Production at a foreign-invested company in Bắc  Ninh Province. During the first four months of 2026, Việt Nam secured several large-scale high-tech investments, reflecting an improvement in FDI quality. — VNA/VNS Photo Đồng Thuý

HÀ NỘI — While Việt Nam is attracting a wave of high-tech foreign direct investment (FDI), with major projects in semiconductors, electronics, artificial intelligence (AI) and advanced materials, experts say the country must strengthen its domestic capabilities to move beyond its role as a manufacturing hub and climb up global technology value chains.

During the first five months of 2026, Việt Nam secured several large-scale high-tech investments, reflecting an improvement in FDI quality as well as the country's strategy of selectively attracting projects that bring advanced technology, high added value and spillover effects for domestic firms.

The latest updates from the National Statistics Office showed that Việt Nam attracted US$24.81 billion worth of foreign investment in the period, up 34.9 per cent year-on-year. Around 65 per cent of the inflow is into the manufacturing and processing industries. 

Among the standout projects are Samsung Electro-Mechanics Vietnam's second facility with a total registered capital of US$1.2 billion in Thái Nguyên Province, and the over-$2.2 billion Quỳnh Lập LNG-fired power plant project in Nghệ An Province, both invested by the Republic of Korea (RoK).

Others include an artificial graphite anode material plant for lithium-ion batteries worth $282 million of the RoK's Posco Future M in Thái Nguyên, and the plant expansion to nearly $891 million by Hong Kong's BYD Vietnam Electronics in Phú Thọ Province.

These projects demonstrate Việt Nam's sustained attractiveness to investors in manufacturing, high technology and energy while highlighting the country's growing role as a favourite destination in the global reallocation of high-tech investments.

Đặng Thảo Quyên from RMIT University in Việt Nam said investments in battery materials, electronics, data centres and AI signal a clear shift in investors’ priorities. The expansion of research and development activities by companies such as Qualcomm also suggests that Việt Nam is emerging on the technology map of major global corporations.

While manufacturing remains dominant, the rising investment in energy and information and communications technology (ICT) indicates a transition from quantity to quality. The sharp increase in newly registered capital compared with 2025 further suggests that investors are choosing Việt Nam for long-term production and innovation activities rather than simple assembly operations.

However, Quyên noted that most current projects focus on manufacturing and assembly while critical functions such as product design, advanced R&D and high-level supply chain management remain concentrated in countries that control core technologies, including the RoK, Japan and the US.

Quyên observed that Việt Nam currently occupies a middle position in global value chains – a highly important role, but one that could be vulnerable to replacement if the country fails to upgrade its capabilities.

Move beyond strategic manufacturing hub

Economists say Việt Nam should adopt a more selective approach to attracting FDI in the coming years, shifting from tax-based incentives toward other forms of support that are tied to investment outcomes and performance.

Greater participation by Vietnamese firms in supply chains, supporting industries and technology-intensive segments will benefit both local companies and foreign investors while enhancing the country's investment appeal, said Nguyễn Văn Toàn, vice chairman of the Vietnam Association of Foreign Invested Enterprises.

He added that attracting next-generation high-tech FDI will require Việt Nam to move beyond its low-cost advantage and strengthen domestic capabilities, enabling local firms to secure higher positions in global value chains.

Economist Nguyễn Minh Phong identified technological mastery and high-quality human resources as two of the most important factors of Việt Nam's internal strength. He said that beyond long-term development strategies, financial capacity, innovation and adaptability, businesses need a skilled workforce capable of adapting to rapid advances in digitalisation, AI and automation.

Quyên noted that as global technology competition intensifies and technology blocs emerge, Việt Nam's ability to attract high-tech investment also depends on institutional reliability, intellectual property protection and data governance.

Việt Nam now has an opportunity to integrate more deeply into global technology supply chains. But turning investment inflows into genuine technological capability will require stronger R&D personnel, more effective technology transfer and incentive mechanisms linked to localisation and R&D, she added. — VNA/VNS