Vietnam has entered a new phase in its foreign investment strategy.
With the issuance of Politburo Resolution No. 10-NQ/TW dated 8 June 2026 (“Resolution 10”), the Government has made clear that Vietnam’s future economic growth will no longer be driven primarily by low-cost manufacturing, inexpensive land or broad tax incentives. Instead, the country’s ambition is to attract foreign investment that delivers advanced technology, innovation, research and development (R&D), high-quality employment and stronger integration of Vietnamese enterprises into global value chains.
Although Resolution 10 is a Communist Party policy document rather than legislation, it provides an important indication of Vietnam’s future regulatory direction. Historically, major Party resolutions have served as the policy foundation for subsequent legislation and administrative reforms. Foreign investors should therefore view Resolution 10 as an early roadmap for the next generation of Vietnam’s investment framework.
- Vietnam Changes Its Investment Philosophy
For more than three decades, Vietnam established itself as one of Asia’s leading destinations for foreign direct investment by offering competitive labour costs, political stability, attractive tax incentives and access to international markets through an extensive network of free trade agreements.
Resolution 10 signals a significant evolution of this strategy.
Rather than competing primarily on cost, Vietnam now intends to compete on quality. The Government seeks to attract investment that enhances productivity, strengthens technological capabilities and supports the country’s long-term economic transformation.
Future investment projects are expected to demonstrate meaningful contributions in areas such as:
- research and development;
- advanced technologies and innovation;
- technology transfer;
- development of highly skilled human resources;
- integration of Vietnamese enterprises into global supply chains; and
- sustainable economic development.
In other words, Vietnam is moving from attracting more foreign investment to attracting better foreign investment.
- Priority Sectors for Future Investment
Resolution 10 identifies several strategic industries that are expected to receive strong policy support and become the focus of future investment promotion.
These include:
- semiconductor manufacturing;
- artificial intelligence (AI);
- big data and cloud computing;
- blockchain technologies;
- the Internet of Things (IoT);
- biotechnology and biomedicine;
- renewable energy and green technologies;
- advanced and high-value manufacturing;
- digital infrastructure and data centres;
- logistics and smart infrastructure; and
- the development of international financial centres, particularly in Ho Chi Minh City.
These sectors are expected to play a central role in Vietnam’s ambition to become a regional innovation and technology hub over the coming decade.
- A New Incentive Model: From Tax Benefits to Performance-Based Partnership
One of the most significant messages contained in Resolution 10 is the Government’s intention to modernise Vietnam’s investment incentive framework.
Traditional incentives based primarily on tax holidays, preferential land rental and investment scale are gradually giving way to a more sophisticated approach.
Instead, incentives are expected to become increasingly linked to measurable economic contributions.
Future support is likely to depend upon an investor’s ability to demonstrate tangible achievements, including:
- actual R&D expenditure;
- successful technology transfer;
- development of Vietnamese suppliers;
- localisation of supply chains;
- creation of highly skilled employment; and
- implementation of sustainable and environmentally responsible business practices.
This reflects a broader policy shift from incentive-based attraction towards performance-based partnership, rewarding investors that contribute to Vietnam’s long-term competitiveness and industrial upgrading.
- Stronger Integration with the Domestic Economy
Resolution 10 also addresses one of the Government’s long-standing concerns: the limited integration between certain foreign-invested enterprises and domestic businesses.
Going forward, foreign investors are expected to generate greater “spillover effects” for the Vietnamese economy.
This includes:
- developing local supplier networks;
- assisting Vietnamese enterprises in meeting international quality standards;
- sharing technology and management know-how;
- supporting workforce development; and
- strengthening Vietnam’s participation in global value chains.
The Government’s objective is not simply to increase foreign investment, but to maximise its positive impact across the broader economy.
- What Should Foreign Investors Do Now?
Although implementing legislation will follow over time, Resolution 10 already provides valuable insight into the Government’s policy priorities.
Foreign investors considering new projects or expanding existing operations in Vietnam should begin preparing now by:
- incorporating meaningful R&D and innovation components into investment proposals;
- developing clear localisation and supplier development strategies;
- strengthening ESG and sustainability commitments;
- demonstrating technology transfer and workforce development plans;
- evaluating whether future projects align with Vietnam’s strategic priority sectors; and
- closely monitoring forthcoming amendments to the Law on Investment, tax legislation, industrial zone regulations and related implementing measures.
Investors that proactively align their business strategies with these evolving policy priorities are likely to be better positioned to obtain regulatory support and benefit from Vietnam’s next generation of investment incentives.
Looking Ahead
Resolution No. 10 marks one of the most significant strategic shifts in Vietnam’s foreign investment policy in decades.
While the detailed legal framework will evolve over the coming months and years, the direction is already unmistakable. Vietnam is seeking not simply more foreign investment, but investment that delivers innovation, technology, sustainability, higher productivity and long-term economic value.
For international investors, the message is equally clear: future success in Vietnam will increasingly depend not only on the amount of capital invested, but on the quality of the investment and its contribution to the country’s economic development.
Companies that understand this shift early—and position themselves accordingly—will be best placed to benefit from Vietnam’s next chapter of growth.
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Please do not hesitate to contact Dr. Oliver Massmann at [email protected] should you have any questions or require further information regarding the implications of Resolution No. 10 or Vietnam’s evolving foreign investment framework.
Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.