At a recent forum organized by the Vietnam Industrial Parks Finance Association (VIPFA), the discussion on attracting FDI took a new approach: competition is no longer just about having land, infrastructure or incentives, but increasingly depends on the ability to build an ecosystem capable of meeting the demands of new investment flows.

Investors are looking beyond land

According to Phan Huu Thang, chairman of VIPFA, after nearly four decades of opening up to FDI, foreign investment continues to play an important role in Vietnam's industrialization, modernization and international integration.

However, FDI in the new phase should be assessed not only by the scale of capital, but also by technology, productivity, innovation, workforce training, business linkages, value added, green development and the ability to participate in global value chains, he noted.

Along with changes in investment flows, the industrial park model is also evolving. Thang said that while industrial parks were previously viewed mainly as places providing industrial land, infrastructure and factories, next-generation industrial parks need to focus on green infrastructure, clean energy, smart logistics, data, financial services, technology, research and development (R&D), human resources and supplier networks.

In particular, for high-tech, semiconductor, electronics, precision engineering, artificial intelligence (AI), green industry and other emerging industrial projects, the quality of an industrial park is becoming an increasingly important factor in investment location decisions.

"Investors are not just choosing land, incentives or labor; they are choosing a place with an industrial ecosystem," Thang said.

From the perspective of industrial park development, Nguyen Ngoc Lan, CEO of Song Lo II Industrial Park in Phu Tho province, said the requirements of FDI companies for infrastructure developers were changing.

While investors previously focused heavily on land rental costs, labor costs and available cleared land, location decisions now also take into account the local investment environment, alongside pricing and infrastructure requirements.

This means industrial parks can no longer focus solely on preparing land and infrastructure. Their ability to accompany and support investors throughout the process of exploring and implementing projects has also become part of their competitive strength.

From providing infrastructure to providing an ecosystem

Truong Minh, deputy head of the Foreign Investment Agency under the Ministry of Finance, said competition to attract investment was increasingly linked to supply-chain restructuring, digital and green transformation, energy security, human resources and the resilience of production chains.

Against this backdrop, Minh highlighted three issues.

First, competition for FDI is shifting from individual advantages to the capacity of the entire ecosystem. Investors are not simply looking at a plot of land or a particular incentive level but assessing industrial park infrastructure, electricity and energy, logistics, human resources, administrative procedures, financial and banking services, access to suppliers, legal services and support from local authorities at the same time.

Second, industrial parks need to shift from providing infrastructure to providing an investment-services platform. They can serve as hubs connecting investors with supporting businesses, banks, logistics providers, human resources, technology, energy and professional services.

Third, stronger linkages and spillovers between the FDI sector and Vietnamese businesses are needed. Going forward, the focus should remain on improving the quality and effectiveness of foreign investment, prioritizing high-tech projects, innovation, R&D centres, the digital and green economies and sustainable development, while strengthening links between FDI companies and domestic businesses, promoting technology transfer and developing highly skilled human resources.