Speaking at a government forum titled “Resolution 10: Developing a high-quality FDI ecosystem,” held by the Government Information and Communications Department on Friday, Binu Jacob, CEO of Nestlé Vietnam, said foreign investors had traditionally placed significant emphasis on investment incentives.

But the introduction of the global minimum tax has changed the equation, he said, with incentives increasingly serving as a supplementary factor rather than the core reason for multinational companies to invest or expand in Vietnam.

For global groups such as Nestlé, the first decisive factor is their confidence in the strategic direction set by the Vietnamese government, Jacob said.

A transparent and predictable policy framework is also critical, he noted, adding that while policy adjustments are inevitable as an economy develops, changes should follow a predictable roadmap.

What investors fear most is uncertainty and instability that cannot be anticipated, he stressed.

Jacob highlighted that the quality of Vietnam’s workforce is another key pillar supporting long-term investment decisions, alongside a strong supporting ecosystem that would allow multinational companies to implement long-term investment strategies.

Even if these conditions are not yet fully developed, clear government commitments to improving them could give investors greater confidence to expand, he stated.

The executive said Vietnam has recently made notable progress in governance and sent increasingly positive signals about its policy direction.

The country is among the few countries in the region to demonstrate what he described as a relatively consistent strategic vision, while its investment environment remains stable and its policy framework relatively predictable.

The country also has strong human capital, particularly among its younger generation, which Jacob described as having significant potential. The supporting ecosystem remains an area where Vietnam needs further development, he added.

While the current ecosystem does not yet fully meet investors’ expectations, links between foreign companies, domestic businesses, educational institutions, and research organizations are becoming increasingly established.

He said concrete policy measures and actions to strengthen those links would send a strong signal to investors.

Creating a more business-friendly environment would also allow domestic companies to strengthen their capabilities and become more reliable partners for multinational corporations, the executive remarked.

For foreign investors, long-term cooperation with suppliers ultimately rests on trust, he said. When strategic trust is established, foreign investors would certainly find effective solutions to challenges that arise.

According to the General Statistics Office, Vietnam lured $30.06 billion in registered foreign investment in the first seven months of this year, up 58% year-on-year, including $21.05 billion in newly-registered capital.