FDI must generate broader economic spillovers
The goal of attracting FDI is no longer measured solely by capital inflows or the number of projects, but also by its ability to generate broader spillover effects and strengthen linkages with domestic businesses to improve growth quality.
From attracting investment to creating spillovers
After nearly four decades of economic reforms and international integration, the foreign direct investment (FDI) sector has become a key driver of Vietnam's economy. Those achievements have also raised expectations for the quality and impact of future foreign investment.
An FDI project may generate substantial revenue or export earnings, but its contribution to the broader economy remains limited if domestic companies are excluded from its supply chain. That principle is reflected in Politburo Resolution No. 10-NQ/TW, issued on June 8, 2026, on the development of the FDI sector. The resolution identifies the effective management and use of foreign investment to strengthen linkages and create spillover effects across the domestic economy as one of its key objectives.
Strengthening connections between FDI enterprises and domestic businesses should therefore become an integral part of investment attraction efforts, creating more opportunities for Vietnamese companies to participate in manufacturing and supply chains, access technology and modern management practices, and improve their competitiveness.
In Hai Phong, the city attracted about USD 3.1 billion in FDI in the first half of 2026, bringing the cumulative total to nearly 1,900 active projects with combined registered capital of around USD 54 billion. While those figures highlight the city's attractiveness to foreign investors, they also underscore the need to translate FDI inflows into broader development opportunities for local businesses. Attracting new investment is only the first step; creating mechanisms that enable domestic companies to participate more deeply in the production networks of FDI enterprises is equally important.
Growing together in the supply chain
Closer cooperation between FDI and domestic enterprises benefits both sides. Vietnamese companies gain greater access to markets, technology and management expertise, while foreign investors can build local supplier networks, reduce costs, shorten delivery times and strengthen resilience against disruptions to global supply chains.
Such linkages, however, do not develop automatically. To become suppliers to multinational corporations, Vietnamese enterprises, including those in Hai Phong, must meet increasingly stringent requirements for product quality, corporate governance, delivery schedules, traceability, environmental standards and social responsibility. Achieving those standards requires sustained investment in technology, human resources and management capabilities rather than relying primarily on low-cost competitiveness.
At the same time, foreign-invested enterprises should view the development of domestic suppliers as part of their long-term investment strategy in Vietnam. Greater transparency in procurement demand, supplier assessments, technical support and expanded cooperation would enable more Vietnamese companies to integrate into global supply chains. As domestic enterprises become more competitive, foreign investors also benefit from a stronger and more efficient manufacturing ecosystem.
The spirit of Resolution No. 10 is to improve the quality and effectiveness of the FDI sector by strengthening its linkages with the domestic economy. That requires deeper and more substantive cooperation between foreign-invested and Vietnamese enterprises, ranging from information sharing and supplier development to technology transfer and broader business partnerships.
Only when domestic enterprises grow alongside the foreign-invested sector can FDI generate meaningful spillover effects, strengthening Vietnam's economic resilience, competitiveness and position in global value chains.
Hai Phong News