As ASEAN becomes a destination for foreign direct investment (FDI), Vietnam has emerged as a bright spot thanks to its political stability and deep international integration. However, competition in the region is growing ever fiercer, demanding new thinking and new approaches. We spoke with Mr. Pham Ho Bac – Director of the Vietnam – ASEAN Private Economic Development and Cooperation Center (VAPEDCO) – about today’s FDI landscape, the opportunities and challenges of integration, and VAPEDCO’s strategic role in elevating Vietnamese businesses.
Sir, how do you assess Vietnam’s current FDI attraction compared with other ASEAN countries?
Foreign direct investment (FDI) into Vietnam has maintained positive growth momentum, especially in high-tech manufacturing, renewable energy, logistics infrastructure and financial services. Vietnam is among the top three FDI destinations in ASEAN, behind only Singapore and Indonesia.
However, the regional FDI picture is shifting in notable ways. Indonesia and Malaysia are stepping up policies to attract investment in green industries and semiconductors, while Thailand is focusing on electric vehicles and supply chains. In this context, Vietnam’s advantages – political stability, competitive labor costs and a network of more than 15 free trade agreements (FTAs) – remain significant.
Even so, the FDI race in ASEAN is becoming increasingly intense. To maintain and strengthen its competitiveness, Vietnam cannot rely solely on tax or land incentives; it must focus on improving infrastructure quality, training human resources and enhancing governance capacity at the local level. At the same time, it should flexibly apply its “bamboo diplomacy” – supple yet steadfast – to achieve its economic development goals while maintaining balance in a complex geopolitical environment.
In your view, how should Vietnamese businesses change to integrate deeply into international markets?
Despite significant progress, many Vietnamese businesses still have limitations in management capacity, international standards and the ability to participate in global value chains – and are particularly weak in international legal matters. Many costly lessons from integration show that, in order not to fall behind, businesses need to make strategic changes.
Three directions for change should be prioritized:
- First, an internationalization mindset: Vietnamese businesses should not stop at exporting products but aim to “export business models” – building sustainable brands, standardizing processes and implementing ESG (environmental, social and governance) management systems in line with global standards.
- Second, digital transformation and technological innovation: Applying technologies such as AI, big data and automation will help businesses improve efficiency, reduce costs and increase adaptability.
- Third, public – private partnership (PPP) and regional linkages: Rather than competing alone, Vietnamese businesses need to learn to cooperate with partners across ASEAN to expand markets together and share resources.
In short, what is needed is a shift in mindset: from producing to sell to innovating to lead – that is the path to sustainable integration and long-term development.
How has VAPEDCO supported Vietnamese businesses so far?
The Vietnam – ASEAN Private Economic Development and Cooperation Center (VAPEDCO) was established to connect domestic private-sector resources with international partners, especially in investment, project development and technology transfer.
Over the past period, we have carried out several key tasks:
- Supporting businesses in preparing investment projects, providing legal and planning advice, and connecting them with international strategic investors;
- Working with many localities such as Ha Tinh, Nghe An, the former Binh Dinh and the former Quang Nam provinces to implement large-scale projects in culture, tourism, urban development, industry and high-tech agriculture;
- Organizing training, consulting and private economic forums to provide policy information, improve competitiveness and expand international cooperation for businesses.
More than just a bridge, VAPEDCO also coordinates public – private partnership (PPP) models, helping private enterprises take part in major projects in a structured, transparent and effective way.
What are VAPEDCO’s plans for the coming period to support Vietnamese businesses and connect them with international investors?
For 2025 – 2030, VAPEDCO aims to become one of the leading multinational investment coordination and promotion organizations in ASEAN. We are focusing on three main pillars:
- First, building the “ASEAN – Vietnam Business Alliance” platform: Connecting strategic investors from Singapore, Malaysia, Thailand, Indonesia and elsewhere with Vietnamese businesses in priority sectors such as infrastructure, tourism, energy and smart cities.
- Second, establishing Local Investment Support Offices: Supporting local authorities in project preparation, completing legal documentation, sourcing capital and advising on implementation under international models such as PPP, BOT and BOO.
- Third, accompanying Vietnamese businesses through deep integration: Supporting international financial management and access to capital from regional and global investment funds, while fostering a cooperation ecosystem between the State, businesses, research institutes and international partners.
Our greatest goal is to help make Vietnam a safe, stable and sustainably profitable investment destination in the region, while helping Vietnamese businesses rise and integrate deeply into global value chains.
Thank you very much, sir!
Source: https://thuonghieucongluan.com.vn/hoi-nhap-quoc-te-va-thu-hut-fdi-ben-vung-vai-tro-chien-luoc-cua-vapedco-a289362.html
