Vietnam is positioning itself as a strategic destination amid geopolitical volatility and shifting global shoring trends, aiming to secure mutual and sustainable benefits in investment negotiations with multinational corporations.

Investors are concerned with road transport bottlenecks (80% of freight moves by road), subpar logistics (Vietnam ranked 43rd of 140 in the World Bank Logistics Performance Index 2023), and the need for simpler, faster administrative procedures to reduce compliance risk.

FDI is broadening beyond manufacturing into services such as telecommunications, finance, banking, and retail, with investors calling for improved logistics, reliable energy, and streamlined administration.

Vietnam’s appeal rests on macroeconomic stability, a growing domestic market, port infrastructure, a young workforce, attractive FDI incentives, and its flexible “bamboo diplomacy” approach to international engagement.

The government is pursuing reforms to boost internal capabilities, reduce regulatory overlap, and deepen local participation in global value chains to attract higher-value, sustainable investments.

Vietnam maintains Comprehensive Strategic Partnerships with all five permanent UN Security Council members and has numerous other partnerships, plus 17 free trade agreements that open access to markets in over 50 countries.

Global FDI patterns are shifting due to supply chain diversification and geopolitical risk, with firms favoring friend-shoring, near-shoring, and reshoring, though long-term success still depends on solid fundamentals like macro stability, skilled labor, and strong infrastructure.

Vietnam should leverage its competitive advantages to negotiate fairer, more selective FDI deals that balance the interests of the state and foreign investors while building long-term partnerships.