Attracting new generation investment: Vietnam's plans to approve Resolution 10-NQ/TW of the Politburo

After nearly four decades since opening up to attract foreign investment, Vietnam is facing a new turning point in development policy. If the first phase of the renovation process is shaped by the goal of attracting as much foreign direct investment (FDI) as possible to replenish the economy, the current context poses another requirement: investment capital flows need not only to be larger, but to create higher value.

This is a change of strategic significance because after nearly 40 years of attracting FDI, Vietnam has achieved many achievements but also revealed increasingly clear limits.

Changing investment attraction strategies in the new context

This change does not stem from Vietnam's internal limitations but also from the shift of the global investment environment. The COVID-19 pandemic disrupted supply chains, geopolitical competition pushed multinational corporations to diversify production locations, while standards for sustainable development, digital transformation, and data protection became increasingly important conditions in investment decisions. In particular, the application of the Global Minimum Tax from 2024 has significantly reduced the effectiveness of tax incentives, a tool that has created a competitive advantage for many developing countries, including Vietnam.

In this context, the competitiveness between countries is no longer determined mainly by labor costs or investment incentives, but depends more and more on the quality of institutions, human resources, infrastructure, innovation ecosystems and the ability to connect domestic enterprises to global value chains. This is also a trend that many economies such as Singapore, Ireland or Malaysia are pursuing when adjusting their development strategies after many years of attracting FDI.

It can be seen that Resolution No. 10-NQ/TW dated June 8, 2026 of the Politburo (Resolution 10)[1] was issued in that context. If Resolution No. 50-NQ/TW in 2019 focuses on improving the quality and efficiency of foreign investment cooperation, Resolution 10 reflects a deeper shift in development thinking: shifting from the goal of attracting a lot of capital to attracting the right capital flows,  that is, capital flows capable of creating productivity, innovation and long-term competitiveness for the economy.

This is a change of strategic significance because after nearly 40 years of attracting FDI, Vietnam has achieved many achievements but also revealed increasingly clear limits. The FDI sector contributes significantly to growth and exports, but the localization rate in many industries is still low; research and development activities of FDI enterprises are not commensurate with the scale of investment; technology transfer took place slower than expected; while the link between FDI enterprises and domestic enterprises is still not strong enough to create a strong spillover effect.

Notable contents of Resolution 10

It is worth noting that Resolution 10 not only recognizes these shortcomings but also changes the way FDI is evaluated. If in the past success was often measured by the number of projects or the total registered capital, now the criteria are shifted to the quality of growth, innovation capacity, the level of participation of Vietnamese enterprises in the supply chain and the contribution of investment capital flows to national competitiveness.

Behind the change in evaluation is a bigger change in development philosophy. FDI is no longer seen merely as an additional source of capital for the economy but as a tool to upgrade the production structure and promote the transformation of the growth model. This also means that Vietnam will have to compete with more "difficult to replicate" factors such as institutional quality, policy stability, the ability to protect property rights, high-quality human resources and an innovation environment.

From Resolution 10, it can be seen that the year of great thinking shifts is being shaped.

Firstly, from attracting capital flows to building national capacity.

For many years, the investment attraction efficiency of a locality is often associated with the number of projects or the size of registered capital. This approach is appropriate when the economy is still short of capital, but no longer fully reflects the quality of growth in the current context. Resolution 10 aims to develop industry clusters, value chains and innovation ecosystems, in which FDI enterprises, Vietnamese enterprises, universities and research institutes are connected to create long-term value instead of developing single projects.

Second, from input incentives to outcome-based support.

This is perhaps the most important change in investment policy in the context of the global post-Minimum Tax. Instead of giving incentives mainly based on the size of capital, region or sector of investment, the Resolution aims to tie supportive policies to the results that investors actually generate, such as the level of technology transfer, research and development (R&D) spending,  the rate of using domestic suppliers, training human resources or contributing to green transformation and digital transformation.

This approach reflects a shift from a mindset of "encouraging investment" to "buying development results". The State is no longer only interested in how much capital investors bring into Vietnam, but more concerned about the long-term values that the project leaves behind after the investment process. However, this is also a content that puts very high requirements on the legal system in developing transparent, objective and verifiable evaluation criteria to limit disputes as well as ensure the predictability of policies.

Third, from project selection to strategic investor selection.

If in the past investment incentives were mainly based on the characteristics of the project, Resolution 10 began to focus on the capacity of the investor himself. Fields such as semiconductors, artificial intelligence, big data, biotechnology, new materials, clean energy or modern logistics are prioritized not only because of their economic value but also because of their ability to create a spillover impact on national competitiveness.

According to this approach, the investor's advantage will no longer lie mainly in the size of capital, but in the ability to demonstrate technological capacity, R&D plans, supply chain development strategies and long-term commitment to the Vietnamese economy. This is also a trend that is being applied by many countries when switching from competition by incentives to competition by the quality of the investment ecosystem.

In addition to changing the way investors are selected, Resolution 10 also significantly expands the scope of the strategy to attract international capital. For many years, Vietnam's investment policy has mainly focused on FDI, while indirect investment flows such as private equity funds, venture capital funds, pension funds or international financial institutions have not been considered an important component of the development strategy. This resolution shows a more comprehensive approach when setting the goal of developing the capital market, building an international financial center, upgrading the stock market and diversifying capital mobilization channels.

It can be seen that the above five shifts are all aimed at a common goal: improving the quality of capital flows instead of just increasing the scale.

This change has big implications for the mergers and acquisitions (M&A) market. As the capital ecosystem expands, Vietnamese businesses will have more opportunities to access long-term capital sources that come with technology, management experience, and a global business network. M&A activities are therefore not only a tool to transfer capital but also a way for businesses to upgrade their competitiveness, expand the market and receive modern management knowledge. This is also a direction in line with the international trend, when many economies consider high-quality financial capital flows as a driving force for innovation, not just financial resources.

In parallel with the expansion of investment attraction, Resolution 10 also reflects an increasingly popular governance trend in the world: opening the market but accompanied by more effective risk management. In the context of digital technology, artificial intelligence and data becoming strategic resources, the line between economic security and national security is increasingly blurred. Therefore, many countries have developed mechanisms to review foreign investment in sensitive sectors to ensure national interests while maintaining an open investment environment.

Although Resolution 10 has not yet established an investment review mechanism modeled after many developed economies, the orientations on capital origin control, verification of ultimate beneficial owners, risk assessment in key sectors and ensuring a balance between market opening and national defense,  security shows that Vietnam is gradually approaching this trend. This is not a sign of a narrowing of the investment environment, but a manifestation of a more mature investment environment, in which transparency and risk management become factors that strengthen investor confidence.

It can be seen that the above five shifts are all aimed at a common goal: improving the quality of capital flows instead of just increasing the scale. However, the ambitions of the Resolution will only become a reality if supported by a strong enough institutional reform program. Goals such as increasing the localization rate in key industries, developing Vietnamese enterprises to participate more deeply in the global supply chain or attracting leading technology corporations will not be achieved if the regulatory environment is still inconsistent.  administrative procedures are not really transparent and the quality of human resources has not kept up with the requirements of the digital economy.

Completing the legal framework to match the new orientation

Accordingly, the period from now to 2030 is likely to witness a large-scale legal improvement program in the fields of investment, enterprises, taxation, land, science and technology, data, intellectual property and capital markets. The notable point does not lie in the amendment of each individual law but in the requirement to build a unified policy system, in which investment support mechanisms, administrative procedures, data governance and protection of property rights operate together according to a common development mindset. This is the foundation for creating a country's long-term competitive advantage in the race to attract investment.

For Vietnamese businesses, Resolution 10 both opens up opportunities and sets requirements to change their development mindset. In the previous period, many businesses considered becoming a supplier for FDI enterprises as an important goal. However, in the new period, it is more important to become a high-value-added link in the global value chain. To do so, businesses not only need to invest in production capacity but also improve corporate governance, research and development, intellectual property, digital transformation, data governance, and ESG practices. These factors will increasingly become conditions for businesses to participate more deeply in international supply chains and access high-quality capital flows.

For foreign investors, Resolution 10 sends a clear message. Vietnam will continue to welcome projects with high technology content, great added value and spillover to the economy. However, the competitive advantage of investors will no longer lie mainly in the size of capital or the ability to take advantage of incentives, but in the ability to demonstrate the long-term value that the project can bring. That requires investors to prepare a more comprehensive investment strategy, from supplier development plans, R&D programs, human resource training to data management systems and compliance with sustainability standards.

From a long-term perspective, the greatest value of Resolution 10 does not lie in the numbers of investment capital or the number of projects that will be attracted in the future. More importantly, this document marks a shift in Vietnam's competitive model. After nearly four decades of relying heavily on cost advantages and investment incentives, Vietnam is gradually shifting to compete with institutional quality, innovation capacity and the ability to build a modern investment ecosystem. However, institutional advantage is not created by policy statements alone. It is only formed when the orientations in the Resolution are transformed into transparent legal regulations, favorable administrative procedures and a stable, highly predictable business environment.

Therefore, Resolution 10 should be seen not as the destination of FDI attraction policies but as the starting point of a new reform cycle. The success of that reform cycle will determine whether Vietnam will attract more investment or actually become a destination for technology, governance knowledge and innovation capabilities that will determine the economy's competitiveness for decades to come.

In the long term, that is the true meaning of "attracting new generation investment" that Resolution 10 aims for.