Strategic Solutions for Foreign Investors in Vietnam: From Policy to Practice in the APEC Context

As Vietnam continues to assert its position as a strategic investment destination in Southeast Asia, foreign direct investment (FDI) flows are shifting strongly toward high-tech, clean energy, and modern infrastructure sectors. However, to maximize returns and minimise risks, international investors must fully understand Vietnam’s legal framework, incentive policies, long-term development strategies, and now, also the evolving regional landscape around APEC. For companies planning Vietnam market entry or looking to expand their existing business in Vietnam, this understanding is essential to make informed and sustainable decisions.

Flexibility in Investment Approaches

According to experts, the first factor determining the success of foreign investors is choosing the right investment structure. Vietnam currently offers multiple market entry options, ranging from direct investment, through establishing wholly foreign-owned enterprises or joint ventures, to indirect investment via mergers and acquisitions (M&A).

For small and medium-scale projects, the limited liability company (LLC / “Company TNHH”) model is often preferred, allowing flexible capital management and governance. Multinational corporations typically opt for joint-stock companies (JSC / “Company cổ phần”), which support large-scale operations and easier access to capital markets. Another viable option is the Business Cooperation Contract (BCC), enabling investors to jointly implement projects without forming a new legal entity, commonly used in sectors such as oil & gas exploration, telecommunications, and energy.

For investors still exploring market potential, establishing a branch or representative office serves as an efficient first step, laying the groundwork for Vietnam market entry or export to Vietnam activities.

Policies and Legal Framework: The Foundation for Stability

Vietnam has been steadily improving its legal environment for foreign investment toward greater transparency, efficiency and international alignment. Investors are encouraged to familiarise themselves with sector-specific and regional incentive policies, including corporate income tax reductions, land rent exemptions, and other forms of support offered in industrial parks and economic zones, all of which create favorable conditions for sustainable business in Vietnam.

At the same time, strict compliance with regulations, particularly regarding cybersecurity, data localisation, and technology transfer, is essential to ensure sustainable investment operations. Vietnam is also enhancing oversight of conditional business sectors to balance FDI attraction with national economic security.

Importantly, investors can leverage the advantages of the bilateral and multilateral agreements that Vietnam is a party to, such as the CPTPP, FTAs, and RCEP, which not only open markets for export to Vietnam but also for Vietnamese products entering over 50 economies with significant tariff reductions. This represents a strategic edge that few countries in the region can match.

Investment Strategy Aligned with Sustainable Development

In an era of globalisation increasingly shaped by sustainability imperatives, investment in Vietnam should extend beyond short-term profits. International investors are placing greater emphasis on ESG principles (Environmental, Social and Governance), aligning their business strategies with Vietnam’s national green-growth agenda. Whether planning Vietnam market entry or scaling existing business in Vietnam, aligning with ESG and government development goals enhances credibility and long-term viability.

Priority sectors include high technology, renewable energy, logistics, digital finance, education and modern infrastructure. Selecting locations within specialised industrial parks or technology hubs, such as in Bac Ninh, Binh Duong, Da Nang, or Ho Chi Minh City, not only reduces operational costs but also provides access to established infrastructure and supply-chains. Analysts note that the “policy partnership approach”, where investment aligns with the government’s long-term development objectives, will be key for foreign enterprises seeking to secure a lasting foothold in Vietnam’s evolving economy.

The APEC Factor: What Investors Should Know

On top of national policy and structure, the regional institutional environment also matters. The Asia-Pacific Economic Cooperation (APEC) forum is playing an increasingly important role for Vietnam and foreign investors alike.

In July 2025, Vietnam hosted the third meeting of the APEC Business Advisory Council (ABAC III) in Hai Phong, bringing together about 250 delegates from the 21 APEC economies, discussing key topics like sustainable trade and investment, digital transformation, green finance and SME support. These dialogues are directly relevant for firms engaged in export to Vietnam or expanding business in Vietnam under evolving trade frameworks.

Vietnam is preparing to host the APEC Economic Leaders’ Meeting in 2027 on Phu Quoc Island. The government is already advancing infrastructure and venue preparations in Kien Giang province.

For the 2025 year, with APEC Chairmanship held by South Korea, the upcoming Leaders’ Summit in Gyeongju (Oct 31-Nov 1, 2025) is expected to be high-stakes, including major global leaders and potential shifts in trade policy.

What does this mean for foreign investors in Vietnam

The APEC process reinforces regional commitments to trade liberalization, digital economy, sustainable development, and supply-chain resilience, all themes aligned with Vietnam’s investment push and policies that support market entry to Vietnam and long-term business in Vietnam.

Hosting major APEC forums boosts Vietnam’s global profile, meaning increased attention from international investors, better international linkages, and heightened expectations of regulatory stability and transparency.

The timeline to 2027 means Vietnam’s authorities will focus on infrastructure, logistics and investment-friendly service environments, creating windows of opportunity for early movers, especially those targeting Vietnam market entry or export to Vietnam.

At the same time, the regional environment remains uncertain: In 2025, APEC warned of slowing export growth and raised concerns about rising protectionism. 

Foreign investors must remain alert to external risks (global trade tensions, policy shifts) even while seizing domestic opportunities.

Vietnam is entering a “golden phase” for attracting high-quality foreign investment. Yet success will depend not only on the market’s inherent appeal but also on investors’ ability to understand regulations, choose the right strategy, and align with the nation’s sustainable development goals. In an economy undergoing dynamic transformation, Vietnam is not merely an investment destination, it is emerging as a strategic development partner for global corporations pursuing business in Vietnam and beyond.