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As of March this year, Viet Nam had 42,760 valid foreign direct investment (FDI) projects, with a total registered capital of US$510 billion, Deputy Minister of Finance Do Thanh Trung told participants to the Viet Nam Connect Forum 2025 which took place in Ha Noi on April 23.

However, high-tech sector only accounted for about 5 percent of the total FDI volume, far below expectations, he said.

Viet Nam can no longer rely on cheap labor or low energy costs to remain competitive, he said, adding that the Southeast Asian nation needs to transit to a new phase of selective investment attraction, with a focus on high-tech projects that employ a skilled workforce and contribute to upgrading the value chain.

According to a representative from the Ministry of Finance, a key pillar in enhancing the quality of FDI lies in domestic workforce. Vietnamese workers in FDI enterprises are among the most elite labor sources. Notably, many Vietnamese professionals have taken on key positions in the management structures of foreign enterprises. This demonstrates that Viet Nam offers a favorable and suitable environment for FDI businesses.

The Vietnamese government has identified institutional reform and administrative modernization as essential prerequisites. Efforts will be made to accelerate the reform of tax, customs, and investment-related administrative procedures, with a focus on automation, digitalization, transparency, and reducing compliance costs for businesses, told Do./.