The “central task” of Resolution No. 10-NQ/TW
Stronger linkages between foreign direct investment (FDI) enterprises and Vietnamese businesses have been identified as one of the key priorities of Resolution No. 10-NQ/TW on the development of the foreign-invested economic sector. At the national conference on studying, disseminating and implementing Resolution No. 10, General Secretary and President To Lam called for “the vigorous development of the domestic industrial ecosystem and substantive linkages between FDI enterprises and Vietnamese businesses,” stressing that this constitutes “a central task of the Resolution.”
Nearly four decades of attracting foreign investment have helped turn Vietnam into a manufacturing base for many multinational corporations. However, linkages between the FDI sector and Vietnamese businesses have yet to meet expectations. Many experts describe the situation as “two economies coexisting within one country”: on one side is the highly productive FDI sector, deeply integrated into global value chains; on the other, the majority of domestic enterprises remain outside the supply chains of multinational corporations.
This divide stems from several factors. First, for many years, the success of localities was measured primarily by the number of FDI projects and the amount of registered capital they attracted. Indicators reflecting spillover effects, such as the number of Vietnamese enterprises participating in supply chains or the proportion of domestic procurement, did not receive sufficient attention. Consequently, policy focused heavily on attracting investment, while the development of domestic enterprises’ capabilities did not receive commensurate support.
This has led to another major bottleneck. After nearly four decades, Vietnam has yet to build a sufficiently strong domestic industrial ecosystem. Most Vietnamese supporting-industry enterprises remain unable to meet the stringent quality, governance and production standards required by global corporations.
Furthermore, many multinational corporations investing in Vietnam bring with them global supplier networks that have been built and tested over many years. Vietnamese enterprises therefore find it extremely difficult to gain a foothold unless they can demonstrate outstanding capabilities.
The market also lacks an effective connection mechanism. Vietnamese businesses have insufficient information about FDI enterprises’ procurement needs, technical standards and localisation road maps. Meanwhile, FDI enterprises also face difficulties identifying capable domestic suppliers.
This reality demonstrates that creating more “substantive” linkages between FDI enterprises and Vietnamese businesses cannot depend on the efforts of any single stakeholder. General Secretary and President To Lam has placed this responsibility on the State, FDI enterprises and Vietnamese businesses alike.
For ministries, sectors and local authorities, the task is not merely to attract foreign corporations but also to enhance the capabilities of Vietnamese enterprises so they can become suppliers to those corporations. It is also necessary to establish a supplier database, strengthen connections between FDI enterprises and domestic businesses, and help Vietnamese companies improve their governance, technical standards, financial capacity, traceability, intellectual property management and digital transformation.
For FDI enterprises, the General Secretary and President requested that they disclose their procurement needs, technical standards, localisation road maps and cooperation opportunities. Major corporations investing in Vietnam should also contribute to the development of supporting industries, provide supplier training, share standards, transfer knowledge and enable domestic enterprises to participate more deeply in value chains.
This comprehensive package of solutions goes directly to the root of the problem and simultaneously addresses all three links in the connectivity chain: the State creates the necessary institutions and infrastructure; Vietnamese enterprises improve their competitiveness; and FDI enterprises expand opportunities for cooperation and promote knowledge transfer. The remaining challenge lies in implementation.
The experience of the Republic of Korea, Taiwan (China) and China shows that no country has built a strong industrial base solely by attracting FDI. National competitiveness depends on the ability to transform investment inflows into stronger domestic business capabilities — spanning technology, governance and the development of supplier networks.
Therefore, every ministry, sector, locality and business community must devise a concrete action programme that clearly defines the tasks, deadlines and responsibilities involved in implementing Resolution No. 10 in general, and the measures to develop the industrial ecosystem and strengthen linkages between FDI enterprises and Vietnamese businesses in particular.
Only then can Vietnamese enterprises “grow together” with FDI enterprises, enabling Vietnam to evolve from a manufacturing base into an economy capable of generating greater value, mastering technology and participating more deeply in global value chains.