Analyzing the FDI-Based Growth Model in Vietnam: Evidence from Value Added and Economic Structural Transformation

This study analyzes foreign direct investment (FDI) inflows into Vietnam over the period 2015–2024, shifting the focus from the scale of FDI to its quality. Using official data from Vietnamese government agencies, the study examines the relationship between FDI, value added, exports, and economic structural transformation. The results show that FDI has contributed significantly to economic growth and export expansion. However, its impact on domestic value added and technological upgrading remains limited, with clear differences across sectors and localities. The study argues that FDI can serve as a driver of sustainable development only when it is embedded in a selective investment attraction strategy oriented toward value added and closely aligned with industrial and innovation policies. On this basis, the paper proposes policy implications aimed at improving conditional incentive mechanisms, prioritizing key sectors and industries, and strengthening linkages between the FDI sector and domestic enterprises. Vietnam’s experience provides reference lessons for developing economies that rely on FDI.