Vietnam’s investment landscape is undergoing a strategic transformation.
What was once rooted in low labour costs and abundant manpower is giving way to a new competitive advantage: institutional credibility. In the first half of 2025, foreign direct investment (FDI) surged by 32.6 per cent to $21.52 billion, validating this shift.
Key developments supporting this trend include:
- Administrative reform: A ~20 % reduction in central ministries and agencies, consolidating regulatory bodies to enhance transparency and efficiency.
- Digitalisation drive: Full digitisation of public services by end‑2025 and unified standards for licensing and land processes are building a “confidence infrastructure.”
- Institutional enhancements: Clearer legal frameworks, ESG-aligned incentives, and alignment with OECD tax standards (Pillar Two) strengthen Vietnam’s global standing.
- Investor strategy: Successful investors are those who blend market insight with institutional savvy—engaging deeply with evolving regulations and administrative systems.
Prof Dr. David argues this transition positions Vietnam not merely as a low-cost hub but as a trusted destination for sophisticated, long-term capital, reinforcing its bid for sustainable growth and global credibility.
Syndicated / Republished / Cited by other media:
Grateful to see our perspective on Vietnam’s FDI shift cited by more than a dozen international and national publications – including
