To ensure sustainable development, Vietnam will need to strike a delicate balance between attracting foreign investment and fostering domestic capability. Vietnam’s economy expanded at an average annual rate of 6.1% between 2012 and 2022, making it one of the region’s fastest-growing economies, according to the Vietnam News Agency. This robust performance was fueled by a steady inflow of foreign capital. With its strategic location, competitive labor costs, and supportive policies, Vietnam has become a favorite destination for foreign investors. The country’s export-oriented economy has flourished due largely to the contributions of multinational corporations. However, the country faces challenges related to overreliance on foreign capital and limited domestic value addition. By strategically leveraging foreign investment to enhance domestic industries and create high-quality jobs, Vietnam can achieve a more resilient and sustainable economic growth trajectory. The current state of FDI in Vietnam Vietnam has witnessed a strong influx of foreign direct investment (FDI) in recent years, reinforcing its status as a manufacturing hub and a prime investment destination in Southeast Asia. In 2023, new FDI approvals amounted to an impressive US$36.61 billion, a 32.1% year-on-year increase, according to the Foreign Investment Agency under the Ministry of Planning and Investment. The manufacturing and […]
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