Vietnam Approves Policy Direction for Key Industries Law to Drive Industrialization and Modernization

On April 3, 2026, the Vietnamese government issued Resolution No. 82/NQ-CP, officially adopting the policy direction for the Key Industries Law, aiming to accelerate the national industrialization and modernization process through institutionalized measures.

The policy framework, proposed by the Ministry of Industry and Trade, encompasses two core policy groups: first, encouraging the production and manufacturing of key domestic industrial products; second, vigorously developing supporting industries. The government has clearly mandated that the relevant legislation must address fundamental bottlenecks in the development of key industries, driving a transition from extensive to intensive industrial growth, and from simple processing and assembly to research, development, design, and manufacturing within Vietnam, thereby increasing knowledge and technology content.

Regarding the industrial development path, the new policy prioritizes the development of domestic manufacturing and supporting industries while pivoting toward high-value-added sectors. The policy encourages enterprises to pursue appropriate localization to comply with rules of origin in international trade, helping Vietnamese companies deeply integrate into global supply chains and fully leverage the preferential terms of new-generation free trade agreements.

In terms of foreign investment attraction, Vietnam proposes implementing a selective foreign investment attraction and management mechanism, giving priority to high-tech and basic industry projects, requiring them to be linked with technology transfer and collaboration with local enterprises to enhance the country's overall production capacity.

Meanwhile, the supporting legal framework is also being refined simultaneously. The revised Investment Law, which took effect on March 1, 2026, has shifted to a "selective investment" logic, simplifying approval procedures while strengthening post-investment supervision. It allows foreign-invested enterprises to establish companies before obtaining an investment registration certificate, though strict controls remain in sensitive sectors. Additionally, Decree No. 101/2026/ND-CP, effective April 1, provides strong fiscal incentives, including a 200% super-deduction for R&D expenses, to promote technology transfer and innovation.

Industry observers believe that these measures signify a shift in Vietnam's industrial policy from broad incentives to targeted support. Driven by a multi-pronged approach of regulations, investment, and fiscal policies, the goal is to build an autonomous, resilient, and high-value-added modern industrial system.