According to him, the foundation of high-quality, inclusive growth is ensuring that strong GDP growth translates into higher real incomes. To achieve this, Vietnam needs to shift toward a growth model driven by total factor productivity (TFP) while adopting rigorous FDI screening criteria to increase domestic value added and enable Vietnamese businesses to participate more deeply in global value chains.

How do you assess the role of attracting high-quality and sustainable FDI in achieving double-digit growth and improving the quality of Vietnam's economic development?

Over the past several decades, FDI has been both a driver and a source of resources that helped Vietnam transition from a low-income country to a lower middle-income country and now an upper middle-income country. This has been very an important achievement.

However, looking back at this process, Vietnam has not yet to fully optimize the benefits of this capital. The value retained domestically has largely come from labor costs. Other activities have mainly involved basic processing, packaging, and simple logistics services, with limited participation in higher-value chains or the transition to green technologies. Technology remains with foreign investors and has not been transferred to Vietnam.

Vietnam is gradually losing its low labor cost advantage. Once this advantage disappears, investors may move to countries with lower labor costs. Over the longer term, Vietnam therefore needs clear FDI screening criteria. Instead of focusing only on investment size, it should assess how much domestic value-added investors can create, which segments of the value chain Vietnamese companies can participate in, and the extent of technology transfer. These are the real benefits that remain in the country.

If Vietnam simply attracts FDI without considering these factors, it will eventually become a cost to the economy. If foreign investors fail to fully comply with environmental, social, and labor standards, the consequences could outweigh the benefits.

How do you assess Vietnam's FDI outlook this year, given the strong growth in registered FDI since the beginning of the year? What is your assessment of Resolution No. 50 on foreign investment development orientation, and how will it affect Vietnam's FDI prospects in the coming years?

The resolution is moving in the right direction and is well designed. However, the key issue lies in implementation. For example, under this policy direction, how many domestic companies will actually be able to connect with FDI enterprises? I believe this is what truly matters.

The increase in investment figures reflects only registered capital. When assessing FDI, it is necessary to examine how projects are actually implemented. Some projects may remain registered for years without being carried out. This is similar to project development in general: pre-feasibility studies are completed, feasibility studies are approved, projects receive approval, yet disbursement remains slow.

Large FDI companies may have more favorable conditions, while smaller FDI firms often face challenges similar to those of Vietnam's small and medium-sized enterprises (SMEs). When smaller foreign companies invest in Vietnam, they often bring their existing value chains with them, making it more difficult for domestic businesses to compete. That is why Vietnam needs clear screening criteria rather than attracting FDI at any cost.

What specific criteria should Vietnam adopt to attract high-quality FDI?

A wide range of criteria can be applied. In addition to traditional indicators such as total investment capital and the number of jobs created, projects can be evaluated using economic and financial criteria similar to those used in project appraisal. The first requirement is to quantify the level of domestic value retention, which is extremely important. The second is to assess the extent to which investment enables domestic businesses to participate in value chains and the level of technology transfer.

Vietnam is currently in the catch-up phase of innovation, meaning it is working to reach the level of more advanced economies rather than entering the frontier stage, where it develops and fully masters breakthrough core technologies.

How important is connecting domestic businesses to global value chains in addressing economic challenges and improving Vietnam's growth quality?

When discussing growth quality, the goal is to ensure that high GDP growth translates into higher incomes for people. If Vietnam succeeds in integrating domestic businesses into value chains, this will be the first important step toward addressing current challenges while ensuring that everyone has the opportunity to participate and benefit.

Vietnam now needs to shift from a growth model driven mainly by capital, labor, and other input factors toward one based on productivity, specifically total factor productivity (TFP). TFP includes technology, more efficient resource allocation, and better management and governance.

Small and medium-sized enterprises (SMEs) are an essential part of Vietnam's economy and need to become part of global value chains. SMEs account for approximately 97% to 98% of all businesses in Vietnam and create the largest share of employment. If these businesses can integrate into value chains, they will have the resources needed to create sustainable jobs. When GDP grows rapidly but fails to generate higher incomes or profits for those participating in value chains, that growth cannot be considered inclusive. This is the true meaning of growth quality.

Thank you very much!