the Ministry of Science and Technology data, Thuy said only about 600 technology transfer contracts were registered nationwide in 2006-2016, equal to less than 4.3% of FDI projects. Around 400 were recorded in 2018-2022, mostly intra-company transfers between parent companies and their Vietnamese branches, aimed chiefly at supporting the foreign firms’ own production and operations. Transfers centred on technical support (77%), training (71%) and production processes (73%), while those involving intellectual property made up just 13%.
Under the Politburo’s Resolution 10-NQ/TW dated June 8, 2026 on developing the foreign-invested economy, Vietnam is fundamentally overhauling its approach to FDI, shifting from passive attraction to proactively selecting quality, hi-tech investment with spillover impacts on the domestic economy.
The MOF is studying amendments to the Investment Law to codify more generous preferential mechanisms, steering investment attraction toward selectivity rather than courting capital at any cost.
Incentives will increasingly hinge on investors’ performance and commitments, not just on landing projects. Key commitments include transferring technology to Vietnamese firms, training workers, providing technical support and opening FDI supply chains to domestic companies.
Making Vietnam’s manufacturing ecosystem more competitive
Resolution 10-NQ/TW targets about 10,000 domestic firms in the value and supply chains of FDI enterprises by 2030, including 500-1,000 tier-1 suppliers. The 2026-2035 supporting industry development scheme, approved under Decision 929/2026/QD-TTg, makes developing supporting industries along global supply and value chains a priority, with leading enterprises’ technical requirements, quality standards and localisation rates serving as key criteria for support policies.
Many foreign-invested companies want to buy more from Vietnamese enterprises, Thuy said.
Cha Ji Ho, Samsung Vietnam’s Deputy General Director in charge of its procurement centre, said Samsung is shifting from boosting suppliers’ production capacity to building deeper specialised capabilities and a supplier ecosystem in Vietnam. The company plans to widen its support geographically, add participating firms and deepen their capabilities, extending from hubs like Bac Ninh and Ho Chi Minh City to Phu Tho, Hai Phong and Thai Nguyen, while stepping up cooperation with local suppliers.
Samsung proposed systematic cooperation among the Government, the company and Vietnamese enterprises, built on a supplier database and clear support policies and frameworks. The aim is to raise localisation rates, broaden access to supply chains and sharpen domestic manufacturers’ competitiveness.
It also suggested publishing an annual Supplier Development White Paper to establish a mechanism for cooperation and long-term monitoring of supply chain development.
Under this approach, ties between FDI and Vietnamese companies will move beyond simple buyer-supplier relationship toward joint development and sustainable partnerships, and better competitiveness of Vietnam’s manufacturing ecosystem as a whole./.
VNA
See more
Reference exchange rate down 4 VND on October 15
With the current trading band of +/- 5%, the ceiling rate applicable for commercial banks during the day is 26,924 VND/USD, and the floor rate 24,360 VND/USD.
Mobile phone exports rise 20% to 51.8 billion USD in first nine months
China was the largest destination, with exports valued at 11.3 billion USD, followed by the US at 9.48 billion USD and the Republic of Korea at 5.4 billion USD.
Green SM launches all-electric taxi service in US
The move brings Green SM into one of the world’s most dynamic and demanding markets. It also marks another step in the international expansion of the Vietnamese mobility brand, following its rapid growth across markets in Asia and Europe.
Vietnam strengthens financial cooperation at IMF-World Bank annual meetings
The Vietnamese Governor underscored the complementary roles of global and regional financial cooperation mechanisms, including the Chiang Mai Initiative Multilateralisation (CMIM) and the ASEAN+3 Macroeconomic Research Office (AMRO). He also highlighted the importance of technical assistance in fintech, digital transformation, cybersecurity and risk management.
Vietnam-Cambodia trade expo promotes bilateral economic cooperation
The Vietnam-Cambodia Business Networking and Product Promotion Exposition has become a key trade promotion event, creating business and investment opportunities while strengthening mutual understanding and trust between the two countries’ armies, people and enterprises.
Vietnam, US seek to deepen economic ties, promote high-tech investment
Addressing the summit, Permanent Deputy Prime Minister Pham Gia Tuc said economic ties have entered a new era of growth more than three years after the establishment of the Comprehensive Strategic Partnership.
Australia seeks to strengthen agricultural ties with Vietnam
Hamish McIntyre, President of the National Farmers’ Federation (NFF) of Australia, praised the development of Vietnam’s agricultural market, describing the country as an important partner for Australian businesses.
Textile and garment machinery exhibition opens in Ho Chi Minh City
The exhibition features 610 booths from countries and territories including Bangladesh, Bulgaria, China, India, Japan, Singapore, the Republic of Korea, and Thailand.
Vietnam eyes link between green credit and carbon market to unlock funding
The pilot market was launched with more than 511 million metric tonnes of CO₂ in allowances, allocated to facilities in three emissions-intensive sectors for 2025-2026, including thermal power, iron and steel, and cement.
Bac Ninh moves to boost pomelos' entry to more markets
Proper care and technical management have helped orchard growers maintain stable tree growth and consistent fruit quality.
Association strengthens Vietnamese businesses' links to European markets
From fashion and Vietnamese cuisine to renewable energy, Vietnamese entrepreneurs in Belgium, the Netherlands and Luxembourg – Benelux region – share a common goal of bringing more Vietnamese products and brands to European consumers.
Vietnam needs to turn FTSE upgrade into long-term capital inflows: VinaCapital
FTSE Russell’s upgrade of the stock market to secondary emerging status is a milestone that reinforces Vietnam’s standing among international investors.
JICA supports capacity building for more efficient equity market in Vietnam
Launched in 2024, the Technical Cooperation Project for “Capacity Building on Promoting Efficiency of Vietnamese Equity Market” aims to strengthen the capacity of SSC and the stock exchanges through technical consultations and capacity-building activities.
Reference exchange rate increases 13 VND on October 14
With the current trading band of +/- 5%, the ceiling rate applicable for commercial banks during the day is 26,928 VND/USD, and the floor rate 24,364 VND/USD.
Vietnam’s airlines expand international networks
The Civil Aviation Authority of Vietnam forecasts that the country’s aviation market will handle 94 million passengers and more than 1.6 million tonnes of cargo in 2026, up 13% and 9.3%, respectively, from 2025.
Bac Ninh customs facilitates clearance to boost exports
Pham Chi Thanh, head of Customs Sub-Department Region V, said the unit is focusing resources on developing a digital customs model and streamlining professional procedures to shorten clearance times and reduce costs for businesses while maintaining effective state management.
UOB raises Vietnam’s 2026 GDP growth forecast to 9.2%
In its latest macroeconomic report, UOB also raised its 2027 growth forecast to 8.8% from 8.4%.
Ho Chi Minh City honours top 50 brands for 2026
The awards aim to recognise brands that can lead their industries, drive innovation and create a ripple effect across the business community, lifting the city’s standing in a new growth stage.
Ho Chi Minh City's housing market sees price stabilisation, sharper buyer segmentation
According to Avison Young Vietnam, improved planning and infrastructure development have helped ease market uncertainty and prevented a complete freeze. More than 25,000 apartments are expected to enter the market in multiple launches between 2027 and 2030, with many projects scheduled to benefit from infrastructure improvements around 2030.
Vietnam, Georgia look to more business opportunities
For Vietnamese firms, Georgia can serve as a gateway to broader regional markets, given its strategic location connecting the South Caucasus, Central Asia and China with European markets via the Black Sea.