Global investors welcome Resolution 10 focus on high-quality FDI

Delegates attend the national conference on studying, disseminating, and implementing Resolution No.10-NQ/TW on developing the foreign-invested economic sector. Photo: VGP

A national conference was held in Hanoi on June 30 to disseminate and implement Resolution 10, which brought together government leaders, local authorities, and representatives of international businesses and investment funds.

Drawing on Japan's experience, Takuya Sahashi, vice chairman of Mitsubishi Corporation Vietnam, said Resolution 10, together with Resolution 68 on private sector development, would serve as the "two wheels" driving Vietnam's next phase of economic growth.

He welcomed the resolution's emphasis on attracting high-quality foreign direct investment (FDI) while strengthening linkages between foreign-invested and domestic enterprises, stressing that Vietnam's long-term development should not rely solely on foreign capital.

"Vietnam's economic development should not depend only on attracting foreign investment, but also on enabling Vietnamese enterprises to participate more deeply in global value chains," Sahashi said. "Through this process, advanced technologies, modern management practices, and international standards will gradually spread to domestic businesses, creating stronger spillover effects and reinforcing the country's industrial base."

To help realise the resolution's objectives, Sahashi called for a national programme to nurture domestic suppliers with strong growth potential, arguing that helping foreign-invested enterprises identify capable local partners is critical to expanding supply chains.

He also proposed improving supplier databases, expanding business-matching platforms and trade exhibitions, simplifying support programmes for SMEs, strengthening upstream industries, and encouraging closer collaboration between educational institutions and businesses to develop a highly skilled workforce. He added that tax incentives for corporate investment in vocational training and education should also be considered.

Citing a recent survey by a Japanese government agency, Sahashi noted that 57 per cent of Japanese companies operating in Vietnam plan to expand their businesses, the highest proportion among ASEAN countries.

"This demonstrates Japanese companies' confidence in Vietnam's long-term investment prospects," he said.

Representatives of international investment funds also welcomed Resolution 10, describing it as a strong signal of Vietnam's commitment to improving FDI quality and developing the capital market as a strategic channel for mobilising international resources.

Dominic Scriven, chairman of Dragon Capital, described Resolution 10 as "a very important resolution for foreign investors" because it clearly recognises the foreign-invested sector as "an inseparable part of Vietnam's economy," reinforcing the principle of equal treatment for all investors.

He also welcomed the resolution's shift from attracting capital by volume to prioritising investment quality, saying, "It is no longer just about capital, but about technology, management expertise, international standards, and sustainable development."

Scriven added that the resolution's commitment not to sacrifice the environment, natural resources, or social welfare for investment would strengthen Vietnam's long-term competitiveness.

Scriven said he was particularly encouraged that the resolution identifies the capital market as an important component of the foreign-invested economy. However, he warned that high financing costs remain a major constraint.

"The gap in the cost of capital between the public and private sectors is still too wide," he said, noting that while the State Treasury can issue long-term bonds at around 4 per cent annually, many businesses still pay 10-12 per cent on three-year corporate bonds.

Dragon Capital therefore proposed incentives for foreign-invested enterprises to retain profits for reinvestment in Vietnam, faster progress towards emerging market status, completion of the central counterparty framework, improvements to foreign exchange mechanisms, a review of foreign ownership limits where appropriate, and more flexible listing requirements for innovative technology and AI companies with accumulated losses.

Meanwhile, Michael Kokalari, chief economist at VinaCapital, said Vietnam was becoming "an increasingly attractive destination for international investors" and argued that the country should maintain momentum in developing large-scale infrastructure projects.

"These projects require substantial long-term capital, and this is an area where VinaCapital and international investors can partner with Vietnam," he said.

Kokalari added that Resolution No10 would further strengthen the economy by encouraging closer linkages between foreign-invested enterprises and domestic suppliers, enhancing Vietnam's competitiveness and attractiveness to global investors.