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But experts say the real opportunity for domestic businesses lies in technology transfer, higher localization rates and stronger links to global supply chains.
Vietnam must be selective about FDI, economist says
According to the National Statistics Office under the Ministry of Finance, total registered foreign direct investment (FDI) in Vietnam reached a record $50.36 billion in the first nine months of 2026, up 76.4% from the same period in 2025.
Economist Dr. Nguyen Tri Hieu said that beyond the amount of FDI actually disbursed, greater attention should be paid to where the capital originates, particularly the distinction between funds brought into Vietnam by foreign investors and money raised through domestic credit institutions.
Understanding the composition of these funding sources, he argued, would allow for a more comprehensive assessment of FDI flows and their impact on the economy.
Hieu noted that foreign-invested enterprises are no longer concentrating solely on manufacturing and processing for export. They are also expanding into real estate, electricity and consumer goods.
He described this diversification as a positive development that brings additional resources into the economy and supports growth across different industries.
However, he cautioned that investment in real estate requires appropriate oversight to ensure capital is used effectively and to reduce the risks of speculation, inflated property prices and real estate bubbles.
"We welcome foreign-invested companies to Vietnam, but we cannot accept FDI at any cost," Hieu stressed.
This position is also consistent with the government's broader approach of prioritizing investment quality rather than pursuing foreign capital at any price.
Hieu recalled that three decades ago, Vietnam largely attracted foreign investors through its low labor costs, while localization rates stood at just 5-10%.
Today, localization rates in some industries have climbed to around 52%, marking significant progress in the country's efforts to attract and benefit from foreign investment.
Nevertheless, Hieu believes Vietnam should expect more from foreign investors than capital alone.
"What we need from FDI is capital, technology and management expertise," he said, emphasizing the importance of reducing the economy's dependence on foreign-invested enterprises.
He argued that localization rates should continue rising from current levels to 60%, 70%, 80% and eventually 90%, as China has achieved.
To illustrate his point, Hieu cited China's experience several decades ago, when the country required foreign investors entering its market to transfer technology.
China has since developed into a major high-technology economy, a transformation he said was partly driven by those technology transfers.
Vietnamese businesses need a stronger foothold in global supply chains
According to the CEO of SGS Vietnam, the country should look beyond the amount of capital foreign investors bring in and instead recognize FDI as a catalyst for strengthening domestic supply chains.
This approach could create opportunities for Vietnamese small and medium-sized enterprises to gradually enter global supplier networks.
He emphasized that building trust with international partners is crucial for local businesses seeking to participate in these networks.
To become suppliers to major multinational corporations, Vietnamese companies must demonstrate that they can consistently meet international quality requirements and product standards.
"Most of our customers in Vietnam today are FDI enterprises, including tier-one, tier-two and even tier-three suppliers to major global corporations," he said.
According to the executive, international buyers tend to continue choosing foreign-invested suppliers because these companies have already demonstrated their ability to meet global product standards and requirements.
This presents a challenge that Vietnamese businesses must address if they want to secure a more substantial position in international supply chains.
Although Vietnam has a population of more than 100 million and a relatively large domestic consumer market, Jackson Woo pointed out that developing domestic sales and participating in global supply chains are two very different objectives.
Alongside efforts to stimulate domestic consumption, he said Vietnam needs to help local suppliers integrate more deeply into international production networks by building an innovation ecosystem founded on trust.
Once a connected business ecosystem is established, the next challenge is to strengthen the actual capabilities of domestic enterprises so they can take on more important roles within global supply chains.
Addressing this issue, Cha Ji Ho, Deputy General Director in charge of the Purchasing Center at Samsung Vietnam, said the company has long linked the development of Vietnamese suppliers with its efforts to improve supply chain stability.
With global supply chains undergoing significant restructuring, Samsung has taken a systematic approach to building the capabilities of domestic enterprises.
The process has progressed through several stages, beginning with improvements to basic manufacturing operations.
Between 2015 and 2021, Samsung provided consulting support to 379 Vietnamese enterprises and trained 406 specialists.
The company subsequently shifted toward developing core manufacturing capabilities through its Smart Factory model.
In 2026 alone, Samsung supported an additional 14 enterprises, bringing the total number of businesses implementing standardized Smart Factory models to 96.
It also trained hundreds of specialists in smart mold-making and automation technologies.
According to Cha Ji Ho, Samsung plans to adjust its support strategy for Vietnamese enterprises in three main directions: expanding the scale of assistance, improving its quality and implementing programs more systematically, in line with the orientations of Resolution 10 and Resolution 280.
Specifically, programs supporting domestic enterprises will be expanded geographically.
Rather than focusing primarily on Bac Ninh and Ho Chi Minh City, Samsung will extend its activities to Phu Tho, Hai Phong and Thai Nguyen.
The company also intends to provide more intensive assistance through on-the-job training (OJT) and the development of in-house instructors.
The aim is to help Vietnamese enterprises build the capacity to make continuous improvements independently, even after foreign specialists are no longer directly involved.
Tuan Nguyen
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