The Repositioning of Global Supply Chains and its Impact on Vietnam's High-Quality FDI Attraction Strategy
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https://doi.org/10.63640/3030-4091/jpd.apd.185Keywords:
Geopolitics and Industry 4.0; Technology Spillovers;Abstract
This paper investigates the shifting dynamics of global supply chains (GVCs) within the context of geopolitical friction and technological advancement, subsequently analyzing the impacts on Vietnam's strategy for attracting high-quality Foreign Direct Investment (FDI). The study employs the theoretical frameworks of GVCs, international investment, and FDI policy, combining qualitative analysis and secondary data to clarify both opportunities and challenges. Results indicate that while Vietnam holds advantages in human resources, geographical location, and open policies, the attraction of high-tech FDI is constrained by the supply chain's persistent reliance on inputs from China, inadequate synchronization of industrial and logistics infrastructure, and modest domestic innovation capacity. Based on these findings, the paper proposes a set of solutions: upgrading logistics and supporting industry infrastructure, refining incentive policies with a focus on high technology and value chain spillovers, developing a skilled workforce, and fostering innovation cooperation between FDI enterprises and the domestic sector. Policy suggestions include: establishing new industry clusters for chips – electronic components – EV batteries, reviewing licensing – land – tax procedures for high-tech projects, and mandating a "spillover linkage" mechanism between FDI and local enterprises.
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