How FDI inflows contribute to the industrialisation in Vietnam?

Foreign Direct Investment (FDI) has been and continues to be one of the most important driving forces behind Vietnam’s industrialization and modernization over the past three decades, since the country adopted the Đổi Mới (Renovation) policy in 1986. This capital flow has not only contributed to economic growth but also brought technology, management knowledge, created jobs, and helped Vietnam gradually integrate more deeply into global value chains. However, the limitations of FDI in supporting industrialization in Vietnam have also become apparent. Many FDI projects still focus heavily on processing and assembly activities with low added value; technology transfer and linkages with domestic enterprises remain weak; and Vietnam’s exports are heavily dependent on the FDI sector.