Vietnamese firms seek rules requiring FDI companies to source from local suppliers

The call was made at a local dialogue of the Vietnam Private Sector Forum 2026, held by the Vietnam Young Entrepreneurs Association in coordination with the Ninh Binh provincial administration and the Ninh Binh Young Entrepreneurs Association in Ninh Binh Province, northern Vietnam, on Thursday.

Le Minh Tuan, chairman of RoboMinh JSC and vice-chairman of the Ninh Binh Young Entrepreneurs Association, said Ninh Binh, which ranks among Vietnam's top 10 localities for FDI attraction, has drawn major investors, including Vina in high-tech and semiconductor industries, Hyundai and Honda in automobile and motorcycle manufacturing, and S-Mobi, Taing and AAM in supporting industries.

However, supply chains and links between private Vietnamese businesses and FDI companies remain weak and fragmented, with the gap between the two sectors appearing to be widening rather than narrowing, Tuan said.

"FDI companies are operating independently within their own ecosystems, while our private businesses are standing outside the flow," he said.

Tuan identified three major barriers: mismatched standards, a lack of trust and information between FDI companies and domestic businesses, and weak management capabilities among local firms.

He called for businesses to standardize product quality, proactively invest in meeting FDI standards and ensure sustainable supply capacity.

Other solutions include strengthening industry linkages and partnerships, promoting digital transformation and smart management, training workers in digital skills, facilitating technology transfer and building trust between domestic and foreign businesses.

Tuan also proposed that Ninh Binh adopt a selective approach to attracting FDI and introduce mechanisms requiring foreign-invested companies to increase local content and use domestic suppliers.

He suggested establishing credit funds to support technology and industrial development for private companies working with FDI firms, allowing them to access loans and credit guarantees.

The province should also accelerate infrastructure investment, provide serviced land at preferential rental rates and establish centers to connect suppliers and buyers, he said.

Economist Can Van Luc recommended that Vietnamese businesses build relationships through business and industry associations and establish more regular dialogue channels with FDI companies.

This would help identify what foreign investors need and what local businesses can provide, thereby creating opportunities for closer cooperation.

To strengthen these links, Luc said local authorities should focus on attracting higher-quality FDI, connecting foreign investors with domestic businesses, encouraging greater use of local resources and promoting technology and management transfers to Vietnamese companies.

Provincial authorities should also address policy obstacles facing businesses, while domestic firms need to become more confident and proactive about investing in technology and improving the quality of their products and services, he said.

Dang Thanh Son, vice-chairman of the Ninh Binh provincial administration, agreed that domestic businesses need to be more confident when they have strong management capabilities, financial resources and technology that meet requirements.

Son said more than 30 years of FDI attraction had helped Ninh Binh build a broad and diverse business ecosystem across various industries, including companies ranked among the world's top 500, such as Quanta, Q-Sir and ABC.

The province therefore wants local businesses to participate more deeply in the supply chains of global companies, he said.

Ninh Binh is currently reviewing a plan to develop an innovation ecosystem that includes private businesses.

The province plans to establish a core innovation center involving the government, businesses and educational institutions, connected to three specialized ecosystems focused on AI, semiconductors and robotics; heritage and tourism; and life sciences and medicinal plants.