At a forum on October 8, Deputy Minister of Finance Tran Quoc Phuong said that links between domestic firms and foreign‑invested companies are still weak and that technology transfer has not met expectations.

The same weakness is reflected in the low share of Vietnamese enterprises that actually take part in global supply chains, according to Phuong’s remarks at the Finance and Investment Newspaper event.

In response, the Politburo issued Resolution No. 10‑NQ/TW on June 8, 2026, directing Vietnam to change its FDI policy. The new strategy will favour selective partners that can help the country move up global value chains.

The resolution marks a shift from attracting any foreign capital to seeking investors who can boost domestic capabilities, productivity, and technological capacity.

One practical obstacle is the cost of industrial land. In provinces surrounding Hanoi, rental rates for industrial park land have climbed to about $90‑100 per square metre per year, a figure cited by Vice Chairwoman Truong Thi Chi Binh of the Vietnam Association for Supporting Industries.

High financing costs add to the pressure. Binh noted that banks offer deposits that earn roughly 10 % a year, while profit margins in manufacturing are often lower, making the sector less financially attractive.

Another challenge is raising localisation rates. Binh explained that supporting industries need economies of scale and a sufficiently large market before local production becomes viable, so many foreign‑invested firms still rely on imported components.

These factors – weak domestic‑foreign links, limited technology spillovers, expensive land and financing, and scale‑related localisation hurdles – keep Vietnamese manufacturers on the periphery of global value chains, limiting the full benefits of incoming FDI.