Vietnam lawmakers seek performance-based incentives for foreign investment

Vietnamese lawmakers supported proposed Investment Law changes on October 24, calling for investment incentives to reflect technology transfer and economic results rather than the amount of capital attracted or number of projects.

During group discussions, National Assembly President Tran Thanh Man urged legislators to put eligibility criteria for special incentives directly into the law, leaving fewer details to subordinate regulations. He sought oversight, post-audit checks and mechanisms to recover incentives based on actual performance, with benchmarks including local content ratios and centres for transferring core technologies.

Man also requested stronger justification from the Government for proposals such as allowing projects in eco-industrial parks to operate for up to 70 years. He called for closer connections between foreign investment and domestic businesses, prioritising projects involving advanced technology, higher added value and environmentally friendly activities.

Ninh Binh deputy Le Van The said assistance for Vietnamese suppliers should be judged by improvements in their technology, production capabilities and value-chain position, not simply by how many companies join supply chains. Such support must comply with Vietnam’s international treaty commitments, he said.

Finance Minister Ngo Van Tuan said the amendments aim to put the Politburo’s Resolution 10-NQ/TW on foreign-sector development into law. He cited a 2026 target of at least US$30 billion in disbursed foreign direct investment, against US$21 billion recorded during the first nine months. As of August, Vietnam had 47,796 operating FDI projects, representing US$561.6 billion in registered capital, he said.