FDI ATTRACTION TO VIETNAM IN THE CONTEXT OF THE GLOBAL MINIMUM TAX IMPLEMENTATION

Abstract

This paper examines the implications of the global minimum tax (GMT) for Vietnam's attraction to foreign direct investment (FDI) within the context of international financial integration. Drawing upon the extant theoretical framework and identified research gaps, this study proposes an analytical framework comprising three factor groups: (i) tax policies and investment incentive mechanisms; (ii) the institutional and investment environment; and (iii) the strategic responses of FDI enterprises. The findings indicate that while GMT implementation erodes the efficacy of low tax rate incentives – a conventional attraction tool – it simultaneously impels Vietnam to restructure its investment attraction model towards one based on quality, transparency, and sustainability. The paper recommends three primary policy directions: (1) developing a new generation of performance-based incentives; (2) strengthening institutional capacity and enhancing the investment climate; and (3) supporting FDI enterprises in their adaptation while promoting domestic value chain integration. This research contributes to clarifying the multi-faceted impact mechanisms of the GMT and provides policy implications for Vietnam in the emerging "post-tax incentive" era.