Resolution opens new chapter for investing

For foreign investment, it represents a clear and compelling signal: Vietnam is open for business - not only in terms of access, but in creating the kind of stable, rules-based environment that foreign investors increasingly demand.

One of the strongest aspects of Resolution 68 is its renewed focus on improving Vietnam’s regulatory framework and governance environment. Investors, especially those with long-term interests, value predictability and transparency. Resolution 68 calls for digitalisation of administrative systems, reduced red tape, more efficient licensing procedures, and improved transparency in public sector management. These changes directly affect the day-to-day decisions of foreign companies choosing where to allocate capital.

With the intent to implement simplified procedures for investment approvals, land access, customs processes, and business registrations, Vietnam is positioning itself to reduce the friction traditionally associated with developing market investment. For companies setting up manufacturing bases or regional expansion, these improvements are not just convenient but foundational.

Resolution 68 reorients attention and incentives towards high-tech, green, and knowledge-based sectors. These include renewable energy, advanced electronics, digital services, and logistics, all industries where foreign investors already have a strong presence but are eager to scale further. By aligning policy incentives with these sectors, Vietnam is tapping into the future of foreign capital flows.

For indirect foreign investment, Resolution 68 offers promising developments. Vietnam is to move to deepen its capital markets through more rigorous corporate governance, digital disclosure systems, and a push to list more state-owned and large private enterprises. These moves improve transparency and create a wider, more reliable universe of listed companies.

This is essential for attracting foreign institutional investors, particularly those benchmarking Vietnam in emerging market indices. As depth and liquidity improve, so too does Vietnam’s appeal to pension funds, sovereign wealth funds, and asset managers seeking diversified exposure. There has been a scarcity of new equities and listings in Vietnam in recent years, and Resolution 68 seeks to address this.

The encouragement of initial public offerings, bond issuance, and strategic equity investments by local firms will also broaden the investable universe. This aligns with the rising interest of private equity and venture capital funds in Vietnam’s private sector growth stories.

A particularly notable element of Resolution 68 is its support for Vietnam’s startup and private business ecosystem. Recognising the private sector as the primary driver of employment and innovation, the resolution seeks to improve access to capital, simplify tax systems, and reduce administrative burdens.

Startups and high-growth private firms, which are generally overlooked by traditional banks in Vietnam, will benefit from reforms encouraging cash-flow based lending and improved credit assessment mechanisms. These reforms aim to shift Vietnam’s banking system away from a heavy reliance on collateral and towards more dynamic funding based on business viability.

At the same time, Resolution 68 outlines clearer legal protections and policy incentives for early-stage investments, co-investment mechanisms, and venture capital participation. This is expected to boost confidence among regional venture capital and angel investors considering a foothold in Vietnam’s increasingly competitive innovation scene.

Vietnam’s integration into global supply chains continues to deepen, especially as firms diversify production away from China. Resolution 68’s focus on industrial upgrading, logistics, and private sector competitiveness reinforces this position. Vietnam is not just a low-cost alternative, it is fast becoming a strategic hub for high-value manufacturing and regional coordination.

By aligning its legal, fiscal, and institutional frameworks with these aspirations, Vietnam makes a stronger case to multinational corporations weighing where to place their next investment.

While Resolution 68 is ambitious and widely welcomed, much depends on its implementation.

Historically, Vietnam has faced challenges translating central policy into consistent local execution. However, with the relatively seamless structural reform so far with merging of ministries and departments, and the impending restructuring of provinces and administrative level authorities being embraced by the community, it has shown that now is the right time for further change to be implemented.

Although not law itself, Resolution 68 comes as a political directive at the highest level, and sets responsibilities for all levels of government to implement, turning policy into practical benefit.

The country has already set a credible record of steady reform in recent years, particularly in areas linked to trade and investment liberalisation. With foreign investor sentiment already high and recent legislative improvements well-received, there is distinct optimism that Resolution 68 will move from intent to have a major impact.