Vietnam moves to link FDI incentives with support for domestic suppliers
The Ministry of Finance is studying Investment Law changes as Vietnam targets about 10,000 domestic firms in foreign investors’ supply and value chains by 2030.
Vietnam is moving towards investment incentives tied more closely to foreign investors’ commitments and performance in developing domestic suppliers. The Ministry of Finance is examining amendments to the Investment Law that would provide more generous preferences while making investment selection more targeted.
Commitments would cover technology transfers, workforce training, technical assistance and opportunities for Vietnamese businesses to enter foreign investors’ supply networks. VNA reported that localisation in foreign direct investment production chains currently stands at just 20-25%.
The policy direction follows Politburo Resolution 10-NQ/TW, dated June 8, 2026, which prioritises high-tech foreign investment with benefits for the domestic economy. It sets a 2030 goal of bringing about 10,000 Vietnamese businesses into foreign-invested enterprises’ supply and value chains, including 500-1,000 tier-1 suppliers.
Bui Thu Thuy, Deputy Director of the Foreign Investment Agency under the Ministry of Finance, said technology transfers remain limited. Citing Ministry of Science and Technology figures, she said around 400 contracts were recorded in 2018-2022, largely involving parent companies and their Vietnamese branches and serving the foreign businesses’ own operations.
Samsung Vietnam plans to expand supplier support to more locations and participating businesses while developing more specialised capabilities, according to Cha Ji Ho, its Deputy General Director responsible for the procurement centre. The company proposed a supplier database and clearer government support frameworks, alongside an annual Supplier Development White Paper to help coordinate cooperation and monitor supply-chain development over the long term.
