Vietnam has emerged as one of the key investment destinations for foreign investors in recent years, attracting numerous large-scale projects across various critical sectors. How do you assess the management, appraisal, and evaluation of foreign investment in Vietnam over recent years?

Since the enactment and enforcement of the Law on Foreign Investment in Vietnam (now the Law on Investment) in December 1987, Vietnam has seriously and effectively implemented the appraisal and evaluation process for licensing foreign investment projects. At the same time, the management and support for investment projects throughout their operational phases in Vietnam have been carried out strictly, in accordance with foreign investment laws and other relevant legal regulations. This has been done based on the principle of ensuring consistency across all levels of governance, from the central to the local level. Furthermore, Vietnam has committed to providing comprehensive guidance, support, and the most favorable conditions for foreign investors, considering their success as the country’s success, sharing both risks and achievements.

As a result, Vietnam has successfully attracted foreign investment since the early 1990s. Despite global challenges such as regional financial crises, the Covid-19 pandemic, and shifts in global supply chains amid intensifying competition between major economies, FDI inflows into Vietnam have continued to grow, with each successive phase witnessing higher investment volumes and improved project quality.

Figures indicate that during the 2015-2019 period, total registered foreign investment in Vietnam exceeded $143.62 billion, with disbursed capital reaching $87.28 billion. In the 2020-2024 period, these figures increased to $176.8 billion and $110.65 billion, respectively. This demonstrates that the appraisal and evaluation of foreign investment projects have generally ensured effectiveness.

In 2024, the international geopolitical landscape became significantly more complex compared to previous periods, which influenced global investment capital flows. Vietnam, with its open investment environment, deep economic integration, and strong competitiveness, partly due to its rigorous project appraisal process, has remained an attractive destination for many foreign investors.

However, alongside rising foreign investment, there has also been an influx of lower-quality projects that do not align with Vietnam’s new investment strategy. As Vietnam’s economy progresses, it requires projects that emphasize advanced technology, large-scale operations, environmental protection, and green investment; areas the country is prioritizing.

Considering the current quality of foreign investment projects, it is evident that project selection must be based on clear, non-arbitrary criteria that are uniformly applied at the national, regional, and sectoral levels. More importantly, all government agencies responsible for foreign investment management, as well as specialized regulatory bodies overseeing FDI activities in Vietnam, must consistently enforce these standards.

The Prime Minister issued Decision No. 315/QD-TTg on February 18, establishing a set of criteria for evaluating the effectiveness of foreign investment in Vietnam. The strict implementation of this Decision is a crucial step in cementing Resolution No. 50-NQ/TW, which emphasizes ensuring the quality of approved projects through the principles of diversification and multilateralization of investment partners while leveraging Vietnam’s market appeal.

What is the significance of Resolution No. 315 in guiding the management, appraisal, and evaluation of foreign investment projects?

In essence, the issuance of a set of criteria does not represent a major shift but rather a formalization of existing indicators, with additional updates to ensure uniform implementation nationwide. This applies across ministries, sectors, and localities before granting investment registration certificates to foreign investors, ensuring that no negative impacts from foreign investment on Vietnam’s economy, society, or environment are overlooked. In fact, there have been cases where foreign investors exploited regulatory loopholes, leading to severe environmental consequences, particularly in Vietnam’s marine ecosystem.

Resolution No. 315 includes a total of 42 indicators, with 29 economic indicators, eight social indicators, and five environmental indicators detailing the criteria for assessing the effectiveness of foreign investment based on different project impacts. Notably, these criteria are accompanied by guidelines on how to determine their specific content.

If State agencies responsible for foreign investment strictly adhere to evaluating project criteria before granting approval, the quality of foreign investment projects will undoubtedly improve. This aligns with the current priority of “quality over quantity”.

The volume of registered FDI that remains undisbursed is still substantial. As of December 31, 2024, Vietnam had 42,002 valid foreign investment projects with total registered capital of nearly $502 billion. However, only some $322 billion had been disbursed, accounting for 64.1 per cent of the total, leaving approximately $180 billion, or 35.9 per cent, yet to be disbursed. This is a significant figure, especially in the context of Vietnam’s need for capital to drive growth and development in the time ahead.

Regarding investment sectors this year and beyond, foreign investment will continue to be concentrated in the manufacturing and processing industries, particularly in electronics and semiconductors. Although the geopolitical situation remains complex and difficult to predict accurately, investment capital is expected to reach or slightly exceed the 2024 level ($38.2 billion). Vietnam remains an attractive and competitive investment environment despite ongoing challenges, such as the shortage of high-quality human resources.

Some opinions suggest that establishing a rigid regulatory framework makes implementation challenging. What is your perspective on this issue?

Any new requirements for tasks in the initial phase will inevitably bring some difficulties. However, given the current level of expertise among officials managing foreign investment, they should be able to effectively adopt and implement the evaluation of foreign investment effectiveness using the criteria set out in Resolution No. 315.

The enforcement of laws in general, and those related to foreign investment in particular, must strictly adhere to the legal provisions in place, leaving no room for flexibility. If any criteria are found to be inappropriate, they should be promptly reviewed and proposed to relevant authorities for adjustment to ensure proper resolution.