On April 23rd, the Institute for Policy and Strategy Research (under the Central Theoretical Council), in collaboration with Vietnam Economic Times, hosted the 5th Vietnam Connect Forum 2025 in Hanoi, themed “Vietnam – FDI Strategy in the New Era.” Addressing attendees, Mr. Lim Dyi Chang, Senior Director, Corporate Banking, UOB Vietnam, posited that amid profound shifts reshaping the global trade landscape, Vietnam is not only emerging as a compelling destination for foreign direct investment (FDI) but also as a market of significant interest to international investors.

VIETNAM WITHIN ASEAN’S GROWTH TRAJECTORY

Mr. Lim Dyi Chang observed that since the COVID-19 pandemic, the world has witnessed a robust restructuring of global supply chains. Trends such as decoupling, de-risking, onshoring, and diversification of sourcing are exerting considerable influence on how FDI enterprises formulate and implement investment strategies. Furthermore, fluctuating trade policies, tariffs, and complex geopolitical dynamics are amplifying pressure on global production and trade networks. Currently, enterprises are actively seeking investment destinations that demonstrate rapid adaptability, effective risk mitigation capabilities, and sustainable development prospects. Citing positive long-term prospects, Mr. Lim Dyi Chang maintained that ASEAN remains one of the world’s fastest-growing regions, underpinned by a young population, a technologically adept workforce, and an increasingly integrated intra-regional trade network.

Mr. Lim Dyi Chang, Senior Director, Corporate Banking, UOB Vietnam, emphasized Vietnam’s strategic role within the regional value chain, connecting ASEAN economies: “Vietnam is not only emerging as an attractive FDI destination but also plays a pivotal strategic role in the regional value chain, connecting ASEAN economies,” he underscored. To fully realize this potential, Mr. Lim Dyi Chang argued that Vietnam must evolve from a mere capital recipient to a proactive strategic partner, generating value add. “Specifically, the success of an FDI strategy is not solely measured by the volume of capital attracted but, more critically, by the efficacy of that capital in enhancing industry capabilities, fostering community development, promoting technology transfer, and contributing positively to the region’s sustainable development,” he elucidated.

CRITICAL FACTORS FOR MAINTAINING VIETNAM’S FDI HUB STATUS

Vietnam is increasingly solidifying its position as a desirable destination for international investors. To maintain and enhance its FDI hub status, Mr. Lim Dyi Chang proposed that Vietnam concentrate on seven pivotal factors to ensure future competitiveness and sustainability:

Firstly, prioritize the development of modern and synchronized infrastructure, particularly in logistics, energy, and digital connectivity—essential foundations for ensuring operational efficiency and scalability for enterprises.

Secondly, maintain a transparent, stable, and efficient legal environment, thereby bolstering investor confidence and enhancing national competitiveness.

Thirdly, foster close collaboration between the public and private sectors, especially in workforce development, regulatory compliance, and the promotion of innovation—critical elements for long-term competitiveness. The 5th Vietnam Connect Forum 2025, themed “Vietnam – FDI Strategy in the New Era.”

Fourthly, maintain an open and efficient financial ecosystem that supports capital flows, addresses diverse financing needs, and promotes financial innovation.

Fifthly, cultivate a thriving middle class, which not only stimulates domestic consumption but also plays a crucial role in providing skilled labor for Vietnam in the future.

Sixthly, demonstrate a strong commitment to sustainable development and ESG standards, which are essential considerations in investment decisions by global financial institutions.

Finally, develop flexible policies that align with the development of the digital economy, thereby facilitating innovation within an efficient governance framework.

“In the new era of FDI, Vietnam stands at a golden opportunity to emerge as a strategic, high-value, and future-ready investment destination. However, success cannot be achieved solely through promotional measures or policy reforms. It is also a story of a robust foundation of investment in infrastructure, people, trust, and transformation,” Mr. Lim Dyi Chang affirmed.

FDI investment UOB Vietnam Connect Forum 2025 Vneconomy 16:13 23/04/2025 Phương Nhi

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Source: VNECONOMY
This article has been adapted from its original source.