Regulations on set of criteria for assessment of efficiency of foreign investment in Vietnam

Regulations on set of criteria for assessment of efficiency of foreign investment in Vietnam 

The set of criteria for assessment of the efficiency of foreign investment in Vietnam is enclosed with Decision No. 315/QD-TTg, applicable to foreign direct investment under the investment forms prescribed in Article 21 of Law on Investment 2020.

The set of criteria for assessment of the efficiency of foreign investment in Vietnam includes 42 criteria, with 29 economic criteria, 8 social criteria, and 5 environmental criteria specifically as follows: 

29 economic criteria are divided in to 6 groups as follows: 

(1) Criteria concerning scale and contribution to the socio-economic development of foreign-invested areas (8 criteria): 

- Growth rate of added value in GDP of foreign-invested areas; 

- Proportion of added value in GDP of foreign-invested areas; 

- Growth rate of the registered foreign investment capital; 

- Ratio of the adjusted value of foreign investment capital; 

- Growth rate of the implemented foreign investment capital; 

- Ratio of the implemented foreign investment capital to the registered foreign investment capital; 

- Proportion of the implemented foreign investment capital in the total social investment;

- Proportion of equity of foreign investors in the total implemented foreign investment capital. 

(2) Criteria concerning the operational efficiency of foreign-invested economic organizations (10 criteria):

- Profit before tax; 

- Return on total assets of foreign-invested economic organizations (ROA); 

- Return on equity of foreign-invested economic organizations (ROE); 

- Return on sales of foreign-invested economic organizations (ROS); 

- Proportion of export of foreign-invested economic organizations; 

- Proportion of import of foreign-invested economic organizations; 

- Proportion of export of key goods of foreign-invested economic organizations; 

- Proportion of import of key goods of foreign-invested economic organizations; 

- Growth rate of the export value of foreign-invested economic organizations; 

- Growth rate of the import value of foreign-invested economic organizations; 

(3) Criteria concerning amounts transferred to the state budget of foreign-invested areas (3 criteria):  

- Amounts transferred to the state budget of foreign-invested economic organizations; 

- Growth rate of amounts transferred to the state budget of foreign-invested economic organizations; 

- Proportion of amounts transferred to the state budget of foreign-invested economic organizations in the total state budget revenue. 

(4) Criteria concerning pervasive impacts of foreign-invested economic organizations (02 criteria):

- Ratio of the use of input materials domestically produced of foreign-invested economic organizations;

- Ratio of foreign-invested economic organizations linked with domestic manufacturers and providers. 

(5) Criteria concerning technologies of foreign-invested areas (2 criteria):  

- Ratio of foreign-invested economic organizations eligible for the issuance of certificates of technology transfer registration according to technology transfer laws; 

- Ratio of foreign-invested economic organizations applying high technologies. 

(6) Criteria concerning foreign-invested contributions to the improvement of Vietnam’s innovation capacity (4 criteria): 

- Number of foreign-invested economic organizations with innovation centers and research and development centers; 

- Ratio of foreign-invested economic organizations with innovation centers and research and development centers in Vietnam; 

- Growth rate of foreign-invested economic organizations with innovation centers and research and development centers; 

- Growth rate of capital sources for expenditures on innovation, research, and development of foreign-invested economic organizations in Vietnam. 

See more details in Decision No. 315/QD-TTg, effective as of February 18, 2025. 

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